Factor comparison is a strategy that is designed to be used in a systematic manner in order to conduct job evaluations based on many criteria such as abilities, physical efforts, mental efforts, responsibilities, and working environment. The method that is highly helpful for estimating the value of occupations was initially developed by Thoman E. Hitten, who was the first person to do so. In this approach, rather than ranking the position as a whole, it is broken down into a number of individual components.
Identifying benchmark jobs and positions that are consistent across a variety of firms is the next step in the process. An amount of money is allotted to each position, and the total amount of money is then broken down further for each factor.
Comparing the salary packages and benefits that are provided by various organizations is another use of factor comparison that may be utilized. An extension of the factor technique is the point method, which further divides each factor into points. This approach is named after the point method. For instance, a talent can be split down into categories such as experience, education, and ability, and in the same way, duties can be segmented into categories such as financial and supervisory. Hazards and extremes in the environment are two categories that can be used to classify working circumstances.
What is the proper way to compare factors?
Approximately twenty to twenty-five positions are chosen from across the organization. There should be a distribution of the tasks throughout the various departments.
When evaluating candidates for each job, many criteria, such as education, experience, and talents, are taken into consideration.
We assign a rank to each parameter on its own, based on the order in which they are considered to be important. It is possible to accomplish this by consulting with professionals in the industry and carrying out a survey among the staff members.
Each parameter is given a monetary value that is attributed to it. In order to accomplish this, research is conducted on the pay of comparable positions within the industry.
A monetary value is then created for each work by combining the separate values of the factors that were used in the process. This constitutes the starting compensation for a certain work position.
The benefits of comparing different factors
Because the five criteria that are considered in each and every work are the same, the factor comparison technique of evaluation is applicable to a wide variety of jobs and positions. This is because the five factors are common to all jobs.
This can be readily used to freshly formed roles in order to determine the value of that job. It is also applicable to jobs that have just been created.
Every position in the organization is assigned a monetary value, and this method is quite helpful for determining the base compensation for any position inside the organization.
The method is adaptable because there is no maximum rating value that can be assigned to a factor.
As it becomes obvious what is required for a position, the process is vital in recruiting the finest potential talent. It is helpful in picking the best candidates among those that are submitted for consideration.
Because the five elements that are utilized for the evaluation are consistent, the method is simple to comprehend thanks to the fact that it is simply comprehended by the workers.
One way for managers to calculate employee remuneration for the creation of new roles is through the use of factor comparison. Employees can also use factor comparison to negotiate their own salaries.
There are some drawbacks to comparing factors.
Evaluation of the factors is a matter of opinion.
As a result of the fact that the worth of the positions is determined by someone from the authority, there is a possibility of prejudice occurring.
It is possible for the rating of factors to be difficult and time-consuming.
It is necessary for the assessors to have a greater understanding of the criteria in order for them to score them.
