What is Job Classification?

Job classification

Job classification is a systematic process which involves grouping the jobs according to their similarities. In this process jobs are compared in terms of their characteristics whereby, those jobs with the similar responsibilities, tasks, complexity as well as similar required skills, knowledge, and abilities (SKA) are grouped together. The aim is to determine the authority of the jobs and ranking them in an organizational hierarchy. But also aims at determining and setting the salary range to each position in an organization. When classifying the jobs the hr managers don't look over the knowledge, skills and ability of the job holders, but the knowledge, skills and ability needed to perform the job. 

The purpose of job classification

The main purpose of job classification is to Identify the responsibilities, roles and skills, knowledge and abilities required in a job so as to evaluate a fairly compensation to each employee in each position within an organization. Other purposes include identify training needs, to Identify job specifications and to hire a right person in a right position.

1. To Identify training needs

Since job classification involves determination of essential skills required in a job, its easy for employers to identify training needs.

2. To evaluate a fairly pay rate

By classifying the jobs employers can identify complex jobs, important jobs and related jobs in an organization. This can helps them to set a fairly pay in each position. 

3. To identify specifications of a job

Job are classified based on required skills, knowledge and ability. Thus, employers can use job classification as a way to identify the qualifications of the jobs.

4. To hire a right person

Another purpose for job classification is to recruit and place a right employee in a job, this is accompanied by the qualifications of the jobs such as skills, education and abilities identified during job classification process. 

5. To categorize and grade the jobs

Job classification can also be used to categorize jobs and rank them according to their characteristics within an organization.

Steps of job classification

According to Pelago the process of classifying jobs pass through five steps which are; 

1. Determining the job’s purpose and the essential functions (roles) of the position. 
2. Determining the qualifications required for the position.
3. Determining the wage or salary for the position.
4. Determining the classifications and levels for the position.
5. Updating the job classification system. 

Also Pelago says that the right time for job classification to be carried out is:

• When the company is making changes to the job roles.
• When the company is revising its pay grades.
• When the company is conducting a performance review (perform appraisal).

Pelago adds that, the people who should be involved in job classification process are the people who are doing the job (the employees), the management and the human resources department.

Job classification vs job evaluation

Job classification is sometimes confused with job evaluation but these two terminologies are different though have close meanings. Job classification is a process of categorizing jobs into groups according to their responsibilities, required knowledge and skills, while job evaluation is a process of evaluating a value of a job by comparing it with other jobs, this can be done by using different methods including point factor, factor comparison, job ranking and job classification. In addition, job classification is a specific method of job evaluation.

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