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Job Evaluation: 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	Disadvantages
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.	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

1. Factors Use well defined factors.
2. Biases Examine the Factor points for inherent biases against females and minorities.

Grouping

After ranking, the jobs should be grouped to determine the appropriate salary levels.

Software

InteractivePoint-Method Program (https://hr-software.net/cgi/JobEvaluation.cgi)
Free web-based job evaluation point-method software.