By establishing a monetary scale for each universal factor, all other jobs in the organization can be evaluated. Summing the monetary value of all factors for a particular job establishes its pay rate.
Benge's factor comparison can be done in 8 steps:.
1.Jobs to be evaluated are ranked. This step assists in developing a better understanding of the values and contributions of each job.
2.From information provided through a market survey, a going rate of pay is assigned to each benchmark job.
3.Using the five compensable factors identified by Benge, each rater privately ranks each benchmark job by each factor, with the lowest number -one- indicating the job receiving the highest level of value for that factor.
4.The job evaluation committee as a whole reviews ratings of each member and comes to a final, agreed upon ranking. If members cannot agree to the ranking of a particular job, it may be necessary to eliminate that job as a benchmark job.
5.Each committee member assigns a monetary value to each factor with the sum of the monetary values for the factors equal to the market or going rate of the pay.
6.A "meeting of minds" average is calculated for each factor of the job.
7.Using the money values for each factor, the committee develops a monetary scale for each factor. All remaining jobs of the organization are compared with the factor scale and through a slotting process, assigned a specific value for each factor. The sum of the monetary values assigned to each job for all factors then becomes the pay for the job.
8.As a financial check, the committee develops a final benchmark job-ranking schedule that compares job ranking, money ranking and monetary value by each factor for each benchmark job.
The weakness of the Benge's method is the difficulty in allocating a specific portion of a rate of pay for a job to each compensable factor. .
Hay's profile method:.
Edward.N.Hay, in 1938 used the factor-comparison approach to determine the worth of managerial and professional jobs in a bank.