Job Evaluation Methods for Determining Relative Job Worth in Organizational Compensation Structures

Mochamad Irfan

Authors

Mochamad Irfan Universitas Mayjen Sungkono Mojokerto

Keywords:

job evaluation, job worth, point factor method, compensation fairness, systematic review

Abstract

This study examines the systematic process of job evaluation and job worth determination as a foundation for fair compensation management. A qualitative literature review method was applied following the systematic review guidelines. The analysis synthesizes theoretical principles from four main methods: ranking, classification, point factor, and factor comparison. The point factor method demonstrates superiority in handling large organizations with diverse job functions. Success determinants include appropriate factor selection, weight assignment aligned with organizational strategy, and clear level definitions. Representative committee involvement and adequate training are essential to avoid bias during evaluation. Validity and reliability tests must be conducted before constructing pay structures. Transparent socialization and fair appeal mechanisms enhance employee acceptance of new systems. Regular evaluation every three to five years maintains system relevance amid business environment changes. This normative framework provides practical guidance for organizations initiating job evaluation processes. The study contributes to human resource management literature by presenting an integrated conceptual model of job evaluation that balances internal consistency with external market competitiveness. Three evaluation methods are compared systematically to reveal their suitability under different organizational conditions.

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