What is Job ranking?

Job ranking is a method of ranking job positions compared to others within an organization. The job ranking system depends on evaluating the job position based on the ability of skills. Job ranking can help you determine which jobs are most critical to your organization’s success. It’s clear to understand how much time you should devote to each job and what skills are necessary for success in each role.

What are the factors affecting job ranking?

Job ranking is often decided based on the importance of a role. There are other factors which also determine the job ranking like the – decision making power, skillset, experience, impact on organization, and more. Each factor is determined before assigning a job its rank within an organization.

Steps of a Job Ranking process:

• Gather job information: The first step in developing a job evaluation ranking is job analysis. Job analysis is the process of collecting and documenting information about the job. This includes defining the job position, describing the tasks, identifying skills and knowledge required for each task or responsibility. And determining how much time people spend on various tasks or responsibilities per day or week, and any other information that will help you develop your ranking system.
• Group jobs by cluster: It is only possible to rank some jobs in an organization at once. So, the usual procedure is to rank jobs by department in order to avoid direct comparisons.
• Select the compensable factors: Clearly explain the definition of whatever factors you are considering to the evaluators.
• Job ranking: The next step is to rank the jobs in order of importance using a simple technique called card ranking. Here, each raters are given a set of index cards containing a brief job description. The lowest ranking card is placed at the bottom of its stack, and each subsequent card is placed on top of it in numerical order.
• Combine ratings: It is common practice to have several raters rank jobs independently. The next step in the process is to classify all the jobs in a particular group by considering common features such as similar duties and skills required for each job. Once accomplished, the rating committee calculates the average of these rankings.

What are the benefits of job ranking?

While job ranking create a hierarchy within the organization and benefits companies, it also benefits the employee:

• Better payment structure: Employees are paid according to their experience, skillset, authority and contribution to the company. This ensures fair compensation for every employee within the organization.
• Improved Career mapping: With a properly structured job role hierarchy, the employees will have a clear understanding of what to do to move forward within the organization and inculcate the skills themselves.
• Succession planning: Companies that follow a job ranking system can make informed decisions and create succession planning for candidates within the organization. Internal transfers and hiring are better alternatives to hiring outside resources who have no idea about the organization.

FAQs

What is the job ranking method in HRM?

Job ranking in HRM means ranking employees based on their job roles, skillset and decision-making capability. It creates an organizational hierarchy promoting structure within the organization.

What is a job level?

While job ranking refers to the system within an organization, job level are the titles and salaries allotted to job roles in an organization. For example, an entry level job and a managerial level job will pay different.

What is the job classification?

A job classification means to evaluate the job role by studying the job responsibilities, skills and work required for the position. Job classification is done to determine whether the job role matches the standards of the market.