HR Glossary for HR Professionals
Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.
What is a Job Classification?
Job classification is the process of standardizing and defining the duties, responsibilities, tasks, and scope associated with a certain job. Job classification develops a description of a position without taking into account the individual(s) currently in the role and their skill, scope, and job experience.
Job classification is typically conducted at large companies, government agencies, and nonprofit organizations. At these organizations, pay or salary grades are often associated with the job classifications.
Hay Job Evaluation Method
The most widely accepted job evaluation method in the world, this method uses a point system to assign value to a job component in relation to other jobs within the organization. The benefits of using the Hay Job Evaluation system are:
- Establishing equitable compensation relationships among jobs
- Clarity in results-getting activities within the organization
- The creation of useful and impactful job descriptions
- Improved succession planning within the organization
The job classifications are determined by three main factors – “know how,” “problem solving,” and “accountability.” The dimension of each of these factors can vary by organization.
Most organizations take the following steps to implement the Hay Job Evaluation in conjunction with using trained professionals on the method:
- Training representatives from all departments and HR on using the Hay Job Evaluation method
- Revising all job descriptions with oversight from the human resources department
- Creation of a job evaluation board with representatives from management and human resources
- Creating an organization map and salary banding
- Review of the organization map by the board.
Job Classification vs job title
Job classification is the system used to determine the duties, responsibilities, tasks, and scope associated with the job to determine a specific job title. Job classification can also be used to determine the appropriate job description and job title for a position.