point factor method

The point factor method is a commonly used job evaluation technique that assesses the value of different positions within an organization. It involves assigning pre-defined factors relevant to each role, such as skills, responsibilities, effort, and working conditions.

Each factor is then further divided into different levels or degrees of complexity (e.g., “basic computer skills” vs. “advanced computer skills” for the “skills” factor). The different factors are weighted according to their importance to the organization. For example, “experience” might be weighted more than “travel requirements.”

Jobs are evaluated based on the points assigned to each level within a factor. The total points for each job are used to determine its overall worth and placement within the organization’s pay structure.