THE FLEX-POINT ^TM METHOD OF JOB EVALUATION

A primary purpose of FLEX-POINT ^TM is determining the relative value of jobs to the organization. Determining relative job value is important in developing a compensation program because it addresses the need for internal equity; that is, it is important that the compensation program recognize differences between jobs on the basis of a number of factors. Internal equity considerations are then matched against the need for external parity, measured through consideration and integration of comparative compensation information collected from surveys and published sources.

The results of job evaluation are placement of all jobs into an appropriate rank order of relative value to the organization and the estimation of the degree of difference between jobs. The procedure provides a means for systematically judging internal responsibility relationships among the various jobs (not the incumbents) within the organizational hierarchy. By developing a means of systematically appraising the value of each job in relation to all other jobs on a common basis, fair and equitable internal relationships among the positions can be determined and maintained.

FLEX-POINT ^TM

Our experience in performing job evaluation studies suggests that one appropriate job evaluation approach is the use of FLEX-POINT ^TM With FLEX-POINT ^TM, compensable factors appropriate to the goals and objectives of the organization are identified, and weighted relative to each other in order of importance. Specific degrees within each factor are then established and point values for each degree are assigned within the appropriate range of the factor. Rating is then done by deciding which degree definition best fits the job being considered, and the corresponding point value is selected. When all factors have been rated, the sum of the point values represents a numerical index of the value of the job in question. Job grades are then assigned to the job according to the points accumulated. The higher the point total, the higher the grade assigned. The point values are considered in constructing the compensating structure, and are then used for future evaluations to place a new or changed job into an appropriate job grade.

Certain features are evident in FLEX-POINT ^TM. It is easier and more objective to evaluate a limited number of relatively narrow compensable factors independently than to attempt an overall evaluation of the total job. The use of multiple factors also allows more facets of job worth to be represented, thus achieving greater equity. By using predetermined standards against which all jobs are compared, there is greater objectivity, a feature which appeals to employees and improves acceptance of the system. In addition, the factors and their weighting have stability which lends further credibility to the system.

FLEX-POINT ^TM permits a variety of diverse jobs to be compared to a stable standard. New jobs are easily integrated into the system. The ease with which FLEX-POINT^TM can be administered allows it to be maintained by the organization with moderate training and experience.

Factors included in FLEX-POINT ^TM

FLEX-POINT ^TM includes factors which have been demonstrated to apply to a wide variety of jobs throughout most organizations. It has been used to effectively evaluate management and non management jobs, as well as technical, professional and administrative jobs.

It includes the following broad compensable factors:

1. Education and training
2. Contact with others
3. Impact of job
4. Job complexity
5. Working conditions
6. Supervision exercised

For most organizations, FLEX-POINT ^TM can be used in its standard format. In certain situations, the organization may wish to modify the factors included or their weighting.

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