Job Classification

What Is Job Classification?

Also known as job valuation, job classification is the process that an organization uses to fully evaluate the complexity, scope, duties, and responsibilities of a position within the company.

Job classification is used to ensure that the job title for each role matches both its standards and job specifications.

While job classifications can and do vary within different organizations, their main goal is to accurately determine job responsibilities.

Here are some examples of classification:

1. Responsibilities

2. Communication

3. Consequences of Error

4. Scope

5. Complexity of Role

6. Freedom and Autonomy

Keep in mind that you should always classify jobs in a way that’s relevant to your organization and the job roles you have.

What Is the Importance of Job Classification?

Job classification is an easy concept to grasp – but why is it important?

Here are just a few reasons why it’s essential for many businesses and organizations:

  • It creates consistent job levels within the hierarchy of any given organization
  • It creates a sense of fairness in an organization – especially within equivalent employee jobs

Advantages and Disadvantages of Job Classification

Now that you know what job classification is, you should look at the advantages and disadvantages to decide whether it’s right for your business.


  • Similar jobs can be grouped together to ensure a streamlined workflow
  • Helps create a broadband pay structure – consolidating page grades into fewer pay ranges
  • It can allow employers to offer pay raises to staff without having to promote them within the organization


  • The data pool that is gathered is often small, due to the fact that it only applies to any one given organization.
  • It can often be subjective – the person who evaluates the job may not fully understand the importance or nuances of any given role. One way to combat this issue is to have someone who is currently in the role to write up their duties and skills to assist in better classification.


See our full list of over 50 Small Business Terms here


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