All job evaluation systems are approximations of job relationships and worth. All systems are subject to error, however, the factor-comparison method provides one of the more accurate and versatile procedures of analysis because of its quantitative approach and unique means of comparison.

Factor-comparison finds a broad spectrum of uses (across functional lines) in hourly, supervisory, professional, and managerial situations, both in factories and offices. It is applicable to both exempt and non-exempt jobs. However, its major application has been in professional and managerial employment.

The rationale of the factor-comparison method is that all jobs are compared against each other, on a continuous point scale within each factor (attribute, or competency), and then arranged in factor hierarchies. Individual factor hierarchies are then combined into one overall hierarchy, or list.

The Practitioner will find it quite similar in many respects to more commonly-used point plans, especially the factor definitions and weights.