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Factor Comparison

What is Factor Comparison?

Factor comparison is a systematic method of evaluating a job based on various factors instead of evaluating the job as one single factor. The goal of factor comparison is to assign financial value to the various factors of the job’s role.

Factor Comparison Model

The factor comparison model for job evaluation is used by HR to compare the different values and factors affecting a particular job role and hire on the basis of the factors required for a particular job role. To form an effective factor comparison method you should follow the below-mentioned steps;

Step 1:

Identify and list all the factors affecting a particular job role and its compensation. It may include things like previous job experience, educational analysis, skills, and abilities of the candidate.

Step 2:

Once the factors are identified they should be listed in the order of importance of the factors for the particular job role.

Step 3:

Create a value for each factor after researching the job listing and the average compensation given for a particular job role.

Step 4:

After the values have been set, compare the values with different factors and form a proper evaluating process that should be followed to hire a candidate.


Frequently Asked Questions

What are the key features of factor comparison?

Factor comparison is calculated based on the following factors;

  • Skill
  • Mental effort
  • Physical effort
  • Responsibility
  • Working conditions

Why is factor comparison required?

Factor comparison is used to reduce the unnecessary individual items and form a proper and organized criteria which helps in deciding the compensation for the employees for a particular job role.

What are the benefits of factor comparison?

Factor comparison has the following benefits;

  • It ensures that the recruitment of the employees is based on the various factors and evaluated completely
  • It has a fair procedures of evaluating the skill and requirement of the candidate
  • This method is flexible and there is no way of assessing in favor of the candidates.


What are the demerits of a factor comparison system?

Factor comparison has the following demerits;

  • Time consuming
  • Higher cost
  • Evaluation of the factors should be compared and evaluated properly else it could cause hiring issues.

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