Attracting and retaining talents is important in any organization.

Appropriate compensation structure is one factor for these things to be achieved.


There are two fundamental elements that play a significant role in ensuring equitable compensation and maintaining a motivated and engaged workforce: job evaluation and salary structure design. These interconnected processes form the foundation of a well-structured and fair remuneration system.


First, let us talk about the relevance of job evaluation in an organization.


Job evaluation is the systematic process of determining the relative value of different jobs within an organization. Its primary objective is to establish an internal hierarchy of positions based on the roles, responsibilities, skills, and qualifications required for each job. By assigning a relative worth to each position, job evaluation provides a foundation for constructing salary structures.

Several methods are employed for job evaluation; this includes the point factor, ranking, classification, and factor comparison methods. Each method assesses various job factors such as skill level, complexity, responsibility, and working conditions to understand a job’s contribution to the organization comprehensively. As jobs evolve and organizations adapt to changing environments, regular reviews and updates of job evaluations are essential to ensure accuracy and relevance.


On the other hand, the salary structure design focuses on developing an internal job hierarchy and aligning with the external market. A well-crafted salary structure encompasses a range of pay levels for different jobs, providing employees with clear growth paths and enabling the organization to attract, retain, and motivate top talent.


The intersection of job evaluation and salary structure design requires careful attention to balance internal consistency with external market realities. Organizations that successfully navigate this delicate equilibrium cultivate a motivated and engaged workforce and enhance their ability to attract and retain top talent in an increasingly competitive landscape.


Both job evaluation and salary structure design are essential cornerstones of a well-functioning and equitable compensation system. Organizations can establish a strong foundation for employee satisfaction, performance, and organizational success by systematically assessing job worth and aligning pay with internal and external factors. As businesses evolve, these processes remain crucial in adapting to changing dynamics while upholding fairness and transparency.


To learn more on how we conduct job evaluation and salary structure design, join ECOP’s 3-session online program on Job Evaluation and Salary Structure Design on August 22, 24, and 29, 2023 from 9:00 a.m. to 12:00 n.n.


Register for the Job Evaluation and Salary Structure Design program