Leading Point mostly uses the Point Method approach to conduct job evaluation assignments, whereas the Point Method is a system whereby points are awarded to each job, based on the extent to which the job possesses compensable factors as compared with an objective standard rather than another job.
This method is preferred because objectivity is built in and because the system can remain in place over a long period of time, even though individual jobs used in the factor comparison method may have changed.
Obviously, after points are totaled, there is a complete ranking of all jobs that becomes the basis for determining job grades and eventually salary scales.
Our Experienced compensation consultants developed and perfected hybrid plans that can be fine tuned to an organization. This generally is not done by the organization itself because the process usually requires a sophisticated compensation administrator. An error in developing the basic plan can be costly in terms of the program's not achieving its goals. In fact, a poorly designed job evaluation system can be counterproductive and further diminish the organization's employee relations and economic health.