Job Classification

Job classification is a method of organising jobs into predefined categories or classes based on their duties, responsibilities, qualifications, and required skill levels. Rather than focusing on the performance of individuals, job classification evaluates the role itself and assigns it to a level or group within a broader framework. This system is widely used in both public and private sector organisations to ensure consistency and fairness in HR management.

The primary purpose of job classification is to create a structured approach to managing roles and responsibilities within an organisation. It ensures that:

• Jobs with similar value and complexity are grouped together
• Employees understand where their roles fit within the organisation
• Compensation, benefits, and career paths are aligned with job levels

This process also helps with workforce planning, recruitment, pay equity, and compliance with employment regulations.

“Job classification brings clarity to role expectations and pay structures, helping HR teams operate more transparently.” – HR Operations at Native Teams

Job classification typically involves the following steps:

1. Job analysis: gathering information about job duties, required skills, and responsibilities
2. Job documentation: writing detailed job descriptions
3. Evaluation: assessing the job based on factors like complexity, decision-making authority, and required experience
4. Classification: assigning the role to a class or grade within the organisation’s job structure

Depending on the framework used, jobs may be classified into bands, levels, or grades.

Several formal systems are used across industries, including:

• The General Schedule (GS) system: widely used in the US federal government, categorising jobs from GS-1 to GS-15
• Hay Method: evaluates jobs based on know-how, problem-solving, and accountability
• Point Factor System: assigns numerical scores to different job elements
• Factor Comparison Method: ranks roles by key job factors like skill, effort, and working conditions

Many organisations also develop their own internal job frameworks tailored to their size and structure.

While job classification and job evaluation are closely related, they serve different purposes:

Learn more about hiring employees vs contractors to understand how job evaluation factors into pay decisions.

Job classification offers multiple benefits for employers and HR professionals:

• Standardisation of job roles across departments
• Transparency in how roles are valued
• Efficiency in workforce planning and recruitment
• Fair compensation and career progression structures
• Helps ensure compliance with local labour laws

“Using a consistent job classification system promotes internal equity and helps avoid pay disputes,” – Compliance Department at Native Teams

Despite its benefits, job classification also presents some challenges:

• Can be rigid and less responsive to rapidly evolving roles
• May not reflect the actual complexity or impact of certain jobs
• Disagreements may arise if employees feel misclassified
• Time-consuming to maintain and update regularly

To manage these challenges, many organisations pair classification with regular job audits.

To get the most out of job classification, consider these best practices:

• Regularly review and update job descriptions
• Involve line managers in the classification process
• Maintain clear documentation and audit trails
• Ensure HR and payroll systems reflect classification updates
• Align job levels with your global hiring strategy

Here are a few examples of job classifications in action:

• Customer Support Roles: Classified into Level 1 (entry-level), Level 2 (intermediate), and Level 3 (team lead or specialist)
• Engineering: Junior Developer → Developer → Senior Developer → Principal Engineer
• Marketing: Marketing Assistant → Marketing Executive → Marketing Manager → Director of Marketing

These examples help set expectations for both job responsibilities and career progression.

• Job classification is a method for grouping jobs based on duties and qualifications.
• It supports consistent pay, transparency, and workforce planning.
• Classification systems include GS, Hay, and point-factor models.
• It differs from job evaluation, which focuses on determining the value of a job.
• Best practices include regular audits, manager involvement, and system updates.