job evaluation - by hay

8© 2008 Hay Group. All Rights Reserved

Job Evaluation is a system for ranking jobs logically and fairly by comparing job against job or against a pre-determined scale to determine the relative size of jobs in an organization.

2. Job Evaluation

IS

Relative

Judgmental

Structured

Job Centered

IS

Relative

Judgmental

Structured

Job Centered

IS NOT

Absolute

Scientific

Unstructured

Person Centered

IS NOT

Absolute

Scientific

Unstructured

Person Centered

Prepare

Job Description of

Bencmarked Job

Prepare

Job Description of

Bencmarked Job

ConductIndependent JE

& SlottingSessions


& SlottingSessions

Design

Job Grade

Structure

Design

Job Grade

Structure

Job Evaluation

WorkshopJob Evaluation

Workshop

JE ReportJE Report

2


Job Evaluation Rules

Assumptions used during job evaluation process

jobs not people

“normal” performance

disregard current pay and status

the job as it is now

no understanding : no evaluation

Checks and Balances

collective judgment

consensus

profiles

“sore thumbing” (final review)

Prepare

Job Description of

Bencmarked Job

Prepare

Job Description of

Bencmarked Job


& SlottingSessions


& SlottingSessions

Design

Job Grade

Structure

Design

Job Grade

Structure

Job Evaluation


Workshop

JE ReportJE Report

2


Know-How

+

3

Factors Used in the Hay Group Method

Jobs exist to achieve

an end result

To achieve this end

result, jobholders must

address problems,

create, analyze, and

apply judgment

The jobholder

requires knowledge

and experience

consistent with the

scale and

complexity of the

result to be

achieved

Accountability Accountability Accountability

1

Problem Solving

+Problem Solving

+

2Prepare

Job Description of

Bencmarked Job

Prepare

Job Description of

Bencmarked Job


& SlottingSessions


& SlottingSessions

Design

Job Grade

Structure

Design

Job Grade

Structure

Job Evaluation


Workshop

JE ReportJE Report

2


The Eight dimensions which build the total Hay points for each job

Guide Chart No. 1

Know How

Guide Chart No. 2

Problem Solving

Guide Chart No. 3

Accountability

Practical /Technical Knowledge

Planning, Organizing and Integrating (Managerial) Knowledge

Communicating and Influencing Skills

Thinking Environment / Freedom to Think

Thinking Challenge

Freedom to Act

Area of Impact (Magnitude)

Impact of Job on End Result

Prepare

Job Description of

Bencmarked Job

Prepare

Job Description of

Bencmarked Job


& SlottingSessions


& SlottingSessions

Design

Job Grade

Structure

Design

Job Grade

Structure

Job Evaluation


Workshop

JE ReportJE Report

2


“Just-noticeable-difference” (JND) Concept in Hay Group job evaluation

100100100 100100100115115115

132132132152152152No step differences;

no differences in job content

can be detected

one step difference;

after careful consideration, a job content

difference can be discerned

two step differences;

after consideration, a job content difference is reasonably clear

three step differences;

a very obvious difference in job content, needing little or no consideration, without

detailed debate.

Hay Guide Chart Profile® Method of Job Evaluation is based on the concept of Just-

Noticeable Difference (JND) scale of 15%Prepare

Job Description of

Bencmarked Job

Prepare

Job Description of

Bencmarked Job


& SlottingSessions


& SlottingSessions

Design

Job Grade

Structure

Design

Job Grade

Structure

Job Evaluation


Workshop

JE ReportJE Report

2


Relationship Between Factors - AC to PS

Accountability

Dominant

P2 P1 = A1 A2 A3 A4Pure

Research

Applied

Research

Staff

Position

Accountability

Emphasis

Staff

Technical

Line/

Production

Typical

Line/

Production

Heavy

Production

Emphasis

Problem

Solving

Dominant

High emphasis on

end results.

Comparable emphasis

on thinking and end results (i.e.

providing solutions that are

thoughtful and timely).

Heavy thinking, low

regard for end results.

Accountability: Profiles

Prepare

Job Description of

Bencmarked Job

Prepare

Job Description of

Bencmarked Job


& SlottingSessions


& SlottingSessions

Design

Job Grade

Structure

Design

Job Grade

Structure

Job Evaluation


Workshop

JE ReportJE Report

2


The Information Needed For Job Evaluation

Information About a Job Typically Comes From:

The job description (up to date, clear picture of what the job must achieve, and clear information to quickly differentiate the job from all other jobs in the organization)

The overall knowledge and understanding of jobs, and what they must produce towards achieving the organisation objectives, known to the members of the JE Committee

Constructive discussions (at JE Committee meetings) to achieve full clarity about the expected role, and the expected outputs from each job

Prepare

Job Description of

Bencmarked Job

Prepare

Job Description of

Bencmarked Job


& SlottingSessions


& SlottingSessions

Design

Job Grade

Structure

Design

Job Grade

Structure

Job Evaluation


Workshop

JE ReportJE Report

3


350400Total Know-How Points

Customer Service Orientation

Interpersonal Understanding

Person has required level of human relations skills, but more sophisticated influencing strategies required.

Influence

3

Skills in motivating, influencing and understanding others.

3

Requirement for interacting with others and the nature and complexity of the exchange.

Human Relations Skills

Developing Others

Person is lacking in required managerial breadth, due to undeveloped team leadership behaviours.

Team Leadership

II-

Skills in planning, leading, organising, directing and controlling persons and teams.

II

Requirement for know-how in supervision and management of others,

and in integrating diverse and unrelated functions.

Managerial Breadth

Commercial Acumen

Information Seeking

Person has required level of technical skills, competencies to enable them to be deployed effectively.

Technical Expertise

F

Educational background, occupational experience and other skills possessed by the person.

F

Requirement for know-how in practical procedures, specialised techniques, theoretical principles and other disciplines.

Depth and breadth of specialist knowledge

Commentary on Position/Person FitRelated

CompetenciesEvaluation for Person

Person Definition

Evaluation for Current

RolePosition Definition

Know-HowSub-factor

350400Total Know-How Points

Customer Service Orientation

Interpersonal Understanding

Person has required level of human relations skills, but more sophisticated influencing strategies required.

Influence

3

Skills in motivating, influencing and understanding others.

3

Requirement for interacting with others and the nature and complexity of the exchange.

Human Relations Skills

Developing Others

Person is lacking in required managerial breadth, due to undeveloped team leadership behaviours.

Team Leadership

II-

Skills in planning, leading, organising, directing and controlling persons and teams.

II

Requirement for know-how in supervision and

and in integrating diverse and unrelated functions.

Managerial Breadth

Commercial Acumen

Information Seeking

Person has required level of technical skills, competencies to enable them to be deployed effectively.

Technical Expertise

F

Educational background, occupational experience and other skills possessed by the person.

F

Requirement for know-how in practical procedures, specialised techniques, theoretical principles and other disciplines.

Depth and breadth of specialist knowledge

Commentary on Position/Person FitRelated

CompetenciesEvaluation for Person

Person Definition

Evaluation for Current

RolePosition Definition

Know-HowSub-factor

1. b. Using Job evaluation element to evaluate the person competencies

Job Value Person Value


1.b. Keeping the right balance between job and people assessment

If in the last 1-2 years the incumbent has been able to perform

the majority of accountabilities and deliver the value expected by

the job (and company), most likely the person is already at the

designated job grade.

If in the last 1-2 years the incumbent fell short of a few

accountabilities that the job has to deliver, the incumbent may be

in the learning curve of the job. Therefore the incumbent may be

put in the designated job grade, but paid in the lower range of the

salary scale.

If in the last 1-2 years the incumbent fell short of some

accountabilities and value that the job has to deliver, the

incumbent may be put in a job grade lower than its designated

job grade (and vice versa). This is probably equivalent to a 1 JND

step difference between job and person.

If in the last 1-2 years the incumbent fell short of many of the

accountabilities that the job need to perform, the person may be

lower by 2 JND steps or more against the designated job grade.

Is the person the right fit for the job?

Job Grade

Sala

ry

Job Grade

Sala

ry

Job Grade

Sala

ry

Job Grade

Sala

ry Is the person

right for the job?

Some guide for quick people assessment….


2. Basic Rationale for Rewarding People:

What do we reward our people for?

Job Analysis

Job DescriptionJob Evaluation

Job Grade

Capability Talent Review

Competency/individual Grade

Performance Management

Individual Performance

1 2

3 4

5

Base

Salary

Annual

Incentive

Plan

Long-Term

Incentive

Plan

Benefits/

Perquisites

Cost to theCompany

Valu

e to

the

Em

plo

yeeAllowances

Reward Management

Reward

JOB that

people perform

1

3

2C

ontrib

utio

n that a

PE

RS

ON

brings

to the jo

b

MAR

KET

in which

ATB

competes for

the right talent

Total Reward

Philosophy &

Strategy

Salary Survey

5


What

needs to

be in place

Comfort in knowing the PG of the

individuals

Organization‟s ability to move people that

are performing jobs smaller than their PG,

and dismiss non performers.

Benefits Easy to move people around.Getting the right return from your salary

cost.

Potential

RisksCost inflation.

May create feeling of seniority culture

(service years).

Limited room for rotation which may make

people stuck in a smaller job for a

prolonged period of time.

Features Rewards Personal Grade (PG) for the job

being performed.

Entry to the job is based on PG (+/-1) and

rewards the individual based on the job

performed.

JG17 PG17

PG16

PG18

PG17

PG16

PG18

Job People Salary

Used

JG17 PG17

PG16

PG18

JG17

JG17

JG17

Job People Salary

Used

Pay for PERSON

(Corporate Rank)

Pay for JOB

(Job Grade)

Combined

Option A

Combined

Option B

2. Paying for the person and the job


Hay job evaluation results for internal &

External remuneration analysis

0

10

20

30

40

50

60

70

0 500 1000 1500 2000

HAY UNITS OF JOB CONTENT

120%

100%

80%

120%

100%

80%

An

nu

al

Ba

se

Sa

lary

(R

p.

00

0)

An

nu

al

Ba

se

Sa

lary

(R

p.

00

0)

0

10

20

30

40

50

60

70

80

90

100

0 500 1000 1500 2000 2500

HAY UNITS OF JOB CONTENTB

AS

E S

ALA

RY

(£

th

ou

san

ds)

P90

Q3

MD

Q1

P10

OUR COMPANY PRACTICE

0

10

20

30

40

50

60

70

80

90

100

0 500 1000 1500 2000 2500

HAY UNITS OF JOB CONTENTB

AS

E S

ALA

RY

(£

th

ou

san

ds)

P90

Q3

MD

Q1

P10

OUR COMPANY PRACTICE


400

350

304

264

230

Boss

1 step 2 steps 3 steps 4 Steps

Boss Boss

K-HScore

3. Hay Group Job Evaluation Linkage to

Organization Analysis

1 Step - Unlikely structure [unless boss retiring in very near future]

Subordinate should easily step in to job one step bigger.

2 Steps - Good preparation for succession - some stretch but “normal”.

3 Steps - A big jump. Will need support.

4 Steps - Large span of Control ; Communication of task only ;

Management decision-making highly centralized

Subordinates

Subordinates

Subordinates

Boss

Subordinates


3. Evaluations linked to structural considerations

Common Step Difference Designation Unit Diagram Characteristics Know-

How % Problem

Solving Account-

ability

Classic Manager/ Subordinate Relationship

reasonable span of control

clear channels for communication

balance between subordinates

management delegation 2 1 3

Lean Staff

broad span of control

communication processes fuzzy

imbalance between subordinate positions

management sand decision making

highly centralised

3 1 or 2 3 to 5

Missing Level

large span of control

communication of tasks only

large differentials in subordinate positions

management decision-making highly

centralised

4 2 5 to 7

One on One

One subordinate

boss/subordinate function as a team

usually a temporary „grooming‟ position

for subordinate prior to taking over the top

position

appropriate where criticality of top job

dictates (i.e. CEO) a split between

external focus and internal focus

1 0 or 1 1 or 2

job evaluation - by hay

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