Job classification

Updated April 23, 20244 min read

What is Job classification?

Fair salaries and a uniform organizational hierarchy are common goals for businesses and organizations. Therefore, large-scale firms adopt a system of job classification to make sure that every person is aware of their job responsibilities and receives a fair wage commensurate with the task they perform.

What is Job classification

Importance of job classification

The outcomes that job classification produces for the organization can be seen as evidence of its importance in human resources management. In addition to creating parity between job titles and a uniform degree of job hierarchy across the organization, it also establishes the compensation range based on the specified job criteria.

a) To aid in hiring and selecting candidates by establishing important qualification standards.

b) To assist in creating and developing performance and evaluation standards.

c) Allocating tasks that support the realization of an organization's business plans and strategies and are in line with the mission and vision of the company.

d) Organizational career and growth paths are identified.

e) Establish compensation guidelines.

The benefit of job classification

a) Job roles that are equivalent or comparable can be grouped.

b) It could support a company's wage structure being appropriate. small-scale wage discrimination.

c) Improve the organization's workflow.

d) Helps individuals who execute the same task across the firm get promoted, paid more, and given a higher job title.

Drawbacks of Job Classification

a) The pool of data is minimal because each business develops its classification scheme.

b) Re-evaluation regularly: If the organization is expanding, each new position that is added can necessitate a re-evaluation of all existing positions in the sector to guarantee that the classifications remain equitable throughout the organization.

c) Subjective classifications: humans contribute to the creation of the classifications subjectivity occasionally has an impact on the system.

Abhishek Kathpal

Abhishek Kathpal

Abhi is the co-founder of, enabling 50+ recruitment businesses build better client and candidate relationships.