hi every body i am a student of HR can any one help me with some information or material about Hay’s method of Job evaluation in Compensation & Benefits.
From India, Bangalore
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From India, Bangalore
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Job Evaluation
*Ranking
Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgments of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.
*Classification:
Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are developed mainly along occupational lines.
The standards do not attempt to describe every work assignment of each position in the occupation covered. The standards identify and describe those key characteristics of occupations which are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the occupation to which the standards apply.
*Factor Comparison:
A set of compensable factors is identified as determining the worth of jobs. Typically, the number of compensable factors is small (4 or 5). Examples of compensable factors are:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions
Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain characteristics:
1. Equitable pay (not overpaid or underpaid)
2. Range of the factors (for each factor, some jobs would be at the low end of the factor while others would be at the high end of the factor).
The jobs are then priced, and the total pay for each job is divided into pay for each factor.
*Point Method:
A set of compensable factors is identified as determining the worth of jobs. Typically, the compensable factors include the major categories of:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions
These factors can then be further defined:
1. Skill
a. Experience
b. Education
c. Ability
2. Responsibilities
a. Fiscal
b. Supervisory
3. Effort
a. Mental
b. Physical
4. Working Conditions
a. Location
b. Hazards
c. Extremes in Environment
The point method is an extension of the factor comparison method.
Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.
Jobs are then grouped by total point scores and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.
Hope this helps. All the best.
Rgds
Shara
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*Ranking
Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgments of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.
*Classification:
Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are developed mainly along occupational lines.
The standards do not attempt to describe every work assignment of each position in the occupation covered. The standards identify and describe those key characteristics of occupations which are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the occupation to which the standards apply.
*Factor Comparison:
A set of compensable factors is identified as determining the worth of jobs. Typically, the number of compensable factors is small (4 or 5). Examples of compensable factors are:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions
Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain characteristics:
1. Equitable pay (not overpaid or underpaid)
2. Range of the factors (for each factor, some jobs would be at the low end of the factor while others would be at the high end of the factor).
The jobs are then priced, and the total pay for each job is divided into pay for each factor.
*Point Method:
A set of compensable factors is identified as determining the worth of jobs. Typically, the compensable factors include the major categories of:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions
These factors can then be further defined:
1. Skill
a. Experience
b. Education
c. Ability
2. Responsibilities
a. Fiscal
b. Supervisory
3. Effort
a. Mental
b. Physical
4. Working Conditions
a. Location
b. Hazards
c. Extremes in Environment
The point method is an extension of the factor comparison method.
Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job.
Jobs are then grouped by total point scores and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.
Hope this helps. All the best.
Rgds
Shara
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Hi,
This was a very useful piece of info. Thanks to you all.
I have just finished setting up grades and levels in my current organization. Supposing I have to adopt this method, I have listed the below-mentioned points to start with. Please let me know if I am on the right track.
1. Define the levels and the skills required at that level.
2. Identify the skills of the employees and their capabilities.
3. The skills/capabilities have to be proven, i.e., either the company gives them an opportunity to show their skills or the employees come up with a presentation or a project that brings out additional skills.
4. Both the employees and the employer make the environment conducive to learning and thinking. They have regular interactive sessions, training that would provoke thinking.
5. The employer should create an environment where they are given the freedom to act in the manner mentioned above. The working environment should be employee-friendly.
Let me know if what I have concluded is right. Also, let me know one thing. What is it that this HAY's METHOD is aiming at? Is it a better working environment, a better learning environment, employee satisfaction, or anything else?
Regards,
Soumya Shankar
From India, Bangalore
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16This was a very useful piece of info. Thanks to you all.
I have just finished setting up grades and levels in my current organization. Supposing I have to adopt this method, I have listed the below-mentioned points to start with. Please let me know if I am on the right track.
1. Define the levels and the skills required at that level.
2. Identify the skills of the employees and their capabilities.
3. The skills/capabilities have to be proven, i.e., either the company gives them an opportunity to show their skills or the employees come up with a presentation or a project that brings out additional skills.
4. Both the employees and the employer make the environment conducive to learning and thinking. They have regular interactive sessions, training that would provoke thinking.
5. The employer should create an environment where they are given the freedom to act in the manner mentioned above. The working environment should be employee-friendly.
Let me know if what I have concluded is right. Also, let me know one thing. What is it that this HAY's METHOD is aiming at? Is it a better working environment, a better learning environment, employee satisfaction, or anything else?
Regards,
Soumya Shankar
From India, Bangalore
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I am very thankful for your information regarding Job evaluation, but I would like to know what is it that this HAY's METHOD is aiming at. Is it for the working environment, learning environment, employee satisfaction, or any other beyond the scope mentioned above?
Thank you once again for whatever information you have disseminated.
With regards,
Chinna
From India, Bangalore
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Thank you once again for whatever information you have disseminated.
With regards,
Chinna
From India, Bangalore
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Hi Chinna,
Hay's method is aimed at assessing how much a job can contribute to realizing the organization's objectives (output) and what is required in a job - knowledge, experience, and problem-solving ability - to be able to make that contribution (input/throughput).
From India, Ahmadabad
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Hay's method is aimed at assessing how much a job can contribute to realizing the organization's objectives (output) and what is required in a job - knowledge, experience, and problem-solving ability - to be able to make that contribution (input/throughput).
From India, Ahmadabad
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The Hay Method is the most widely-used job measurement system in the world. Today, it is used by approximately 8,000 public and private sector organizations worldwide to evaluate clerical, trade, technical, professional, managerial, and/or executive level jobs.
In Canada, the Hay Guide Charts are comprised of four standard factors: Know-How, Problem Solving, Accountability, and Working Conditions. These are applied by Hay consultants, trained internal staff, and/or committees to analyze and evaluate the skill, effort, responsibility, and working conditions inherent in any given job.
The Hay Method enables clients to define and compare jobs within and across business units with unsurpassed rigor and accuracy. Hay integrated models can cut across an entire organization or be specific to a distinct group or family of jobs.
Executive Compensation
Superior organizational results are driven by a superior executive management team. Attracting people of the right caliber is a major challenge, and losing talent to competitors creates both discontinuity and long-term problems. Further, the CEO needs effective incentive tools to add focus to his leadership and to let the team know when it has succeeded. Finally, the Board has an important accountability to ensure that executive compensation serves and supports the interests of the stakeholders.
Simply comparing compensation to market practice and making sure that executives are paid "fairly" does not improve business results. Equity and competitiveness are important, but the linkage of executive compensation to results is critical. Further, how senior management rewards link to the recognition and rewards given to people throughout the organization strongly influences success.
We seek to fully understand what the fundamental drivers of successful organizational results are and how they relate to your strategy and operational plans. An appreciation for the management style of the CEO, his/her executive team, and the organizational culture that they want to create is also required.
We use this solid foundation to help both management and the Board design and implement an effective executive compensation package. The objective is to reward the team in a manner that is valued by the incumbents and appreciated by the shareholders or other stakeholders.
From India, Ahmadabad
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In Canada, the Hay Guide Charts are comprised of four standard factors: Know-How, Problem Solving, Accountability, and Working Conditions. These are applied by Hay consultants, trained internal staff, and/or committees to analyze and evaluate the skill, effort, responsibility, and working conditions inherent in any given job.
The Hay Method enables clients to define and compare jobs within and across business units with unsurpassed rigor and accuracy. Hay integrated models can cut across an entire organization or be specific to a distinct group or family of jobs.
Executive Compensation
Superior organizational results are driven by a superior executive management team. Attracting people of the right caliber is a major challenge, and losing talent to competitors creates both discontinuity and long-term problems. Further, the CEO needs effective incentive tools to add focus to his leadership and to let the team know when it has succeeded. Finally, the Board has an important accountability to ensure that executive compensation serves and supports the interests of the stakeholders.
Simply comparing compensation to market practice and making sure that executives are paid "fairly" does not improve business results. Equity and competitiveness are important, but the linkage of executive compensation to results is critical. Further, how senior management rewards link to the recognition and rewards given to people throughout the organization strongly influences success.
We seek to fully understand what the fundamental drivers of successful organizational results are and how they relate to your strategy and operational plans. An appreciation for the management style of the CEO, his/her executive team, and the organizational culture that they want to create is also required.
We use this solid foundation to help both management and the Board design and implement an effective executive compensation package. The objective is to reward the team in a manner that is valued by the incumbents and appreciated by the shareholders or other stakeholders.
From India, Ahmadabad
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Hi Ekta,
I had studied the Hay Method during my first year of MBA and am currently revisiting it. However, I have been struggling to fully understand how to link the Hay Method with executive compensation. Could you please explain how to apply the Hay Method in determining the compensation for senior executives or CEOs?
Thank you.
From India, Ahmadabad
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I had studied the Hay Method during my first year of MBA and am currently revisiting it. However, I have been struggling to fully understand how to link the Hay Method with executive compensation. Could you please explain how to apply the Hay Method in determining the compensation for senior executives or CEOs?
Thank you.
From India, Ahmadabad
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Hi,
I'm Anubha working for SRF e-biz as an HR Executive. To start, I'm one of the privileged ones who get an opportunity to work with Hay Group for Job Evaluation for all SRF employees. You can get yourself registered on their site, i.e., www.haygroup.com.
They mainly focus on 3 factors:
1. Know-how (technical, managerial breadth, and human relation skills)
2. Problem-solving percentage (freedom to act and thinking environment)
3. Accountability (impact, type of impact, and magnitude)
It aims at evaluating a job as it is, not what it would be or was 3 months/years down the line. Go through their site; I'm sure it'll help you.
Cheers!
ANUBHA
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I'm Anubha working for SRF e-biz as an HR Executive. To start, I'm one of the privileged ones who get an opportunity to work with Hay Group for Job Evaluation for all SRF employees. You can get yourself registered on their site, i.e., www.haygroup.com.
They mainly focus on 3 factors:
1. Know-how (technical, managerial breadth, and human relation skills)
2. Problem-solving percentage (freedom to act and thinking environment)
3. Accountability (impact, type of impact, and magnitude)
It aims at evaluating a job as it is, not what it would be or was 3 months/years down the line. Go through their site; I'm sure it'll help you.
Cheers!
ANUBHA
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Hay method of job evaluation.pdf
The Hay Job Evaluation System.doc