How do you measure and improve the effectiveness and fairness of the point factor method?

1 Choose relevant factors

One of the key steps in the point factor method is to identify and select the factors that reflect the essential aspects of the jobs you are evaluating. These factors should be relevant, objective, measurable, and consistent across all jobs. You should also avoid using too many or too few factors, as this can affect the accuracy and reliability of the results. A common practice is to use four to six factors, such as education, experience, complexity, impact, and autonomy.

2 Define clear levels

Another important step is to define the levels or degrees for each factor, and assign them point values based on a predetermined scale. The levels should reflect the differences in the degree of difficulty, responsibility, or skill required for each factor. For example, for the factor of education, you might have four levels: high school diploma, associate degree, bachelor degree, and master degree. The point values should be proportional to the levels, and reflect the relative importance of each factor. For example, you might assign 50 points to each level of education, but 100 points to each level of impact.

3 Apply consistent criteria

To ensure fairness and validity, you should apply the same criteria and standards to all jobs when evaluating them using the point factor method. You should use reliable and updated sources of information, such as job descriptions, performance appraisals, and interviews, to assess each factor and level. You should also involve multiple raters or evaluators, and seek their input and feedback throughout the process. You should avoid bias, subjectivity, or personal preferences, and focus on the actual requirements and characteristics of the jobs.

4 Review and validate the results

Once you have calculated the total points for each job, you should review and validate the results before using them for decision making. You should check for any errors, inconsistencies, or anomalies in the data, and make adjustments if necessary. You should also compare the results with other methods or sources of job evaluation, such as market surveys, benchmarking, or ranking, to verify their accuracy and alignment. You should also communicate the results to the relevant stakeholders, such as managers, employees, and unions, and address any questions or concerns they might have.

5 Monitor and update the system

The point factor method is not a one-time exercise, but a dynamic and ongoing system that needs to be monitored and updated regularly. You should review the factors, levels, and point values periodically, and adjust them if there are any changes in the jobs, the organization, or the market. You should also evaluate the outcomes and impacts of the point factor method on your compensation, performance, and talent management strategies, and identify any areas for improvement or enhancement.

The point factor method is a powerful and flexible tool for job evaluation, but it also requires careful planning, implementation, and maintenance. By following these tips and best practices, you can measure and improve the effectiveness and fairness of the point factor method, and ensure that it supports your organizational goals and values.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?