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.