Job Evaluation is the method of relative valuation of jobs to determine the appropriate value or worth of a job and preparing an appropriate pay structure in the organization. Job evaluation takes into consideration the tasks, duties and responsibilities in the job description and the amount of effort that is required to be put in by the employee along with the working environment conditions.
Job evaluation forms a base for managers to use for wage or salary negotiations. It also helps in finding the wage structure for new jobs and also understanding their relative worth. Employees working in specialist positions will get rated higher in the evaluation thus getting a higher pay that will increase the motivation levels for the employee.