Job Grade

Published by MBA Skool Team, Last Updated: May 26, 2020

What is Job Grade?

Job grade is defined as a collection of jobs that are considered having the same value or worth for compensation purposes. Job grade classification helps in the recruitment process, compensation system and training and development planning of the employees in the organization.


The jobs that form a part of a specific job grade have similar job descriptions and requirement of knowledge, skills and abilities, thus making the pay scale similar for all those jobs. It is very similar to pay grade where all jobs having the same pay are grouped together, except that these jobs have similar descriptions and specifications whereas jobs in the same pay grade might not have the same descriptions and classifications.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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