Definition Job Evaluation:
Job Evaluation is the process of objectively determining the relative worth of jobs within an organization. It involves a systematic study and analysis of job duties and requirements. The evaluation is based on a number of compensable factors. Job evaluation can measure the value of all jobs within an organization and produces a rank order ranging from entry level positions to the most senior positions within an organization. It provides a framework to administer pay.Labour costs are any costs associated with staffing. These include the host or hostess that greets the customer, the servers, cooks, bus people, dish and pot washers, the chef and sous chef, the dining room manager and the owner. Labour costs include wages and salaries, Employment insurance contributions, WCB contributions and any benefits afforded to employees such as supplied uniforms and cleaning, medical or dental plans and staff meals which are a taxable benefit according to Revenue Canada.
An assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required.
The objective of job evaluation is to determine which jobs should get more pay than others. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. Job evaluation forms the basis for wage andsalary negotiations.