From job evaluation to fair pay – We explain the most important terms

Job evaluation criteria, job evaluation system, job architecture, pay structure – four terms that are closely related but often confused. What exactly do they mean and how do they interact? INES Analytics explains.

Job evaluation criteria

= Evaluation criteria

Job evaluation criteria serve to record the requirements and complexity of tasks in a structured, comprehensible manner that is independent of the person performing them. On this basis, different tasks can be compared objectively with one another.

The EU has defined four key criteria for gender-neutral job evaluation. These are recommended in the guidelines of the International Labour Organisation (ILO) and the European Commission, among others, and are recognised as established evaluation standards in the EU Member States (ILO, 2008; European Commission, 2013):

• Skills

• Effort

• Responsibility

• Working Conditions

Job evaluation system

= Evaluation method

The job evaluation system systematically applies the job evaluation criteria and evaluates each activity according to its value, e.g. through point scoring, analytical methods or ranking.

Job architecture

= Classification system

The job architecture systematically organises all activities recorded and evaluated within the company. The job architecture clarifies job families and hierarchical levels. The job architecture also organises career paths and development opportunities.

Pay structure

= Remuneration system

The remuneration structure transforms the job architecture into actual compensation. It defines the salary bands, pay components and salary increases.

Connection between the concepts

Job evaluation criteria are systematically applied within the framework of a job evaluation system in order to evaluate activities objectively and in a gender-neutral manner. These evaluated activities are structured in the job architecture, which in turn forms the basis for the pay structure.

If tasks are classified according to clear criteria such as skills, effort, responsibility and working conditions, equal and equivalent work can be compared fairly – and pay differences can be made visible or objectively justified.