Job evaluation by point method
1. Overview of point method
A set of compensable factors are identified as determining the worth of jobs.
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 scores and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.
2. Factors of point system:
• Extremes in Environment
3. Advantages of point method
• Highly stable over time
• Perceived as valid by users and employees
• Likely to be reliable among committee that assesses the jobs
• Provides good data to prepare a response to an appeal
4. Disadvantages of point method
• Time, money, and effort required to set up
• Relies heavily on key (benchmark) jobs, so if key jobs and correct pay rates don’t exist, the point method may not be valid.
Job evaluation by Hay system
1. Job evaluation by Hay system
Job evaluation is a tool for determining the ‘size’ of a job, usually in the form of a number of ‘points’ (i.e. a job with 400 points, is a bigger job than one with 200 points).
Hay system was established by Hay Group around 60 years ago and has been developed and used worldwide by numerous organizations, in both the public and private sectors.
2. Factors of Hay system
2.1. Know – How
The level of knowledge, skill and experience (gained through job experience, education and training), which are required to perform the job successfully. This is commensurate with the scale and complexity of the job outcomes (accountability).
• Depth & Range of Know-How
• Planning & Organizing
• Communicating & Influencing (‘Human Relations Skills)
2.2. Problem Solving
The complexity of thinking required, both in the type of problems come across and the extent to which the jobholder has precedent and/or assistance in solving them (applying their Know – How).
Problem Solving include:
• Thinking Environment
• Thinking Challenge
The impact the job has on the organization (i.e. the end result) and the extent to which the jobholder acts autonomously in achieving this.
• Freedom to Act: Which defines the authority in the job to take decisions without referral to others.
• Magnitude: Which indicates the area of the organisation or “magnitude” upon which the job impacts.
• Type of Impact: Which establishes the strength or degree of impact the job has in relation to the chosen magnitude.
3. Process of Hay system
• Any job or role, in whatever organizational context, exists to provide some contribution to the organization in which it works – its Accountability.
• Delivering this Accountability depends on Input of Knowledge, skills and experience – the Know-How.
• Know-How must be applied and used in the Process of addressing the requirements of the job and solving the problems which arise in the job – the Problem Solving.
• Any role can thus be characterized in terms of these three factors of Know-How, Problem Solving and Accountability and the relationship between them.
Search Sample Formats:
Job Evaluation form
Job Title Job code
Department Department Number
What is the primary purpose of the job?
What are the essential functions of the job? % Time Required
What is the most complex function of the job and why?
What are the nonessential functions of the job? % Time Required : –
How much formal education is required to perform this job?
How much similar or related experience is required to perform this job?
Who does this position report to directly? (Position title, not incumbent name)
What are the nature and scope of independent decisions made in this position?
List five most important:
What type of impact does this position have on overall company performance?
How much supervision is received?
When errors occur, how do they effect the company?
What are the consequences if errors are not discovered?
What type of problems is the incumbent in this position likely to encounter?
What are the consequences if problems are not resolved?
What type of decisions is the incumbent in this position responsible to make?
Who does the incumbent in this position most frequently have contact with? List five examples each:
Contacts within company
Contacts outside company
What degree of influence does the incumbent in this position have when contacting others?
What resources is the incumbent in this position responsible for?
What are the consequences if something happens to these resources?
Does this position have responsibility for the supervision of others? [ ] Yes [ ] No
If no, please skip ahead to next section.
Assigns, reviews and checks work of others
Number of direct reports
Number of indirect reports
Please check all that apply.
Regular office conditions [ ]
Exposure to extreme temperatures [ ]
Exposure to high noise levels [ ]
Exposure to fumes [ ]
Exposure to dirt [ ]
Other [ ]
Please list any physical demands required and give examples.
Job Evaluation Questionnaire
Position Title: Level:
Please answer all questions.
1. Describe the major function of your job?
2. List the duties involved in your job function in order of the amount of time spent on each.
3. How often does the major part of your job repeat itself?
Daily 0 Weekly 0 Monthly 0 Quarterly 0 Annually 0
4. Who tells you how to do your job?
Who tells you what to do in your job?
5. Do you regularly direct the work of other people? Yes No
How many do you direct?
Who? (Position titles)
6. List unusual, or hazardous working conditions in your job. How do these conditions affect your job performance?
7. Are your actions related to the safety of others? Yes 0 No 0
8. Check the level which applies to the major duties of your job:
0 occasional lifting average weights (12–50 lbs)
0 frequent lifting average weights
0 occasional lifting heavy weights (over 50 lbs)
0 frequent lifting heavy weights
0 majority of time spent seated
0 majority of time spent on your feet
9. Check any of the following you perform and give a brief example from your major duties:
10. a) What kind of errors can be made in your job?
b) What is the consequence of these errors?
c) Who checks your work?
11. Describe the activities of work-required contacts as indicated in your major duties with the following
b) other staff within your department (list)
c) staff in other departments (list)
d) people outside the University
12. What amount of experience and/or training is required for this job: (circle level)
Months: 3 6 9 12
Years: 2 3 4 5
List specific skills required to do this job.
1. Definition of job evaluation
A process aimed at determining relative differences between jobs within an organization by measuring the size or weight of jobs
Job evaluation is the process of determining how much a job should be paid, balancing two goals
• Internal Equity: Paying different jobs differently, based on what the job entails
• External Competitiveness: Paying satisfactory performers what the market is paying
2. Purpose of job evaluation
Common purposes of job evaluation include:
• Identify “families” of occupations,
• Evaluate “fit” between candidates and job requirements, and
• Develop career paths.
• Identify skills and competencies needed for successful performance,
b. Pay administration
• Define key responsibilities and skills to aid in conducting salary surveys, and
• Assign jobs to a grade structure.
• Develop a grade structure and pay ranges,
c. Internal equity
• Determine whether different jobs have comparable requirements and responsibilities, and
• Ensure compliance with the Equal Pay
3. Factors affecting the job values
a. Market rates
It can be said that a job is worth what the market says it is worth. Retaining people will be very difficult if their rates of pay are not kept in line with those prevailing in the local and national labor markets.
b. Negotiated pay scales
The negotiated rates will be influenced by the market rates, the relative strength of the employers and the unions, the economic situation, legislation, and government anti-inflationary pay regulations.
c. Internal relativities and equity
They should aim to achieve equity in the sense that individuals should feel that their rewards are in balance both with their own output in the shape of effort, skill and contribution, and with the rewards received by others in relation to their output.
4. Methods of job evaluation
Market pricing using going market rates as the primary determinant of a job’s worth and pay.
Ranking ordering jobs based on their relative value to the organization.
Classification method. Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles.
Factor Comparison is a set of compensable factors are identified as determining the worth of jobs.
Point Method is the points rating scheme is based on an analysis of separately defined characteristics or factors which are assumed to be common to all the jobs
The Hay system assesses each job by examining three main elements of job content which are common to all jobs to one extent or another: Know How, Problem Solving, Accountability.