Step-by-Step Guide to Job Evaluation and Salary Structure Design

Creating a fair and competitive salary structure is essential for attracting talent, maintaining equity, and controlling compensation costs. This comprehensive guide walks you through the entire process with a practical example.

What is Job Evaluation?

Job evaluation is a systematic process of determining the relative worth of jobs within an organization. It helps establish internal equity by comparing jobs based on their responsibilities, required skills, and contributions to organizational goals—not on the people performing them.

Why You Need a Structured Approach

Without a formal salary structure, organizations face:

• Pay inequities leading to employee dissatisfaction.

• Difficulty justifying compensation decisions

• Challenges in recruiting competitively

• Potential legal compliance issues

• Budget overruns and inconsistent pay practices

Steps in Conducting Job Evaluation and Salary Structure Design

Step 1: Prepare for Job Evaluation

Action Items:

• Form a compensation committee (HR, finance, department heads)

• Communicate the project to stakeholders.

• Select your evaluation method.

• Gather existing job descriptions.

Timeline: 2-3 weeks

The committee should include people who understand various roles across the organization. Their diverse perspectives ensure fair evaluations.

Step 2: Update or Create Job Descriptions

What to Include:

• Job title and department

• Reporting relationships

• Primary responsibilities and duties

• Required qualifications (education, experience, certifications)

• Key competencies and skills

• Working conditions and physical requirements

Best Practice: Use consistent formatting and focus on the job, not the incumbent. Interview managers and employees to ensure accuracy.

Step 3: Choose Your Job Evaluation Method

Selecting the proper job evaluation method is critical to your structure's success. Each approach has distinct advantages, limitations, and ideal use cases. Here's a detailed examination of the four most common methods:

Method 1: Point Factor Method (Most Widely Used)

Overview: The point factor method is the most sophisticated and defensible approach to job evaluation. It breaks down jobs into compensable factors (skill, responsibility, effort, working conditions), assigns point values to different levels of each factor, and totals the points to determine a job's relative worth.

How It Works:

1. Select Compensable Factors - Identify 4-8 factors that drive value in your organization.

2. Define Factor Degrees - Create 3-6 levels for each factor with clear descriptions.

3. Assign Point Values - Distribute total available points across factors and degrees

4. Weight Factors - Allocate more points to more important factors

5. Evaluate Jobs - Score each job on every factor

6. Total Points - Sum all factor scores to get the job's total point value

Detailed Example:

Let's say you're evaluating a "Marketing Manager" position with these four factors:

Factor 1: Education & Experience (Max 250 points - 25% weight)

• Degree 1 (50 pts): High school + 2 years

• Degree 2 (100 pts): Associate's + 4 years

• Degree 3 (150 pts): Bachelor's + 5 years ← Marketing Manager scores here

• Degree 4 (200 pts): Bachelor's + 8 years or Master's + 5 years

• Degree 5 (250 pts): Master's + 10 years or PhD

Factor 2: Supervisory Responsibility (Max 200 points - 20% weight)

• Degree 1 (40 pts): No supervision

• Degree 2 (80 pts): Supervises 1-2 employees

• Degree 3 (120 pts): Supervises 3-7 employees ← Marketing Manager scores here

• Degree 4 (160 pts): Supervises 8-15 or manages managers

• Degree 5 (200 pts): Supervises 15+ or multiple management layers

Factor 3: Decision-Making Impact (Max 300 points - 30% weight)

• Degree 1 (60 pts): Follows procedures, minimal discretion

• Degree 2 (120 pts): Some independent decisions within guidelines

• Degree 3 (180 pts): Significant decisions affecting the department ← Marketing Manager scores here

• Degree 4 (240 pts): Major decisions affecting multiple departments

• Degree 5 (300 pts): Strategic decisions affecting the entire organization

Factor 4: Budget Responsibility (Max 250 points - 25% weight)

• Degree 1 (50 pts): No budget responsibility

• Degree 2 (100 pts): Influences spending up to $50K

• Degree 3 (150 pts): Manages budget $50K-$250 ← Marketing Manager scores here

• Degree 4 (200 pts): Manages budget $250K-$1M

• Degree 5 (250 pts): Manages budget over $1M

Marketing Manager Total: 150 + 120 + 180 + 150 = 600 points

Advantages:

• Most objective and defensible - Reduces bias and provides a clear rationale for pay differences

• Legally defensible - Well-documented methodology helps with equal pay compliance

• Flexible and customizable - Can tailor factors to your organization's values

• Consistent across diverse jobs - Works for comparing vastly different positions

• Transparent - Easy to explain how job values were determined

• Supports internal equity - Creates clear job hierarchies

Disadvantages:

• Time-intensive - Initial setup takes 2-4 months for a comprehensive system

• Requires expertise - Need trained evaluators who understand the methodology

• Can be complex - May be overwhelming for small organizations

• Maintenance required - Factors may need updating as business changes

• Potential for over-engineering - Risk of making it too complicated

Best For:

• Medium to large organizations (100+ employees)

• Companies with diverse job families (technical, sales, operations, admin)

• Organizations needing legal defensibility

• Companies committed to internal equity

• Unionized environments where transparency is critical

Method 2: Job Ranking Method (Simplest Approach)

Overview: Job ranking is the most straightforward evaluation method. Evaluators rank all jobs from most to least valuable based on their overall contribution to the organization. Think of it as creating a simple list from "most important" to "least important."

How It Works:

1. Gather Job Information - Collect descriptions for all positions

2. Select Evaluators - Typically, senior management and HR

3. Rank Jobs - Order jobs from highest to lowest value

4. Resolve Disagreements - Discuss until consensus is reached

5. Group into Grades - Cluster similarly-ranked jobs together

6. Assign Salary Ranges - Apply market data to groups

Detailed Example:

A 40-person consulting firm ranks its positions:

Rank 1-5 (Executive Level):

1. Managing Partner

2. Chief Operating Officer

3. Chief Financial Officer

4. Senior Partner

5. Partner

Rank 6-12 (Senior Professional): 6. Senior Consultant 7. Consultant Manager 8. Senior Project Manager 9. HR Director 10. Finance Manager 11. Marketing Manager 12. IT Manager

Rank 13-25 (Professional Level): 13. Consultant 14. Project Manager 15. Senior Analyst 16. HR Generalist 17. Senior Accountant 18. Marketing Specialist (and so on...)

Rank 26-40 (Support Level): 26-35. Various administrative and support roles 36-40. Entry-level positions

They then group these into six salary grades based on natural clustering:

1. Grade 6: Ranks 1-5

2. Grade 5: Ranks 6-12

3. Grade 4: Ranks 13-18

4. Grade 3: Ranks 19-25

5. Grade 2: Ranks 26-35

6. Grade 1: Ranks 36-40

Variations:

Paired Comparison Method: Compare each job to every other job (Job A vs. Job B, Job A vs. Job C, etc.). The job that "wins" more comparisons ranks higher. Works well with up to 20 jobs.

Example with five jobs:

• Job A beats Jobs B, C, D, E = 4 points (Rank #1)

• Job B beats Jobs C, E = 2 points (Rank #2)

• Job C beats Job E = 1 point (Rank #3)

• Job D beats Jobs C, E = 2 points (Rank #2 tied)

• Job E beats none = 0 points (Rank #5)

Alternation Ranking: Start by identifying the highest-value job, then the lowest. Next, identify the second-highest, then the second-lowest, and continue alternating until all jobs are ranked.

Advantages:

• Simple and fast - Can be completed in days, not months

• Low cost - Requires minimal resources or external expertise

• Easy to understand - Everyone grasps the concept of ranking

• No complex calculations - Just discussion and consensus

• Good starting point - Can transition to more sophisticated methods later

• Works with limited data - Doesn't need detailed factor analysis

Disadvantages:

• Highly subjective - Based on opinions, not objective criteria

• Difficult to justify - Hard to explain why Job A ranks higher than Job B

• Not legally defensible - Vulnerable to discrimination challenges

• Poor for large organizations - Becomes unwieldy with 50+ jobs

• Ranking disagreements - Different evaluators may have vastly different views

• Ignores job differences - Doesn't show how much more valuable one job is than another

• Perpetuates biases - May reflect existing prejudices about "women's work" or other factors

Best For:

• Small organizations (under 50 employees)

• Startups needing a quick solution

• Organizations with minimal resources

• Homogeneous workforce (similar types of jobs)

• Short-term solution before implementing a more robust system

• Companies where jobs are well-understood by leadership

Cost & Time Investment:

• Setup: $0-$5,000 (can be done internally)

• Timeline: 1-3 weeks

• Maintenance: 10-20 hours annually

Warning: This method is rarely used alone in modern compensation practice due to its subjectivity and legal vulnerabilities. Consider it a stepping stone, not a destination.

Method 3: Job Classification Method (Grade Description Approach)

Overview: The classification method creates predefined grade levels with detailed descriptions, then assigns each job to the grade that best matches its requirements. It's similar to "sorting" jobs into buckets based on their characteristics. The U.S. Federal Government's GS (General Schedule) system is the most famous example.

How It Works:

1. Define Number of Grades - Typically 8-15 levels based on organizational hierarchy.

2. Write Grade Descriptions - Create detailed narratives describing typical jobs at each level

3. Establish Grade Factors - Include skill, responsibility, complexity, and supervision for each grade

4. Evaluate Jobs - Read each job description and match it to the best-fitting grade

5. Review and Adjust - Ensure logical placement across the organization.

6. Assign Salary Ranges - Apply market data to each grade

Detailed Example:

A hospital system creates eight grades with these descriptions:

Grade 1 - Entry Level Support Typical Jobs: Housekeeper, Food Service Worker, Transporter

• Education: High school diploma or equivalent

• Experience: 0-1 year, on-the-job training provided

• Supervision Received: Close, direct supervision with detailed instructions

• Decision Making: Follows established procedures, minimal discretion

• Responsibility: Individual tasks with immediate impact

• Typical Duties: Routine, repetitive work requiring basic skills

Grade 3 - Skilled Support Typical Jobs: Medical Records Clerk, Patient Scheduling Coordinator, Pharmacy Technician

• Education: High school diploma plus specialized training or certification

• Experience: 2-3 years related experience

• Supervision Received: General supervision, works within established procedures

• Decision Making: Some independent judgment within guidelines

• Responsibility: Affects department operations, interacts with patients/visitors

• Typical Duties: Semi-routine work requiring specialized knowledge

Grade 5 - Professional Typical Jobs: Registered Nurse, Medical Lab Technologist, Physical Therapist

• Education: Bachelor's degree and professional license/certification required

• Experience: 3-5 years of clinical or professional experience

• Supervision Received: Works independently with periodic review

• Decision Making: Substantial independent judgment, clinical decision-making

• Responsibility: Direct impact on patient care and outcomes

• Typical Duties: Complex professional work requiring specialized expertise

Grade 7 - Senior Professional/Manager Typical Jobs: Nurse Manager, Department Supervisor, Senior Therapist

• Education: Bachelor's degree required, Master's preferred

• Experience: 7-10 years with demonstrated leadership

• Supervision Received: Minimal supervision, self-directed

• Decision Making: Significant authority within department, policy interpretation

• Responsibility: Manages staff (5-15 people) and/or major programs

• Typical Duties: Complex management or advanced specialized work

Grade 8 - Executive Typical Jobs: Chief Nursing Officer, Director of Operations, VP of Patient Services

• Education: Master's degree or equivalent required

• Experience: 10+ years with extensive leadership experience

• Supervision Received: Works under broad objectives and goals

• Decision Making: Strategic decisions affecting multiple departments or the entire organization

• Responsibility: Senior leadership, large budgets ($5M+), manages managers

• Typical Duties: Strategic planning, organizational leadership, executive decision-making

Evaluation Process:

When evaluating a "Clinical Nurse Specialist" position:

1. Review the job description

2. Compare to grade descriptions

3. Note: Requires a Master's degree, 5 years of experience, makes clinical decisions, consults across departments

4. Too senior for Grade 5 (typical RN level)

5. Fits well with the Grade 7 description

6. Assign to Grade 7

Advantages:

• Relatively quick - Faster than point factor once grades are defined

• Easy to apply - Match jobs to descriptions

• Good for consistent job families - Works well when you have many similar positions

• Clear career paths - Employees can see progression through grades

• Easier communication - Employees understand "Grade 5" descriptions

• Standardized - Promotes consistency in job evaluation

• Proven track record - Used successfully by government and large institutions

Disadvantages:

• Rigid and inflexible - Hard to accommodate unique or hybrid roles

• Grade creep risk - Pressure to slot jobs into higher grades over time

• Doesn't show fine distinctions - Grade 5 may include jobs worth $50K-$75K

• Initial setup challenging - Writing clear, comprehensive grade descriptions is difficult

• Can limit innovation - New roles may not fit existing classifications

• May not reflect market - Classification may not match market value differences

• Subjective interpretation - Evaluators may disagree on best-fit grade

Best For:

• Large organizations with many similar jobs (healthcare, education, government)

• Highly structured, hierarchical organizations

• Institutions needing clear, communicable levels

• Organizations with strong internal promotion cultures

• Public sector or regulated industries

• Companies with 200+ employees and defined career ladders

Cost & Time Investment:

• Setup: $10,000-$50,000 (consultant) or 150-300 internal hours

• Timeline: 6-10 weeks initial implementation

• Maintenance: 30-50 hours annually

Method 4: Market Pricing Method (External Equity Focus)

Overview: Market pricing determines job value primarily based on what other employers pay for the same or similar work. Rather than evaluating internal worth, you price jobs according to competitive market rates. This is increasingly popular in fast-moving, competitive labor markets.

How It Works:

1. Identify Benchmark Jobs - Select positions with clear market matches

2. Gather Market Data - Collect salary information from multiple sources

3. Match Jobs to Market - Compare your jobs to survey job descriptions

4. Analyze Data - Calculate 25th, 50th, and 75th percentiles

5. Set Pay Ranges - Build ranges around market rates

6. Price Non-Benchmark Jobs - Use benchmarks to estimate other positions

7. Make Policy Decisions - Decide market position (lead, meet, or lag)

Detailed Example:

A tech startup prices its software development jobs:

Step 1: Identify Benchmark Jobs

• Software Engineer I (Junior Developer)

• Software Engineer II (Mid-level Developer)

• Software Engineer III (Senior Developer)

• Engineering Manager

• VP of Engineering

Step 4: Identify Compensable Factors

For the point factor method, select 4-8 factors that matter most to your organization. Common factors include:

Skill Factors:

• Education and training required

• Experience needed

• Problem-solving complexity

• Technical expertise

Responsibility Factors:

• Supervisory responsibilities

• Budget accountability

• Impact on organizational outcomes

• Decision-making authority

Effort Factors:

• Mental demands

• Physical demands

• Stress level

Working Conditions:

• Physical environment

• Hazards or discomfort

• Travel requirements

Step 5: Define Factor Degrees and Point Values

Create 3-5 levels for each factor with point values. Here's an example for "Education Required":

• Degree 1 (20 points): High school diploma

• Degree 2 (40 points): Associate degree or technical certification

• Degree 3 (60 points): Bachelor's degree

• Degree 4 (80 points): Master's degree

• Degree 5 (100 points): Doctoral or professional degree

Weight factors based on organizational priorities. Technical companies might weigh "Technical Expertise" higher than "Physical Demands."

Step 6: Evaluate Benchmark Jobs

Start with 15-25 benchmark jobs that:

• Represent different organizational levels

• Are clearly understood

• Exist in the external market (for salary surveys)

• Are stable positions unlikely to change significantly

Have your committee independently score each job, then discuss and reach a consensus. This establishes the foundation for your structure.

Step 7: Conduct Market Research

Data Sources:

• Salary surveys from professional associations

• Compensation consulting firms (Mercer, Willis Towers Watson, Payscale)

• Government data (Bureau of Labor Statistics)

• Industry-specific surveys

• Local chamber of commerce data

What to Collect:

• Base salary ranges (25th, 50th, 75th percentiles)

• Total cash compensation

• Geographic location adjustments

• Industry-specific data

• Organization size comparables

Match your benchmark jobs to market data as closely as possible, adjusting for differences in scope or responsibility.

Step 8: Develop Your Salary Structure

Create Job Grades:

Plot your job evaluation points against market salary data on a scatter plot. You'll likely see a trend line emerge. Group jobs with similar point totals into grades, typically with 50-100 point spreads.

Example Grade Structure:

• Grade 1: 0-100 points

• Grade 2: 101-200 points

• Grade 3: 201-300 points

• And so on...

Establish Salary Ranges:

For each grade, create a range with three components:

• Minimum: Entry-level pay for the grade (typically 80% of midpoint)

• Midpoint: Market competitive rate for fully proficient performance (use 50th percentile market data)

• Maximum: Pay for exceptional, sustained performance (typically 120% of midpoint)

Calculate Range Spread:

Range Spread = (Maximum - Minimum) / Minimum × 100

Common spreads:

• Non-exempt/hourly jobs: 30-40%

• Professional/exempt jobs: 40-50%

• Management jobs: 50-60%

• Executive jobs: 60-80%

Determine Range Progression:

The percentage increase between grade midpoints is typically 10-15% for most structures.

Step 9: Plot Jobs and Identify Issues

Place all evaluated jobs into the structure and identify:

Green-Circled Employees

“Underpaid relative to the job’s actual value”

A green-circled employee is someone whose current salary is below the appropriate pay range for the evaluated value of their job.

This means that:

• Their job responsibilities, complexity, and contribution justify a higher pay grade.

• The employee is not “cheap talent” — they are structurally underpaid, not performance-deficient.

• This gap typically happens when:

  • the pay structure hasn’t been updated,

  • the job grew over time,

  • or market rates increased faster than internal adjustments.

Red-Circled Employees

“Overpaid relative to job value or pay grade”

A red-circled employee earns above the maximum of the salary range for their job’s evaluated value.

This means that:

• The issue is not the person — it is the misalignment between pay and job value.

• Often occurs due to:

  • legacy salaries from previous roles,

  • rapid structural changes,

  • long tenure without grade correction,

  • or past discretionary increases.

Compression Issues

Compression occurs when the pay differences between jobs, levels, or tenures become too small, even though the jobs should be meaningfully different based on job evaluation results.

Compression means “the salary structure has collapsed inward,” making it difficult to maintain fairness, motivation, or internal equity.

Types of Compensation Compression

1. New Hire vs. Tenured Employee Compression

• New hires are brought in at salaries equal to or higher than long-tenured employees.

• Happens when market rates rise quickly and the organization fails to adjust internal salaries.

Problem:
Long-tenured employees feel undervalued → morale drops → retention risk increases.

2. Supervisor–Subordinate Compression

• Supervisors earn the same as—or sometimes less than— the employees they supervise.

Problem:
It undermines leadership roles and reduces motivation for employees to pursue higher responsibilities.

3. Grade Overlap/Structure Compression

• Adjacent job grades have pay ranges that overlap too much, making the differences between grades meaningless.

Example:
Grade 6 max = 52,000
Grade 7 min = 51,500
(Only $500 difference → not a meaningful distinction)

Problem:
Job evaluation loses its purpose; career progression becomes unclear.

4. Performance Compression

• High performers and low performers end up earning nearly the same, especially in weak pay-for-performance systems.

Address these systematically through your implementation plan.

Step 10: Develop Implementation Plan

Consider:

• Budget impact and timeline for adjustments

• Communication strategy

• Transition policy for red/green-circled employees

• Performance management alignment

• Annual review and update process

Phase adjustments over time if needed, prioritizing the most critical inequities.

Real-World Case Study: TechStart Solutions

Let's walk through a complete example using a fictional mid-sized technology company.

Company Background

TechStart Solutions is a 150-employee software development company that has grown rapidly. They've never had a formal compensation structure, leading to pay inconsistencies and retention issues. Sarah, the new HR Director, has been tasked with creating their first structured approach.

Implementation

Step 1: Project Setup

Sarah formed a committee including:

• Herself (HR Director)

• CFO

• VP of Engineering

• VP of Sales

• Director of Customer Success

Timeline: 3-month project with quarterly reviews thereafter.

Step 2: Job Descriptions

Sarah identified 45 distinct jobs across the organization. She interviewed managers and employees to update position descriptions and standardized the format.

Step 3: Evaluation Method

The committee chose the point factor method for its objectivity and the company's diverse job types (technical, sales, administrative, executive).

Step 4: Compensable Factors

They selected six factors important to TechStart (sample company):

1. Technical Knowledge/Skills (max 200 points) - 25% weight

2. Experience Required (max 160 points) - 20% weight

3. Problem Solving/Complexity (max 160 points) - 20% weight

4. Leadership/Supervisory Responsibility (max 120 points) - 15% weight

5. Impact on Business Outcomes (max 120 points) - 15% weight

6. Communication/Collaboration (max 40 points) - 5% weight

Total possible points: 800

Step 5: Factor Degrees

For "Technical Knowledge/Skills," they defined:

• Degree 1 (40 pts): Basic computer literacy, learns on the job

• Degree 2 (80 pts): Specialized technical training or certification

• Degree 3 (120 pts): Bachelor's in a technical field, proficient in relevant tools

• Degree 4 (160 pts): Advanced technical degree, expert-level specialized skills

• Degree 5 (200 pts): Recognized expert, deep specialized knowledge, industry thought leader

Similar scales were developed for all six factors.

Step 6: Benchmark Jobs Evaluated

Sarah selected 18 benchmark jobs representing all departments:

The committee met for three half-day sessions to score these jobs, resolving disagreements through discussion.

Step 7: Market Research

Sarah purchased salary data from:

• Dice Tech Salary Report (for technical roles)

• Sales Management Association Survey

• SHRM Compensation Data

• Local technology council survey (for geographic adjustment)

She adjusted all data to their metropolitan area using a 0.95 cost-of-labor multiplier (5% below major tech hubs).

Market Data Examples (50th Percentile):

• Junior Developer: $68,000

• Senior Developer: $105,000

• Engineering Manager: $135,000

• Sales Representative: $75,000 (base + commission)

• VP of Engineering: $175,000

Step 8: Salary Structure Design

Sarah created a scatter plot of job evaluation points versus market salaries, which revealed a strong correlation. She designed 10 salary grades:

TechStart Solutions Salary Structure:

Midpoint progression: 12% on average

Step 9: Job Placement and Issue Identification

Sarah evaluated all 45 jobs and placed them in grades. She then compared current salaries to the new structure:

Issues Found:

Green-Circled (Underpaid):

• 8 employees below minimum (mostly long-serving administrative staff and some developers)

• Average shortfall: $4,200

• Total cost to bring to a minimum: $33,600

Red-Circled (Overpaid):

• 5 employees above maximum (early hires given equity + high salaries)

• Average excess: $12,000

• Plan: Freeze base, allow equity appreciation, shift compensation mix

Compression Issues:

• Two senior developers making 5% more than their manager

• Junior and mid-level developer pay overlaps significantly

Step 10: Implementation Plan

Budget Analysis:

• Immediate adjustments for green-circled: $33,600

• Compression fixes: $28,000

• Market adjustments to retain key talent: $45,000

• Total Year 1 investment: $106,600 (1.2% of payroll)

Timeline:

• Month 1: Immediate adjustments for green-circled employees (presented as "equity adjustments")

• Month 2-3: Address compression issues during normal review cycle

• Ongoing: Red-circled employees receive no base increases until salary structure catches up (2-3 years)

Best Practices and Tips

1. Review Annually Markets change, jobs evolve, and inflation occurs. Review your structure at least annually and adjust midpoints in response to market movements.

2. Maintain Internal Equity. While market data is essential, don't abandon internal equity. A job that's 20% more valuable internally should typically pay 15-25% more.

3. Document Everything: Keep detailed records of your methodology, decisions, and rationale. This protects you legally and helps with future updates.

4. Train Managers. Your structure only works if managers understand and use it correctly. Provide training on making offers, positioning employees in ranges, and justifying pay decisions.

5. Stay Consistent. Don't make exceptions that undermine your structure. If someone must be paid outside the range, address why the job evaluation was wrong, not just the salary.

6. Communicate Appropriately. Decide what to share: Will employees know their range? Their grade? Just their individual salary? Be consistent in your transparency level.

7. Plan for Growth: Build flexibility for new roles, promotions, and organizational changes. Leave room in upper grades for expansion.

8. Consider Total Rewards. Base salary is just one component—factor in bonuses, equity, benefits, and non-monetary perks in your overall strategy.

Common Pitfalls to Avoid

• Analysis paralysis: Don't spend six months perfecting a structure. Good enough is better than perfect

• Copying others: What works for Google may not work for your 50-person startup

• Ignoring culture: Your compensation philosophy should align with organizational values

• One-time project: Compensation management is ongoing, not a one-and-done task

• Hiding the structure: Excessive secrecy breeds distrust and speculation

• Market-only focus: Pure market pricing ignores internal equity and can perpetuate discrimination

References and Citations

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• Cited for: Point factor method advantages, green-circle and red-circle management

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• 7th edition (2023): ISBN 9781398611122

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• Industry standard for compensation professionals

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• Cited for: Range spread formulas and standards (30-80%), midpoint progression ranges (5-20%)

Gradar. (2025). Job evaluation methods: Point factor systems.

• Point factor system consistency and applications

• Cited for: Consistency across diverse jobs

Maini, N. (2024, February 26). Step-by-step guide on how to conduct a job evaluation exercise using the point factor method. Medium.

• https://medium.com/@nikhil_52944/step-by-step-guide-on-how-to-conduct-a-job-evaluation-exercise-using-point-factor-method-1fa9a90d786a

• Practical implementation guide

• Cited for: Customization of point factor systems

SalaryCube. (2025). Job classification systems: Government and corporate applications.

• Classification method implementation

• Cited for: Job classification approach overview

Synergogy. (2025, August 18). Job evaluation using the point factor.

• https://synergogy.com/job-evaluation-using-point-factor/

• Practical guide to point factor implementation

• Additional resource on the four major factors

University of Waterloo, Human Resources. (2025). Hay job evaluation system overview.

• https://uwaterloo.ca/human-resources

• Documentation of Hay method factors

• Cited for: Hay's method: three primary factors (Know-How, Problem Solving, Accountability)

Workology. (2024). Job ranking method: Simple approaches to job evaluation.

• https://www.workology.com

• Overview of ranking methods

• Cited for: Job ranking method simplicity

Hastings, R., & McCord, P. (2009). Netflix Culture: Freedom and Responsibility. Netflix.

• Netflix compensation philosophy documentation

• Cited for: Market-based pricing approach, top-of-market positioning

Levels. fyi. (2021). Netflix compensation data and analysis.

• https://www.levels.fyi

• Market positioning evidence and analysis

• Cited for: Netflix 90th percentile positioning verification

LinkedIn. (2023). Global talent trends: Compensation and benefits.

• Annual compensation review recommendations

• Cited for: Annual structure review best practices

Netflix. (2024). Compensation philosophy and practices.

• Current compensation approach documentation

• Cited for: Individual job pricing, market adjustment practices

Peoplebox. (2025). The Hay method: Understanding point-factor job evaluation.

• Hay system global usage

• Cited for: Hay method as the most widely used point-factor system

U.S. Department of Labor. Fair Labor Standards Act (FLSA) Regulations.

• https://www.dol.gov

• Wage and hour requirements

• Cited for: Compliance requirements

U.S. Equal Employment Opportunity Commission (EEOC). Equal Pay Act Guidelines.

• https://www.eeoc.gov

• Equal pay compliance requirements

• Cited for: Legal compliance in job evaluation

Uniform Guidelines on Employee Selection Procedures. (1978). Federal Register, 43(166), 38290-38315.

• Legal framework for job evaluation and classification

• Cited for: Documentation standards

Korn Ferry Hay Group. (2017). Job evaluation: Foundations and applications. Korn Ferry.

• https://www.kornferry.com/content/dam/kornferry/docs/pdfs/job-evaluation.pdf

• Comprehensive guide to Hay methodology

• Background reference on established evaluation systems