Point-Factor Method is a strategy for valuing jobs based on elements deemed important to the organization's survival. Identifying these elements require an internal business needs analysis and a definition of how success will be measured through key factors inherently contained in jobs within the organization.
These elements represent key factors to which points are attached. UMGHR utilizes nine factors (as shown in the table above) in putting values to jobs. We also use this method for the following purposes:
In identifying key factors (a.k.a. compensable factors) UMGHR typically disucss with clients the current HR state, along with extensive reviews of the clients' compensation structures, philosophies, and challenges currently faced.
Because of the changing landscapes in talent competition particularly for jobs in the STEM category, we see the need for organizations to better assess the value of jobs internally while at the same time take into consideration the future progression of these jobs as they re-invent themselves with the changing technology, new discoveries and new regulations - elements that are primarily externally driven.
A point-factor system that is objective, scientific, and justifiable can help delineate critical knowledge, skills, and abilities from the plethora of information that are often presented by the wholesale method of simply comparing job titles and job description summaries.
Last but not least, the point-factor method does not evaluate the incumbent or the person holding the job. Instead it evaluates the value of the job itself internally. It facilitates the process of valuing jobs internally to maintain equity within the walls of the organization.
Ulibarri-Mason Global HR is founded in 1994 by a Cognitive Psychologist from the University of California Berkeley. The firm was renamed in 2004 to expand the service offerings. The expansion included a focus on compensation and job classification.