One of the major aims of the administration of payment is to serve the gaps of differences among the employees which mean that they must juggle around three major factors which are: performance, equity and market rate of the organization. Well, it is difficult to pay the employees fairly on the basis of their contribution in the firm as it may lead to tension built in labor market making it difficult to serve better working relationships. The question which always pop up here is how much shall A be paid which must be more than the salary of B and less than that of C. Some measurements need to be introduced in the systems as it is relatively tough to decide on how much shall an individual be paid which means that comparing the job structures and pay are more difficult than expected.
In order to resolve such an issue, the method of job evaluation in widely used by major firms in UK and thus is one of the long-established techniques to resolve such inequities. As per the survey conducted in the year 2004 by CIPD, it has been witnessed that this technique is highly effective in recent years and is expected to grow with coming years ahead. Though the methods of job evaluation are widely appreciated in private sectors, local authorities, NHS and public sectors are also relying on this technique to verify the equity of each employee in the firm. As a matter of fact, the method of job evaluation is tilted as the only management tool which will ever be refused to go out of trend in organizations.
The key motive of the method is to introduce a fair method to evaluate sense of policies and fair increase in the employment in an organization. When a firm decides to restructure their terms and policies in regards to employment structure, they generally adopt this method of job evaluation which might include decisions like mergers or agreement signing with trade unions under single status contract.