Job Evaluation: Determining the Value of Roles

Equal Opportunity Act, Chap. 22:03 · Industrial Relations Act, Chap. 88:01

Why This Matters

Before any salary figure is assigned to a role, an employer needs to understand what that role is worth relative to every other role in the business. Job evaluation is the process that makes that determination; it assesses the relative weight of each position based on its responsibilities, skill requirements, effort demands, and working conditions, and produces a defensible basis for pay decisions that employees and managers can understand.

The absence of job evaluation is one of the most common causes of pay inequity in SMEs. When pay is set role by role, hire by hire, without a consistent framework, the result is almost always a payroll in which two employees doing work of comparable value are paid differently, not because of legitimate differentials in experience or performance, but because of when they were hired, how confidently they negotiated, or how urgently the business needed to fill the role. Under the Equal Opportunity Act (Chap. 22:03), an employer is required to ensure that compensation does not discriminate on the basis of sex, race, or other protected characteristics. A structured job evaluation process is one of the most effective tools for demonstrating that pay decisions are grounded in the nature of the work, not in factors unrelated to it.

The Job Evaluation Method

For most SMEs, a straightforward factor-based evaluation is sufficient. Each role is assessed against four core factors, and a score is assigned for each. The total score positions the role within the pay hierarchy and determines the appropriate salary band.

1. Responsibility

Responsibility covers the scope of decision-making authority the role carries, its impact on business outcomes, and accountability for people, budgets, or assets. A role that manages a team and owns a budget scores higher than a role that executes defined tasks within a supervised environment.

2. Skills Required

Skills Required covers the education, professional qualifications, and experience the role demands, as well as any technical or specialist competencies without which the role cannot be performed effectively. A role requiring a professional designation or several years of demonstrated expertise scores higher than an entry-level role where on-the-job training is expected.

3. Effort

Effort covers both the mental and physical demands of the role, the concentration, analytical thinking, or problem-solving intensity required, as well as any physical demands associated with the working environment.

4. Working Conditions

Working Conditions covers the environment in which the role is performed, including exposure to hazards, irregular hours, travel requirements, or other conditions that represent a burden on the employee beyond the standard working day.

Each factor is scored on a scale of one to five, where one reflects minimal demand and five reflects the highest level. The total score across all four factors positions the role within the internal hierarchy and provides the starting point for salary band assignment.

How to Use Job Evaluation Results

Once all roles have been scored; they can be ranked from lowest to highest total score. This ranking should correspond to the salary structure described in Chapter 11, roles with higher scores should sit in higher salary bands. Where the ranking produces a result that appears counterintuitive, it is worth reviewing the scoring rather than overriding the result. In most cases, a surprising result signals either an inaccurate job description or an informal pay arrangement that has never been properly justified.

Job evaluation scores should be reviewed whenever a role changes substantially in scope, when a new role is created, or when a compensation review is conducted.

Practical Insight: Employer Risk A common error in SMEs is evaluating the person rather than the role. Job evaluation is designed to assess what the position requires, not how well the current incumbent performs it. Performance is a separate variable, addressed through performance management and merit-based pay adjustments. When job evaluation conflates the role with the individual, it produces scores that are subjective, inconsistent, and indefensible if challenged. Train anyone involved in the evaluation process to assess the role as it is defined, not as it is being performed by the current employee.

Template – Job Evaluation Scorecard

Use this scorecard to assess each role systematically before assigning it to a salary band. Complete one scorecard per position and retain on file as part of the compensation framework documentation. Scores should be reviewed when a role changes materially in scope or responsibilities.

Factor	Score (1–5)	Assessment Notes
Responsibility		Decision-making authority, accountability for people/budget/assets, business impact
Skills Required		Education, professional qualifications, years of relevant experience, technical competency
Effort		Mental concentration, analytical demand, complexity of problem-solving, physical requirements
Working Conditions		Environment, hazard exposure, irregular hours, travel requirements
Total Score	/20

Position
Department
Date of Evaluation
Evaluated By
Next Review Date