Job grading establishes the relative value of different positions, typically placing them into levels or grades. This creates a framework for compensation, career progression, and organizational structure. Consistent grading ensures fair treatment across roles.
Evaluation Methods
Common approaches include point-factor systems evaluating dimensions like knowledge, problem-solving, and accountability; whole-job ranking comparing positions holistically; and classification fitting jobs into predefined categories. Different methods suit different organizations.
Grade Structures
Organizations typically have defined grade structures with levels for different position values. Each grade has associated compensation ranges. Career paths connect grades, showing progression possibilities. Structure design balances granularity with simplicity.
Global Grading
Global organizations often use consistent grading frameworks worldwide, enabling comparison across countries. While compensation amounts differ by market, grade levels facilitate global mobility, equity comparison, and organizational design.