4 Steps for Creating a Point Value System
The Point Formula
Decide the total number of points for your system. The majority of systems use 1,000 points to make calculations easier. Therefore if a job class was rated at the top level for every sub-factor in the system, the total points for that job class would be 1,000.
Step 1: Determine the percentage for each factor
Take the percentage for each factor and multiply it by 10 to determine the points assigned to each factor.
Example: If skill is weighted at 35% of the system, then the total points would be 350 (10 × 35 = 350 points)
Step 2: Distribute the percentage allotted for each across your sub-factors
Take the percentage for each sub-factor and multiply it by 10 to determine the points assigned to each sub-factor.
Example: If communication skill is weighted at 10% of the system, then the total points would be 100 (10 × 10 = 100 points).
Step 3: Determine the total points for each level
Divide the total number of points assigned to each sub-factor by the number of its levels.
Example: If communication skill has 100 points, divide 100 by the number of levels (4). Each level is assigned 25 points.
Level 1 = 25 points
Level 2 = 50 points
Level 3 = 75 points
Level 4 = 100 points
If the sub-factor had 5 levels, then the total points for each level would be 20 points.
Step 4: Shade up or down when you need more flexibility
This system provides flexibility by allowing levels to be shaded up or down. Use the “+” or “−” factor to rate job classes that do not fit the definition of the sub-factor’s level.
Example: if a job class fits best in Level 2 under the Communication skills sub-factor, but on occasion the person doing this job has to provide explanations on complex material, the job class may be scored properly at Level 2+.
To calculate points for the “+” or “−” factor, divide the number of points allotted to Level 1 by 3, and add or subtract that amount.
Example: If each level of the Communication Skills has 25 points, divide 25 by 3.
The “+” or “−” factor is 8.3 points. Add or subtract that amount from the appropriate level.
Note: You will need to round off your numbers.
Example: Space Toy Co.
Space Toy Co. (STC) created a weighting formula by following the four steps outlined below.
Step 1: Factor Formula
Space Toy Co. divided 100% between the factors of Skill, Effort, Responsibility and Working Conditions.
Chart 1: Factor Formula (100% divided between 4 factors)
Chart 2: Subfactor Formula (100% divided between 10 subfactors)
Step 3: Levels Formula
The Committee decided on the number of levels for each subfactor, then determined the points for each level by dividing the total number of points assigned to each subfactor by the number of levels. For example, the 120 points given to Mental Effort was divided by its number of levels (5). Each level was then assigned 24 points. For example, 24 points x 2 levels = 48 points, or 24 points x 5 levels = 120 points. The result of the calculation, from Level 1 to 5 is: 24, 48, 72, 96, and 120 points, as shown below.
Chart 3: Levels Formula (percentages divided between 4 to 6 levels)
Step 4: Expanded Formula
The Job Evaluation Committee tested the above formula and found that some job classes did not fit comfortably in some sub-factors’ levels but fell somewhere in between two levels. For example, if a job class fits best in Level 2 under the Interpersonal Skills/Contacts subfactor, but on occasion the person doing the job has to provide explanations on complex material, the job class may be scored properly at Level 2 +. Space Toy Co.’s Committee elected to expand their formula using ” + ” and ” – ” shadings to achieve a more exact rating for these job classes.
Shading a formula with a ” + ” and ” – ” factor
To calculate points for the ” + “or ” – ” factor, divide the number of points allotted to each level by 3, and add or subtract that amount.
If each level of the Communications skills subfactor had 25 points, divide 25 by 3. The ” + ” or ” – ” factor is 8.3 points. Add or subtract that amount from the appropriate level. You will need to round off your numbers.
The final weighting formula calculations for Space Toy Co.’s head office job classes is shown in Chart 4 below.
Chart 4: Expanded Formula
Point Values with ” + ” and ” – “Shadings
The source for the above is The Pay Equity Committee, Ontario, Canada website.