Factor comparison is defined as a systematic and scientific method designed to carry out job evaluation. Instead of ranking jobs as a whole, factor comparison ranks according to a series. The main aim of factor comparison is to assign financial value to the relative parts of each job role. Factor comparison breaks down a job and its description into a small number of key factors. Some of them include skills, effort, knowledge, and responsibilities.
Each job profile is assigned some responsibilities and a salary to meet those requirements. Thus, after this designation is mentioned, it is further broken down into each factor. Advantages of factor comparison include its broad application where it can be applied to a wide range of job roles and industries. An employee can apply to new roles in order to compare them to similar positions in the same company or different ones.
Also, See: Deferred Compensation
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