NRC: Job grades, job evaluation, and Jobscore.
Home   previous page   next page

Page 10

1.2.3 Point Method.

The point method is an analytical technique that breaks down each job into a number of factors, for example: knowledge, problem solving, and accountability. These factors are frequently broken down further into sub-factors. For example, knowledge can be divided into, education, interpersonal skills and resource management skills. These sub-factors are further divided into degrees or levels. Points are awarded to a job based on the level of skill required at each factor. The combined points decide a job's place in the ranking order. A points rating scheme has the following advantages:

  • It provides a ranking of jobs that also provides a quantitative measure of the differences between jobs.
  • It is generally less subjective than non-analytical methods.

The disadvantages of points rating are that it can be time consuming to introduce and complex and costly to undertake and maintain. It can also imply a level of precision that is not justified.

Jobscore is a Point Method.

1.2.3a Tailor-made or 'off the shelf' job evaluation systems.

A prime consideration in deciding which analytical job evaluation scheme to select lies in the choice of factors and weightings, i.e. which aspects of a job are measured, and what overall weighting is given to each aspect.

The benefit of proprietary, off the shelf systems is that they normally have been well tested. Many are linked to market salary information. There is also a saving in time as opposed to developing an in-house system.

The benefit of a tailor-made scheme is that the factors and definitions can be aligned specifically to the jobs to be evaluated. However, developing a job evaluation system is a highly specialised activity and the organisation may not have the skills necessary to produce a sufficiently robust system. If an organisation were to develop an in-house system then quite likely external, expert assistance would be required. Altogether this can work out to be a very expensive option.

There is also the option of modifying a proprietary system to better suit a particular organisation or industry. As a minimum, factor level descriptions can be modified to reflect the organisation's job types.

Jobscore factor level descriptions can be customised, but not its underlying structure.
Amending its underlying structure could affect its universal applicability.

Home   previous page   next page

Copyright 2004 National Remuneration Centre, Melbourne.