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Abstract
This study compares the relative accuracy and practical utility of seven different job evaluation approaches. Results of 657 position evaluations indicate that traditional and hybrid systems are at least as accurate, reliable, and objective in predicting grade level as are statistical policy-capturing methods when based on a standardized job analysis tool.
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Factor comparison is systematic and scientific method designed to carry out job evaluation which instead of ranking job as a whole, ranks according to a series of factors.
Factor comparison definition
Factor comparison is systematic and scientific method designed to carry out job evaluation which instead of ranking job as a whole, ranks according to a series of factors.
The aim of factor comparison is to assign financial value to the relative parts of each job role.
Factors of factor comparison
1. Skill
2. Mental effort
3. Physical effort
4. Responsibility
5. Working conditions
Factor comparison steps
1. Selecting key jobs across the company, arund 20-25 jobs.
2. Selecting corresponding evaluation parameters for each of the selcted jobs.
3. Giving ranks to each job under each formulated factor in an independent fashion.
4. Assigning an equivalent monetary value to each job parameter.
5. Dividing money value of the job amongst the formulated factors.
Advantages and disadvantages of factor comparison
The advantages of factor comparison method
- its broad application,
- ensuring companies that their recruitment and selection methods provide a reasonable return on investment,
- fair way of assigning money value
- flexibility of the method as there is no upper limit on the rating of the factors.
The disadvantages of factor comparison:
- someone has to make a decision on evaluating the relative worth of each factor,
- cost,
- it's time consuming.
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A set of compensable factors are identified as determining the worth of jobs. Typically the number of compensable factors is small (4 or 5).
Examples of compensable factors are:
- Skill
- Responsibilities
- Effort
- Working Conditions
Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain characteristics.
- equitable pay (not overpaid or underpaid)
- range of the factors (for each factor, some jobs would be at the low end of the factor while others would be at the high end of the factor).
The jobs are then priced and the total pay for each job is divided into pay for each factor. See example matrix below:
Job Evaluation: Factor Comparison | ||||||||||||||||||||||||||||||||||||||
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This process establishes the rate of pay for each factor for each benchmark job. Slight adjustments may need o be made to the matrix to ensure equitable dollar weighting of the factors.
The other jobs in the organization are then compared with the benchmark jobs and rates of pay for each factor are summed to determine the rates of pay for each of the other jobs.
Advantages | Disadvantages |
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Tips
- Few Factors Use a few well identifiable factors.
- Biases Examine the Factor dollar weights for inherent biases against females and minorities.