HR Guide to the Internet:
Job Evaluation: Methods: Point Method

Point Method A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:
  1. Skill
  2. Responsibilities
  3. Effort
  4. Working Conditions
These factors can then be further defined.
  1. Skill
    1. Experience
    2. Education
    3. Ability
  2. Responsibilities
    1. Fiscal
    2. Supervisory
  3. Effort
    1. Mental
    2. Physical
  4. Working Conditions
    1. Location
    2. Hazards
    3. Extremes in Environment
The point method is an extension of the factor comparison method.

Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.

Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.

Advantages
  • The value of the job is expressed in monetary terms.
  • Can be applied to a wide range of jobs.
  • Can be applied to newly created jobs.
Disadvantages
  • The pay for each factor is based on judgments that are subjective.
  • The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities).

Tips

Factors Use well defined factors.

Biases Examine the Factor points for inherent biases against females and minorities.


Software

HR-Software.net offers free Point Method Job Evaluation Software at: http://www.hr-software.net/cgi/JobEvaluation.cgi
 

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