Job Evaluations & the Hay Method Open Mic Session 8.20.17 & 8.22.17 Sara Anderson Job Evaluations - WHAT A systematic process to assess the relative worth (or value) of jobs in an organization. Often helpful to hire an external consultant to perform this work to limit subjectivity. It is NOT: Job Analysis – examine the job tasks and responsibilities for writing the job description. Job Analysis is needed to do a Job Evaluation. Job Pricing – put a dollar amount on the worth of a job (create pay grades and ranges). Job Evaluation is needed to do Job Pricing. Job Evaluations - WHY • Communicates to employees there is a fair & equitable compensation system in place. • Used to determine which positions are similar when it comes to pay & work assignments (allows us to map & align jobs within company.) • Used to determine appropriate pay or salary grades. • Useful information for development of job descriptions. • Helps recruiters to better source candidates & match skills to jobs. Job Evaluations - HOW • Analyze each position's tasks, responsibilities, knowledge, and skill requirements to determine the value of the job to the employer and provide an internal ranking of the jobs. • Four methods: • Non-quantitative: doesn’t produce precise numerical score, based on hierarchy • Job ranking – hierarchy based on value to company, simplest method. • Job Classification – job grouping by grade (government) • Quantitative: produces specific score based on job factors • Point Factor – most popular, based on compensable factors. • Factor Comparison – combines ranking and point methods. Hay Method* Factor Comparison Method Identify 5-8 key (benchmark) jobs Identify job factors *typically 5 or 3 Rank key jobs Assign $ to each key job, based on $ per factor Compare unique jobs with key jobs by factor to determine $ Hay Method aka: Hay Group Guide Chart/Profile Method • 3 Compensable Factors (each with sub-factors) • Know-How • Practical/technical knowledge • Planning, organizing, and integrating (managerial) knowledge • Communicating and influencing skills • Accountability • Freedom to act • Scope • Impact • Problem Solving • Thinking environment • Thinking challenges • A unique aspect of the Hay Group job evaluation method is that the relative weight of the factors is driven by the size and the nature of the job. For example, higher level jobs have higher weight on accountability while lower level positions tend to be more know-how weighted. ~ Hay Group http://www.haygroup.com/us/
