Factor comparison method

The factor comparison method employs the principle of ordering and is a

analytical technique to compare positions through valuation factors. The creation
The factor comparison method is attributed to Eugene Benge, who proposed five
general factors:

Mental requirements.

Required skills.

Physical requirements.

Responsibility.

Working conditions.
The factor comparison method requires that, after the analysis of the positions, the following steps are taken
next stages:

1. Selection of the valuation factors: the factors constitute criteria for comparison, it is
to say, they are the comparison tools that will allow us to rank in order of importance the
positions to be evaluated. The choice of valuation factors will depend on the types and
Characteristics of the positions to be evaluated. The basic idea of this method is to identify few
factors, but broader ones, that allow for easy and quick comparison.

2. Definition of the meaning of each valuation factor: the better the definition of the
The more factors, the greater the accuracy of the method.

3. Selection of reference positions: to allow comparisons between positions. The

reference points are chosen to facilitate the manipulation of valuation factors.

4. Ordering of the valuation factors: each reference position is valued through

of the arrangement of the valuation factors. Let's assume that the reference positions
selected are the receptionist and the cleaning supervisor:
The ranking of each factor is independent.

5. Valuation of the factors in the reference positions: whether the selection of the positions of
reference (for comparison with other positions) falls on the positions of
receptionist and cleaning manager: the first receives a payment of $300.00
monthly and the second of $150.00 monthly.* With the factors from Benge, let's assume that the
valuation committee determines the importance of each factor in each reference position, of the
In the following manner: If the salaries of the reference positions are known, it is easy to assign their value.
monetary to each factor. The total sum of the values of the factors constitutes 100% of the
salary. The value of each factor for each reference position must be determined, such as
in the previous example. Thus, the valuation of the factors can be done in percentage form or
in money.

6. Creation of the sorting matrix (also prioritization or alignment) and valuation

from the factors: now the task is to reconcile the results obtained in the factor evaluation with
those obtained in the original ordering of the factors. In other words, there must be
congruence between the relative differences indicated by the ordering and the differences
absolutes found in arbitrary and subjective salary assignments. In practice, this
The task is not easy at all. The simplest way is to create a prioritization matrix of the factors.
in which each valuation factor is determined and ordered according to its importance in the
reference positions, as shown in figure 10.16.

The matrix is just a map that shows the relative differences between positions and does not indicate
the absolute differences, which is what is desired. The absolute differences are determined by the
valuation process of the factors. The above matrix is completed with the results of the
valuation of the factors and it is transformed into a hierarchy and valuation matrix of the
factors (figure 10.17):

7. Comparative job scale: the next step is to transform this hierarchy matrix and
valuation of factors on a comparative scale of positions, as suggested by figure 10.18.

The comparative job scale completes the job evaluation tool with the
factor comparison method. This scale places each position in relation to each
factor by their comparison, and then the monetary values are summed up (or in
percentages) to obtain the overall valuation of the position.
To the extent that there were contradictions or anomalies in the double process of
ordering and valuation of the factors, other adjustments must be made until the results
be coherent. This technique is less accurate than the point valuation method, but it is
the most reliable, from a global valuation perspective, of all the techniques of
job evaluation.

Point rating method

The American Merrill R. Lot6 created this method, also called factor valuation and
points, and it became the most common job evaluation method in companies.
valued through valuation factors. It is also a quantitative technique; that is, attributes are assigned
numerical values (points) to each item of the position and the total value is obtained with the
sum of these numerical values (point count). The point valuation method is based
en el análisis de puestos y consta de las siguientes etapas:

1. Choose the valuation factors: the valuation factors are the same factors of
specifications chosen for the job analysis and profiling program. Therefore,
the selection, definition, dimension, and qualification of the factors are issues that are already
we deal with the chapter dedicated to job analysis and profiling.

In general, valuation factors are considered in four groups:

a) Mental requirements: demands of the positions related to intellectual characteristics

of the occupant.

b) Physical requirements: demands of the positions related to the physical characteristics of the
occupant.

c) Implicated obligations: requirements of the positions regarding the responsibilities that

must be assumed by the occupant.

d) Working conditions: physical conditions in which the occupant performs their job.

These four groups usually involve the factors shown in figure 10.19.

2. Weigh the valuation factors: the factors are weighed according to the
relative importance of each one; how the contributions of the factors affect performance
The positions are not identical, it is necessary to make compensatory adjustments.
The weighting involves assigning to each valuation factor its relative weight in the
comparisons of the positions. Generally, the percentage weight of each factor is used.
enters the job evaluation. Once the weighting is completed, many times an effort is made
make certain adjustments, so the sum of the description of all factors does not always
throws 100. In these cases, the point scale undergoes a constant reduction or increase, which
which does not negate the precision of the measuring instrument (figure 10.20).

3. Create the point scale: once the weighting of the factors is finished, the stage
the next step is to assign numerical values (points) to the degrees of each factor.
Generally, the lowest degree of each factor (degree A) corresponds to the value of
percentage of weighting. In other words, the weighted values serve as a basis
to create the point scale and will constitute the point value corresponding to grade A
of each factor. Once the numerical values (points) for grade A of each
factor, the next step is to assign points to the grades B, C, D, and so on. Because
Thus, it is about establishing a progression of points along the various degrees of
each factor. An arithmetic progression, a geometric one, or even an arbitrary one is used.
For example:

The arithmetic progression causes the value of each degree to increase in accordance with a constant value.
as the geometric progression makes the value of each degree increase by 100% in
relationship with the previous grade; this causes the point value to double at each stage
successive. The use of these progressions undoubtedly depends on the objectives of the
valuation. The arithmetic progression tends to produce a linear salary, while the others
Progressions generate a salary curve. If the arithmetic progression is adopted for the factors.
Weighted, the following point scale is obtained, as illustrated in figure 10.22.

4. Prepare the job valuation manual: once the point scale is finished, you
define the meaning of each degree of all valuation factors. Now it is a matter
to prepare the job valuation manual, which is a sort of dictionary or
model for comparing the various levels of each factor and their respective
values in points. Each factor occupies a page of the manual, as shown in the figure
10.23.
5. Valuation of positions through the valuation manual: with the manual of
job evaluation is carried out to assess them, based on a single factor, and all the
positions are compared with it; the degree and the number of points of each are noted
placed in relation to that factor. A double-entry form is usually used;
that is, the positions are placed in the rows, and the factors in the columns
valuation, as in the model shown in figure 10.23. At this stage, each position
corresponds to a value in points obtained by summing the points for each
factor.
6. Delineation of the wage curve: now, the task is to convert the values of the
points to monetary values. It is important to note that this does not mean that the numerical relationship
among the positions, indicate precisely the differences in monetary values between
they. The values of the point positions are never entirely accurate, and only
They function as guidelines for the relative dispersion of the positions (figure 10.24).
The first step is to correlate the value of the points of each position with the salary of its
occupant (or average salary, if the position has several occupants). With the values of the
puntos y los salarios reales se prepara una gráfica con los valores de los puntos en el eje de las
abscissas (x) and the salaries in the coordinates (y). The values of the points follow a
measurement standard established through valuation, which does not occur in the case
from the salary scale. To configure the values of x (points) and y (salaries), one ...
build a scatter plot that indicates the relationship between the valuation values
of the positions and the respective real salaries (figure 10.25).

This graph establishes the average line; that is, the line of the salary trend (straight or
salary curve) that has the smallest possible mean distance from the scattered points of the graph of
figure 10.26.

The adjustment of the trend line using the least squares method involves the analysis of
simple linear correlation of two variables, namely:

a) Independent variable (variable x): the points.

b) Dependent variable (variable y): salaries.

The equation to generate a parabola (salary curve) is:

To generate a salary line, the equation is used:

In these equations, a, b, and c represent the constants (parameters), while x and yc,
variables. The parameter a defines the initial position of the wage curve or line; the parameter b,
slope of the trend line, and c, the curvature of the trend line.

The parameter values are calculated using the following equations:

By solving the system of these three equations, we will easily find the values of a, b, and c.
the following way:

The results of the evaluation of the positions in points (xi) and the real salaries (yi) are taken and to
The continuation involves dimensioning each position using those two variables, namely:

7. Definition of salary bands: once the line of the salary trend (curve or
salary line) it is verified that, along that line, for each value in points
correspond to a single wage value. As the management of wages and salaries is
it deals with salary structures, not individual salaries, it is necessary
transform the trend line into a wage band. This is achieved by performing a
approach to the greater and lesser quantity along the line. This approach is
calculate percentage-wise (for example, ±5% or ±10%).

If we change the salary band graph, the result is obtained in numerical terms.
as shown in figure 10.28.

In figure 10.29, all the positions that have a valuation of between 100 and 200
points belong to class 1: your admission salary will be the lower limit of the
band ($608.80); after the trial period, it will be the average salary of the band ($760.00),
And later on, according to the performance evaluation, it can reach the upper limit of the
band ($912.00).
 Since job class categories are exclusive (a position only fits in one scale of
bands overlap, so that the salaries of one band can
to be similar to those of other more or less prominent bands.

Job Evaluation Commission

The job evaluation is a recommendation from the staff, which must be approved by the
line department and by the direction of the organization. The valuation commission serves
to facilitate this approval work, and is made up of the person responsible for the
administration of wages and salaries and analysts, by directors of the relevant areas and,
also, by the interested managers and heads.

This commission reaches a harmonious and integrated solution, which guarantees full acceptance and
Development of the program. The job evaluation committee has two objectives:
a) Technical objective: the commission is formed with elements from different areas of the
organization familiar with the positions that will be evaluated. This guarantees balance
and uniformity in the valuations for all areas of the organization.
b) Political objective: for the participation of elements from all areas of the
organization, valuations are accepted without restrictions.

The job evaluation committee usually consists of:

1. Permanent or stable members: they are the ones who must participate in all the
organization evaluations; for example, the Human Resources manager or the
executive in charge of managing salaries.
2. Provisional members: they are the ones who must give their opinion on the evaluations of the positions.
under their supervision and, therefore, only have a partial role in the plan of
job evaluation.

Job classification
According to the results of the evaluation, the positions are classified and grouped by classes.
This way of organizing the positions aims to facilitate the administration of salaries and
salaries, and allow each class to receive general treatment in terms of salaries,
social benefits, royalties and privileges, status signals, etc.

The classification of positions is determined arbitrarily. To establish salaries, the series

positions are divided into levels or groups (classes of positions), and are assigned bands of
salary categories with maximum and minimum limits. After all, each scale has a
relative degree of importance and all positions contained in it receive the same treatment.

Some job valuation methods tend to classify them automatically, such as

the hierarchical method and the predetermined scales method. Other methods, such as the
point evaluation, they provide values for each position in points, which allows
classify them by classes based on points.
There are several criteria for classifying positions:

1. Point classification: positions are grouped into categories based on

point intervals (see figure 10.30).
2. Classification by career positions: positions are classified in terms of careers.

Clerk I
Clerical Officer II

Office Clerk III

3. Occupational group classification: positions are classified based on criteria of

occupation.

Civil engineer
Electrical engineer

Chemical engineer

4. Classification by service area: positions are classified by area of activity.

Finance Manager

Treasurer

Accountant

Auxiliary Accountant

Cashier, etc.

5. Classification by category: positions are classified based on categories of

graduation. Assistant secretary
Spanish Secretary
Bilingual Secretary
8. Executive Secretary