Every Skill has a Point value. It's up to the Admin to decide what a Point "means" to your Team. Usually, Admins use points as a proxy for time, so that a Skill's Point value is a way of indicating how much time is typically needed to prepare for and complete that Skill.
Let's assume an Admin has decided that 1 point = 15 minutes. If an Author thinks that a Skill should take about an hour to complete, then she should make the Skill "worth" 4 points. If another Admin on another Team decided to make 1 point = 1 hour, then that same Skill would be worth 1 point.
Admins can define the Point standard in the Team Settings page:
It doesn't really matter what the Team standard is, because everyone in the Team will use the same standard. Everyone can see the standard being used at any time by hovering over any Skill's Point box, as shown:
Before choosing a Team point standard, Admins may want to ask Team Authors what size time increment would be most useful to them. If their Skills are more involved and take more time, then Authors may prefer a larger increment. Smaller time increments may be more useful when working with smaller, shorter Skills.
Points don't have to represent time: they may instead represent some measure of importance. Perhaps a 3-point Skill is much more important than a 1-pointer?
But using time has one more benefit: it gives both Learners and Managers a way to budget and prioritize their training based on how much time they have for it. A Manager who wants to assign 8 hrs of ongoing training to her team every quarter can easily convert that to 16 points when 1 point = 30 minutes.