What is Factor Comparison?
Factor comparison is a scientific method designed to rank job roles based on a breakdown of factors rather than the role as a whole.
Factor comparison is a job evaluation method used to determine the relative value or worth of different jobs within an organization. It involves assessing various factors or elements of jobs and assigning weights or points to each factor based on their importance or significance to the organization. The total points or weights assigned to each job are then used to establish a ranking or hierarchy of jobs in terms of their relative value or importance.
Here's an overview of the factor comparison method:
1. Identifying Factors: The first step in factor comparison is to identify the key factors or elements that contribute to the value of a job. These factors typically include knowledge and skills required, responsibilities, decision-making authority, problem-solving complexity, physical effort, working conditions, and other relevant factors specific to the organization or industry.
2. Determining Factor Weights: Once the factors are identified, each factor is assigned a weight or point value to reflect its relative importance or significance. The weights are usually determined through a systematic process involving input from job evaluators, HR professionals, and organizational stakeholders. The weights can be assigned on a scale (e.g., from 1 to 10) or as a percentage.
3. Evaluating Jobs: Job evaluators compare and assess the different jobs based on the identified factors. They evaluate each job against each factor, considering the extent to which the job possesses or requires the characteristics associated with that factor. Job descriptions and other relevant information are typically used as references during the evaluation process.
4. Assigning Points: For each factor, points or scores are assigned to reflect the level or degree to which the job meets the factor requirements. The points assigned to each factor are then multiplied by the weight assigned to that factor, resulting in a weighted point value for each factor.
5. Calculating Total Job Points: The weighted point values from all factors are added together to calculate the total job points for each job. The higher the total points, the higher the relative value or worth of the job within the organization.
6. Establishing a Ranking: Jobs are ranked based on their total points, with jobs having higher points considered more valuable or significant within the organization. This ranking can be used to establish a job hierarchy, guide compensation decisions, and inform organizational structure and career progression.
Factor comparison requires careful consideration and judgment in assigning weights and evaluating jobs. It is important to ensure that the factors selected and the weightings assigned align with the organization's goals, job requirements, and the relative value of different factors to the organization's success.
Factor comparison is a complex and detailed job evaluation method and may require the involvement of trained evaluators or HR professionals with expertise in job analysis and evaluation techniques.