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Point-Factor Method

Point–Factor Job Evaluation Method

Point-factor job evaluation is a quantitative, analytical approach to job evaluation. It assesses jobs using predefined factors and levels, assigning points based on how closely a job’s requirements match each factor-level definition.

Each job is compared against these definitions, and points are awarded according to the relevant level.

How Point–Factor Job Evaluation Works

The points assigned across all factors are added together to produce a total job score. This score can then be used to:

Rank jobs directly (job ranking), or

Translate scores into a grade structure (job grading)

In simple terms, the value of a job is determined by the requirements of its core duties, tasks and overall work demands — not by the individual performing the role.

Point–Factor Job Ranking Explained

In point-factor job ranking:

The job itself is evaluated, not the job holder

A set of standardised, generalised factors is applied

Each factor consists of multiple levels, each with assigned points

Evaluators compare job requirements to factor-level descriptions to determine the best fit. The total number of points represents the relative value of the job, allowing roles to be placed in rank order.

Typical Compensable Factors

Most point-factor systems include the following broad categories:

Skill / Qualifications

Responsibility

Effort

Working Conditions (less common in modern systems)

Merits and Limitations of Point–Factor Job Ranking

Objectivity and Judgement

While point-factor systems aim to improve objectivity, complete precision is difficult to achieve. Challenges include:

Defining factor levels clearly and consistently

Determining which job information is most relevant

Some systems — particularly those rooted in early “scientific management” approaches — imply a false sense of objectivity by assigning quantified jumps between levels (e.g. a 20% increase in communication requirements) without clearly explaining what those jumps represent.

Judgement is still required when scoring jobs. However, as evaluators gain experience with the factor plan and job documentation, consistency and accuracy typically improve.

Key Advantages

Greater objectivity and consistency than non-analytical methods

Clear, structured framework for evaluating jobs

Suitable as a defence in equal value and equal pay claims, provided the system is based on proper job analysis and is free from gender bias

Key Challenges

Can be complex to design and maintain

Scoring still depends on human judgement

Schemes can be difficult to amend as organisational needs change

Despite these limitations, point-factor methods remain the most widely used analytical job evaluation approach.

Historical Context and Modern Developments

One of the most well-known examples is the International Labour Organization’s Scheme of Geneva (1950) — now largely outdated.

A more modern, weighted factor plan was published by the ILO in its 2009 brochure on gender-neutral job evaluation.

Factors

Qualifications
Job Knowledge
Communications
Physical Skills
Effort
Emotional effort
Mental effort
Physical effort
Responsibility
For people
For products
Financial
Working Conditions
Physical environment
Psychological climate
Total

Number of Points

320
120
100
100
190
50
80
60
390
120
120
150
100
50
50
1000 Points

Weighting

32%
12%
10%
10%
19%
5%
8%
6%
39%
12%
12%
15%
10%
5%
5%
100%

Example: Weighted Factor Plan

Total: 1,000 points (100%)

Qualifications – 320 points (32%)

Job knowledge

Communication

Physical skills

Responsibility – 390 points (39%)

Financial responsibility

Responsibility for products

Responsibility for people

Effort – 190 points (19%)

Physical effort

Mental effort

Emotional effort

Working Conditions – 100 points (10%)

Psychological climate

Physical environment

Practical Considerations

Detailed factor-level definitions are typically provided in commercial job evaluation systems. However, these systems are often proprietary and can be difficult to interpret without specialist expertise, frequently requiring consultant support.