Instructions For Doing The Factor Comparison Job Evaluation

Instructions For Doing The Factor Comparison Job Evaluation Exercise

Job specifications are listed for various positions including Universal Teller, Deposit Service Representative, File Clerk, Coin Processor, Document Sorter, Statement Bookkeeper, Secretary (Trust), Switchboard Operator, Supervisor, Supervisor (universal teller), and Staff Accountant. The exercise involves using the universal factors of Benge—Working conditions, Mental Demands, Physical Demands, Skill, and Responsibility—to create a master schedule. This entails ranking the positions within each dimension, breaking down their salaries across these dimensions so that they sum to the total wage, and then applying the schedule to estimate wages for two other positions.

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In performing the factor comparison job evaluation exercise, a systematic approach to analyzing and ranking positions based on established job factors is essential to ensuring equitable and consistent compensation. The process begins with meticulous collection of detailed job specifications and descriptions, which form the core data for evaluation. The positions under review—ranging from universal tellers to staff accountants—each carry unique responsibilities, skill requirements, and working conditions that influence their relative worth within the organization.

The primary step involves adopting Benge’s universal factors—Working Conditions, Mental Demands, Physical Demands, Skill, and Responsibility—as the evaluation criteria. These factors encapsulate core aspects of job complexity, effort, and working environment, providing a comprehensive framework for comparison. Each position must be carefully ranked within each factor based on the extent or level of challenge, difficulty, or exposure involved. For instance, a supervisor might rank higher on Responsibility and Mental Demands due to decision-making duties, whereas a clerk might rank lower due to limited independent judgment and simpler tasks.

Once the positions are ranked within each factor, the next step involves developing a master schedule. This schedule allocates a portion of the salary to each dimension proportional to its importance and the position’s level on that factor. The sum of these allocations must equate to the total salary for each position, ensuring consistency and fairness. Typically, the salary breakdown is derived through a combination of relative ranking and predetermined weighting schemes, which reflect the significance of each factor in determining job worth.

Applying this methodology, the evaluation can proceed as follows: Starting with the benchmark jobs—Universal Teller, File Clerk, Switchboard Operator, and Supervisor (Universal Tellers)—their salaries are used as reference points. These salaries serve as the baseline for determining the weightings and allocations in the master schedule. For example, if a supervisor’s salary is significantly higher than that of a clerk, the schedule will allocate more of the salary proportionally to factors deemed responsible for this difference—such as Responsibility and Skill.

Subsequently, the evaluation extends to other positions, adjusting their salaries based on the established schedule. For instance, to estimate the wage of a Deposit Services Representative or a Statement Bookkeeper, the positions are compared against the benchmark jobs. The adjustments rely on the relative rankings; a role that demands more responsibility or involves higher mental demands will be assigned a proportionally higher wage component within the master schedule.

The critical exercise involves not only constructing the master schedule but also testing its robustness by applying it to positions outside the benchmark group. By choosing two additional positions—say, the File Clerk and Coin Processor—an evaluator can demonstrate how well the schedule predicts or aligns with actual wages. This validation process helps identify whether the factor weights and rankings accurately reflect the organizational pay structure or need refinement.

Overall, this factor comparison approach fosters a disciplined, transparent, and equitable system for job evaluation and wage determination. It emphasizes the importance of precise job analysis, careful ranking, and logical allocation of pay components. Practitioners must ensure consistency in ranking, objectivity in weighting, and validity in applying the schedule across various positions to uphold fairness and competitiveness in compensation practices.

References

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