What does the factor comparison system evaluate?

The factor comparison system evaluates jobs by analyzing their specific components, which are often referred to as "factors." This method involves breaking down each job into a set of compensable factors, such as skills, responsibilities, effort, and working conditions. Each of these factors is then compared against a benchmark or key jobs, allowing for a detailed picture of job value within the organization.

This systematic approach facilitates a fair and precise way to establish pay rates for different positions, ensuring that jobs with similar requirements and contributions to the company are compensated equitably. By focusing on a factor-by-factor analysis, the process minimizes bias and helps to ensure that the pay structure is linked closely to the actual value each job contributes based on its unique characteristics.