What is the job classification system based on?

The job classification system is based on grouping jobs into predetermined wage grades. This approach involves analyzing and categorizing jobs based on their duties, responsibilities, and the required qualifications. By establishing a standardized classification, organizations can create a structured pay scale that helps to ensure internal equity and consistency in compensation.

This system allows organizations to compare similar jobs and determine appropriate wage levels, facilitating fair compensation practices. It also aids in establishing clear career paths for employees, helping to identify progression routes within the organization. Additionally, grouping jobs into wage grades supports compliance with equal pay legislation by ensuring that jobs of equal value are compensated similarly, thereby reducing potential wage discrimination issues.

In contrast, alternatives like numerical performance ratings, direct evaluations, and employee self-reporting do not focus on establishing a systematic classification of jobs for wage purposes, making them less relevant to the job classification system.