by Joseph J. Martocchio
The point method evaluates jobs by comparing compensable factors – elements of job content like skill, effort or responsibility that can be used to assess a job’s value to the organization. Each factor is defined and assigned a range of points based on the factor’s relative importance to the organization. Compensable factors are weighted to represent the relative significance of each factor to the job.
In this guide, learn about:
- Step 1: Select benchmark jobs
- Step 2: Choose compensable factors based on benchmark jobs
- Step 3: Define factor degrees
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About the author
Joseph J. Martocchio
Professor Emeritus and College Textbook Author
Joseph is a professor emeritus of human resource management, University of Illinois at Urbana-Champaign. He currently serves as an adjunct faculty member at Penn State, where he teaches online master’s and undergraduate courses in employee compensation, employee benefits and total reward systems. He also serves as an adjunct faculty member in the Bauer College of Business, University of Houston, where he teaches undergraduate and graduate courses in compensation and benefits.
Professor Martocchio’s research interests focus on various HR issues, including compensation and benefits; training; absenteeism; and generational dynamics in the workplace. Martocchio has published research widely in scholarly journals such as the Academy of Management Review, Journal of Applied Psychology, Journal of Management and Personnel Psychology. Besides writing scholarly articles, he has written three textbooks in the fields of compensation, employee benefits and human resource management: Strategic Compensation: A Human Resource Management Approach (10th edition, Pearson Higher Education), Employee Benefits: A Primer for Human Resource Professionals (7th edition, McGraw-Hill) and Human Resource Management (15th edition, Pearson Higher Education).