Which job evaluation method uses compensable factors to assess the value of a job?

The point factor method is a widely recognized job evaluation approach that quantifies the value of a job by identifying and assessing compensable factors. Compensable factors are specific attributes or criteria that contribute to a job's overall value, such as skills, responsibilities, effort, and working conditions.

In the point factor method, each compensable factor is assigned a certain number of points based on its importance to the organization. Jobs are then evaluated by assigning points to each factor based on the degree to which they fulfill those criteria. The points are totaled to provide a comprehensive view of the job's value relative to others within the organization.

This method is particularly effective because it provides a systematic and objective way to determine compensation, ensuring that jobs with similar demands and responsibilities are valued similarly. It allows organizations to maintain internal equity and fairness in compensation practices while also aligning with external market conditions.

In contrast, the job classification method categorizes jobs into predefined groups based on general characteristics rather than detailed compensable factors. The Position Analysis Questionnaire is a structured tool for gathering job information but does not evaluate jobs in the same quantitative way as the point factor method. The Hay Group Guide Chart also employs a similar factor-based approach, but it uniquely categorizes jobs based on different methodologies