How do I rank jobs to make sure there is internal equity in my compensation administration program?
Many employers use a system such as BLR’s nine-factor job evaluation tool to rank jobs on the basis of skill, education, experience, and duties. By assigning numerical scores to the fundamental elements of each job, the point-factor system yields a neatly tiered arrangement of jobs, with each tier representing a group of jobs — typically, vastly different in content that pay roughly the same rate. Point-factor job-pricing makes it possible for anyone to demonstrate objectively just what criteria were applied to the job and compensation analysis and how the point scores were calculated, lending considerable credibility to the final result. Moreover, the fact that all jobs are subjected to the same analysis ensures a high degree of internal equity and fosters a perception among employees that the system is fair. Of the many systems of point-factor analysis that have come into fashion over the years, the most durable has been that used by the federal government to classify its civilian w
