Factor Comparison is a job evaluation method used to determine fair and competitive compensation by comparing key job factors across roles. It helps organizations in manufacturing, retail, logistics, and facility management establish equitable pay structures based on job responsibilities, required skills, experience, and working conditions. This method ensures internal pay equity and external competitiveness, aiding in workforce retention and motivation.

For companies managing contract workers, gig employees, and blue-collar workforce, factor comparison provides a structured approach to salary benchmarking and payroll management. Businesses use HRMS platforms, compensation analytics, and workforce evaluation tools to streamline job comparisons, align pay scales with industry standards, and maintain compliance with labor regulations. A well-implemented factor comparison system enhances pay transparency, employee satisfaction, and overall HR efficiency.