Why job evaluation is important for an organization?

Why job evaluation is important for an organization?

Job evaluation is a valuable technique by which a more rational and consistent wages and salary structure can be evolved. As it eliminates wage inequalities within the organization so it helps in maintaining harmonious relationship between labour and management. It is a standardize process of determining the wage differentials for various jobs. It takes into account various factors like risk, working condition etc. Job evaluation also helps in reducing the cost of recruitment and selection of workers.