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In: Economics

Justify Why is the point method the most common form of job evaluation in Canada?

Justify Why is the point method the most common form of job evaluation in Canada?

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Expert Solution

Let us first understand the concept of Point Method.

The point method was developed in the 1920s. It compares jobs on rating scales of specific factors. Also known point-plan or point factor method, it involves rating each job on several compensable factors and adding the scores on each factor to obtain a point total for a job. Designing a point plan is complex but once developed, it can be very easy to understand. As understood by the name, it is a quantitative method.

A score of 67 out of 100 points is required to immigrate to Canada on the basis of factors like English, education, experience, age, adaptability etc.

Typically the compensable factors include the major categories of:

  1. Skill
  2. Responsibilities
  3. Effort
  4. Working Conditions

These factors can then be further defined.

  1. Skill
    1. Experience
    2. Education
    3. Ability
  2. Responsibilities
    1. Fiscal
    2. Supervisory
  3. Effort
    1. Mental
    2. Physical
  4. Working Conditions
    1. Location
    2. Hazards
    3. Extremes in Environment

Each factor is divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.

Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.
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Canada was the first country to introduce the point-based system. It believes in multiculturism and to employ more persons from across the world, it follows a point-based method of evaluating a person's immigration.

Any skilled applicant with a job offer scores higher than any applicant without. The application process was again revamped due to the gap between a foreign candidate and an employer and reduced the points for job offer, they also changed the system to an invitation to immigrate method that allows an open expression of interest with the option the pool of candidates can remain a year or two in the system to meet the frequently published "lottery point" and get invited. The lack of visibility of qualified immigrant candidate profiles in the job bank for the employers and hiring agencies in reaching out with a job offer was observed to lag the process.


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