Learn how the point-factor system works as a quantitative job evaluation method. Understand key compensable factors used in this approach for the SHRM-SCP certification exam.
Table of Contents
Question
HR works with a committee of managers to identify and assign points to pertinent compensable factors for various jobs. These points are totaled to come up with an overall point value for each job. The relative worth of each job can then be compared to the others based on their point values. This is an example of what type of job evaluation?
Answer
Point-factor system. The point-factor system is a form of quantitative evaluation. It is the most commonly used method of job evaluation. The compensable factors chosen for the evaluation must reflect the nature of the job being evaluated. Factors commonly evaluated include skills, responsibilities, effort and physical demands, working conditions, and supervision of others.
Explanation
The scenario described is an example of the point-factor system, which is the most commonly used quantitative job evaluation method. In this approach, a committee of managers works together to:
- Identify pertinent compensable factors for the jobs being evaluated. These factors typically include skills, responsibilities, effort, working conditions, and supervisory duties. The specific factors chosen should reflect the nature and requirements of the jobs.
- Assign a certain number of points to each compensable factor based on its importance and the extent to which it is required for the job.
- Evaluate each job and assign the appropriate number of points for each compensable factor.
- Total up the points for each factor to determine an overall point value for the job.
- Compare the relative worth of different jobs based on their total point values. Jobs with more points are considered more valuable to the organization.
The point-factor system provides a systematic, quantitative way to evaluate and compare jobs across an organization in order to set equitable pay levels. By collaboratively identifying relevant compensable factors and assigning points, this method aims to make job evaluation as objective as possible, although some subjectivity is still involved in choosing the factors and assigning point values. Understanding the point-factor approach is important for HR professionals preparing for the SHRM-SCP certification exam.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.