What method is utilized to allocate points to jobs in relation to their value to the organization?

The point factor approach is utilized to allocate points to jobs based on their value to the organization by assessing various compensable factors. This method involves identifying key factors such as skill, effort, responsibility, and working conditions that define the job's overall worth. Each factor is assigned a point value that reflects its importance to the organization. Jobs are then evaluated based on these factors, and the accumulated points help determine the relative value or worth of each job within the organization.

This structured approach allows organizations to create a systematic and objective framework for evaluating job roles, leading to fair and equitable compensation decisions. It also helps in maintaining internal equity, ensuring that jobs of similar value receive comparable pay. The point factor approach is particularly useful in establishing a consistent methodology for comparing a wide variety of jobs within a comprehensive job evaluation program.