HR Glossary

Factor comparison

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.

what-is-factor-comparison

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.

See TalentLyft in action

Applicant Tracking, Recruitment Marketing, Sourcing and Talent CRM software are powerful alone, but unstoppable when used together!


Related content

  • Accessibility refers to the ease with which company's facilities, products, services, functions or people are available to as many employees as possible.Definition of accessibilityAccessibility refers to...

  • Co-employment is the relationship between an employer and a firm specialized in employee leasing or a Professional employer organization (PEO).Co-employment definitionCo-employment is the relationship between an...

  • A cover letter is a written document submitted with a resume to provide additional information on skills and experience and to explain the applicant's credentials and...

  • Due diligence refers to the process of investigating and assessing a person, business or details of an investment to assess suitability, risk, potential value and reward...

Explore more topics

  • Video in Recruitment

    Discover how incorporating video can enhance your recruitment strategy. From video job postings to candidate video submissions and virtual interviews, video adds a personal touch, increases engagement, and streamlines the hiring process. Learn how to use video to attract, assess, and connect with top talent more effectively.

  • Mobile Recruitment

    If you think job seekers look for jobs in the newspaper or on their desktop computers, think again. IT's 2023. and people use their phones for everything, including job searching. Learn how to meet them there and adjust your recruitment process to turn mobile recruitment into your biggest advantage.

  • Training and Development

    Training and development of your existing and new employees is what drives organizational success in the long term. By giving your people opportunities to educate themselves and improve their skills and expertise, you create a culture of learning, reducing turnover and improving productivity. Learn all the best practices and set up your employees for success!

  • People Analytics

    People Analytics – Unlock the power of data to make informed HR decisions. Learn how people analytics can help you track employee performance, improve retention, and enhance recruitment strategies. Use data-driven insights to optimize your workforce management and build a stronger, more efficient organization.

  • Recruitment Metrics

    If you can't measure it, you can improve it. Or something like that. Either way, tracking metrics is in the recruitment process is crucial to see what works and what doesn't. Dive in to this topic to learn all about the most important metrics to track and how they can help you optimize your hiring process.

  • Turnover and Retention

    Reduce turnover and improve retention with proven strategies. Learn how to identify the causes of employee turnover, implement retention programs, and create a positive workplace culture that fosters loyalty. By focusing on employee engagement and satisfaction, you can retain top talent and strengthen your organization’s long-term success.

Simple and affordable recruitment software