Job Ranking Meaning & Factors

Published by MBA Skool Team, Last Updated: September 17, 2021

What is Job Ranking?

Job Ranking is a job evaluation method in which jobs are ranked or arranged in order of their value or merit to the organization based on parameters like skill and effort. The Job evaluation is an important exercise in any organization today which determines the value/worth. The jobs at the top of the list provide more value to the organization and its relative importance keeps decreasing as we move down the list.

It has often been seen that due to its simplistic nature, this method works well for small organizations but is not very effective for big organizations where the jobs are large in number and thus this becomes a complex process.

There can be various statistical methods to rank jobs in an order which can be actionable for the HR and senior management but it can be as simple as an ascending list of various jobs and positions in an organization by parameters below.


Various Factors in Job Ranking

Job ranking can use various factors/parameters like:

Skills and Qualifications

Jobs which require higher skills and qualifications like masters degree may be of more worth to the organization and the employee in such roles may demand more compensation.

Effort Required

One of the primary parameter in any job evaluation would be the amount of efforts in hours or days which are required to fulfil the responsibilities of the job. More the effort, more would be the value of the job to the organization as more efforts would be required on more critical tasks.

Roles & Responsibilities which includes the KPIs and Accountability

The actual roles and responsibilities of the job role would valuate a job role in an organization. Number of responsibilities would determine the skills and efforts required for the job.

Risk and Criticality of the job role

The criticality of the job role would be an important parameter in defining the job ranking. More critical is the job, more value it will have for the company. In addition to the parameters above, the criticality will add more value to the job valuation.

Hence, this concludes the definition of Job Ranking along with its overview.

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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