2. Quantitative Systems

Job Evaluation

In large-scale organizations, job evaluations are usually so complex and involves so many jobs such that using a qualitative process is impractical. In such cases, one of two quantitative approaches is usually selected. Both of these approaches break the jobs down into compensable parts so that it becomes possible to evaluate the total worth of a job by adding up the values of its compensable parts.

Factor Comparison

This method of job evaluation, which has fallen into disuse, is based on a process that compares the degree a compensable factor is present in a particular job with the degree to which it is present key benchmark jobs. Called factor comparison, this process first involves identifying these key benchmark jobs and dividing them into their compensable factors; each factor is then assigned a dollar value, based on the job's total worth in the competitive marketplace.

Alternatively, if a market survey is not used, it is possible to divide each key job into component factors by identifying the percentage each factor represents as a part of the whole. When these percentages have been established, comparisons are made to other jobs, also by the compensable factors.

When all jobs have been evaluated, a salary survey of the market is conducted for each of the key benchmark jobs. When salaries have been established for them, other jobs are slotted in at rates that maintain the same percentages.