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Factor Point Method for Job Evaluation

The Factor Point Method for Job Evaluation assesses job positions based on common characteristics, or factors, that vary in intensity and importance across roles. This method is recognized for its objectivity and is endorsed by the International Labour Organization for promoting equality in job evaluation. The process involves selecting factors, weighting them, establishing grades, preparing a valuation manual, conducting job evaluations, and finally creating a salary structure based on the evaluation results.

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0% found this document useful (0 votes)
16 views5 pages

Factor Point Method for Job Evaluation

The Factor Point Method for Job Evaluation assesses job positions based on common characteristics, or factors, that vary in intensity and importance across roles. This method is recognized for its objectivity and is endorsed by the International Labour Organization for promoting equality in job evaluation. The process involves selecting factors, weighting them, establishing grades, preparing a valuation manual, conducting job evaluations, and finally creating a salary structure based on the evaluation results.

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Job Evaluation: Factor Point Method

In Job Evaluation, the Points by Factor method assumes


that there are common characteristics in each homogeneous work group, and
Each of them occurs with different intensity in each of the positions.
In addition, each feature is allowed a different level of importance. The system
punctuation defines these characteristics, called factors, and the different
intensities, called degrees. In the assessment of job positions, it is about
assign to each position, in each factor, the degree that fits the requirements of
that one.

The Factor Point method is the most applied due to its properties of
objectivity. In fact, this system is evaluated as the most suitable by the
International Labour Organization (ILO) which also considers that the
point method is the most appropriate for job evaluation in the
scope of equality. This is recognized by the ILO in the guide 'Promotion of Equality'.
salary through the non-sexist evaluation of jobs
Logic of the Point by Factor Method
It is assumed that there are common characteristics in each homogeneous group.
de trabajo. Y cada una de ellas se da con distinta intensidad en cada uno de los
positions. In addition, each feature has a different level of importance.
The scoring system defines these characteristics, called factors (usually
divided into subfactors), and the different intensities, called degrees. In the
valuation involves assigning to each position, in each factor/subfactor, the degree to
that meets the requirements of the latter.

Not all factors and subfactors have the same importance. The value that
This importance is represented by what we call weighting and is expressed in figures.
set of factors, sub-factors, degrees, and weighting constitutes the manual of
valuation. This manual is the measuring instrument to be used. Determined in
each position the corresponding degrees, equipped with their score, we will be able to
with a simple addition to have the representative value of the position.

Job Evaluation: Methodology


The job evaluation method of Points by Factor is based on the
analysis and job description. This method consists of the following stages:
1. Selection of job evaluation factors.
All jobs of a homogeneous group have certain characteristics or factors.
common. But if we were to consider human work in all its variety,
Certainly, we would obtain a long relationship. Therefore, it is not about, when
we intend to determine the factors, to obtain a comprehensive list, but rather to deduce
some factors that, being common to the positions under study, serve us to
establish logical differences between them.

Studies conducted show that the application of many is unnecessary.


factors. Statistical analyses show that four groups of factors can
be sufficient. In fact, and according to the aforementioned ILO Guide, these
factors to consider for any organization, regardless of the sector
in what I operate, they are:

Grades.
Efforts.
Responsibilities.
Working conditions

2. Weighting of the factors and subfactors.


The weighting of factors is done according to their relative importance, since
that these are not identical in their contribution to job performance.

Weighting consists of assigning relative weight to the factors in the


comparisons between the positions. The percentage weight with which is usually used
each factor will be considered in the job evaluation. This
percentage will have a translation to points.

3. Establishment of grades.
Having defined each factor, it is necessary to determine the number of degrees in which we can ...

divide it and delimit them as precisely as possible. The number of degrees


it usually ranges between 3 and 10, but as a general rule, they should not exceed 6.
Normally, we achieve a good division with 5 degrees.
The levels are defined in such a way that each one reflects a bit more difficulty.
the importance that the previous one. In such a way that that expressed by the first
matches that of the positions that are of lesser importance. And that expressed by
the last one, with the most important positions, thus encompassing among all the
complete range of the factor being studied.

A simple example of the establishment of grades is presented, with a character


illustrative and generically, related to the factor 'Experience', would be:

A second example presents the subfactor 'Impact' (included in the factor


Responsibility used in the evaluation of positions in the management structure
from a town hall.
4. Preparation of the Valuation Manual.

The valuation manual is the instrument that will be used to establish the
importance of each job position in relation to the others.

This manual contains the instructions for its application and the descriptions of
the factors and degrees. Its application will result in a score for each position
valued work. This score will be the reference for assigning to the positions
the salary classes. It is, ultimately, the basis on which the remuneration will be paid
positions.

In the Spanish Public Administration, its result is applied to determination


of the Specific Supplement, in the case of civil servants.

5. Job Evaluation.

It is possible to move directly to the final evaluation of the positions by


an appraisal commission established for this purpose, or by an independent consultant
that will evaluate the positions and present the proposal to the Management
from the organization or competent body in the case of public administration.
In public administrations, the result of the job evaluation of
work will be the basis on which the Job Relationship is made up of
Work.

6. Salary Structure.
With the points values for each job position, according to the results of the
job evaluation, it is possible to establish the correspondence between the
score obtained by each position and its economic remuneration.

For this analysis, the organization’s salary relationship is used. With these
Values can be plotted in a graph that shows the relationship between points and salaries.
currently subscribed. It is also possible to trace the midpoint line, that is, the line
of salary trends. This will inform us about the current salary structure. Thus
mismo, es posible conocer la correlación entre salarios y puntos y el grado de
consistency of the different positions with the current salary structure.

However, salary administration is concerned with structures.


salaries, and not by the salaries taken in isolation. That is why it is necessary
transform the trend line into a salary range. Or in other words,
build salary categories based on the salary line. These
categories are obtained by applying a positive and negative distancing from the line
salary.

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