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Factor Comparison Method

Factor comparison method is a scientific job evaluation method that ranks jobs based on analyzing and assigning value to their compensable factors, rather than evaluating the overall job. It rates jobs by comparing factors like skills, responsibilities, and working conditions to the same factors in key benchmark jobs. Each job's factors are ranked separately and the rankings are totaled to determine the job's overall value and appropriate compensation. Though more systematic than other methods, factor comparison can be time-consuming and difficult to implement, understand, and keep current given changing economic conditions. It also risks overlooking important job factors not included in the analysis.

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Wadzanai Rinashe
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660 views2 pages

Factor Comparison Method

Factor comparison method is a scientific job evaluation method that ranks jobs based on analyzing and assigning value to their compensable factors, rather than evaluating the overall job. It rates jobs by comparing factors like skills, responsibilities, and working conditions to the same factors in key benchmark jobs. Each job's factors are ranked separately and the rankings are totaled to determine the job's overall value and appropriate compensation. Though more systematic than other methods, factor comparison can be time-consuming and difficult to implement, understand, and keep current given changing economic conditions. It also risks overlooking important job factors not included in the analysis.

Uploaded by

Wadzanai Rinashe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

FACTOR COMPARISON METHOD

Factor comparison method is a scientific method designed to rank job roles based on a


breakdown of factors rather than the role as a whole. The ultimate goal of factor comparison is
to assign the relative parts of each job role a financial value that is the amount of compensation
offered for that part of the role. This method is mostly used in evaluating professional and
managerial positions. It is a combination of ranking and point methods. It rates the jobs by
comparing them like that in ranking method and it makes analysis by subdividing jobs into
compensable factors like than in point method. The relative rank of the jobs evaluated assigning
money value. Under this method each job is ranked for each compensable factor separately. Each
job factor is broadly defined. The most common factor used in job evaluation includes skills,
physical and mental requirements, working conditions and responsibilities. Factor comparison is
also under the quantitative methods of undertaking job evaluation this method has a procedure
according to Benge which is as follows :

1. At the initial stage, some key jobs which are well recognized are selected. These jobs
should be from a cross-section of departments. These should represent all levels of wages
and salaries which are considered fair, both internally as well as externally.
2. Various factors of the jobs which are to be considered for comparison, should be
identified. These factors may be mental requirement. Skills, physical requirement,
responsibility and working conditions.
3. Each factor of a job is compared with the same factor of the key job and rank is awarded.
This exercise is repeated for all other factors.
4. The relative worth of a job is determined by adding the ranks obtained by different
factors of a job. Sometimes, the rank is expressed in terms of monetary values and these
values are added together to get the correct wage rate for the job.

As a result we see that the factor comparison is more systematic and analytical as compared to
the other methods. This method also has its advantages , It provides more accurate information
about the relative worth of a job as different comparable factors are compared with key jobs that
is the validity of this system is greater than any system. Furthermore, only limited number of
factors relevant for the effective job performance are compared, there are reduced chances of
overlapping. Moreover, the evaluation is more systematic and analytical, its logic can be
accepted by trade unions and workers and it also means its easy to adhere since it has some logic
to it when wanting to evaluate it to other organizations, top management and also some
employees.

However, factor comparison method also has its merits, this method is quite costly and time
consuming to install and difficult to understand by those not fully conversant with job evaluation
process in other words it might need a very skillful person to articulate it better to the
organization which is very costly. Also, wage rates are adopted for making comparison, the
system may become obsolete very soon as there may not be proportionate increase in wages for
all jobs especially in the economic situation which Zimbabwe is currently its difficult to use such
methods for job evaluation. More so, system considers only limited factors of job for
comparison. This may be a positive point so far as avoidance of duplication and simplicity of
procedure are concerned, but may ignore other factors which may be important for the
performance of the job. It is also quite difficult to assign weightage to every factor.

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