2.
Job Evaluation
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JobEvaluation
Evaluation
Job
Workshop
Workshop
Conduct
Conduct
Independent
JE
Independent
JE
&
Slotting
&Sessions
Slotting
Sessions
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.
Design
Design
JobGrade
Grade
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Structure
Structure
JEReport
Report
JE
2008 Hay Group. All Rights Reserved
IS
IS
IS
ISNOT
NOT
Relative
Relative
Judgmental
Judgmental
Absolute
Absolute
Scientific
Scientific
Structured
Structured
Job
JobCentered
Centered
Unstructured
Unstructured
Person
PersonCentered
Centered
Job Evaluation Rules
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Workshop
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Conduct
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Independent
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Independent
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&
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&Sessions
Slotting
Sessions
Design
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JobGrade
Grade
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Structure
Structure
JEReport
Report
JE
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)
2008 Hay Group. All Rights Reserved
Factors Used in the Hay Group Method
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Conduct
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Design
Design
JobGrade
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Structure
Structure
Jobs exist to achieve
an end result
JEReport
Report
JE
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
Know-How
+
Accountability
2008 Hay Group. All Rights Reserved
Problem Solving
Problem Solving
Accountability
Accountability
10
The Eight dimensions which build the total Hay
points for each job
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JE
Guide Chart No. 1
Guide Chart No. 2
Guide Chart No. 3
Know How
Problem Solving
Accountability
Practical
/Technical
Knowledge
Thinking
Environment /
Freedom to Think
Freedom to Act
Planning,
Organizing and
Integrating
(Managerial)
Knowledge
Thinking Challenge
Area of Impact
(Magnitude)
Communicating
and Influencing
Skills
2008 Hay Group. All Rights Reserved
Impact of Job on
End Result
11
Just-noticeable-difference (JND)
Concept in Hay Group job evaluation
Hay Guide Chart Profile Method of Job Evaluation is based on the concept of JustPrepare
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Structure
Structure
Noticeable Difference (JND) scale of 15%
three step differences;
a very obvious difference in job content, needing little or no consideration, without
detailed debate.
two step differences;
after consideration, a job content difference is reasonably clear
JEReport
Report
JE
one step difference;
after careful consideration, a job content
difference can be discerned
No step differences;
no differences in job content
can be detected
100
100
2008 Hay Group. All Rights Reserved
100
100
115
115
132
132
152
152
12
Accountability: Profiles
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Slotting
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Relationship Between Factors - AC to PS
Problem
Solving
Dominant
Accountability
Dominant
Design
Design
JobGrade
Grade
Job
Structure
Structure
JEReport
Report
JE
P2
Pure
Research
P1
Applied
Research
Heavy thinking, low
regard for end results.
2008 Hay Group. All Rights Reserved
=
Staff
Position
A1
A2
A3
Accountability Technical
Typical
Emphasis
Line/
Line/
Staff
Production Production
Comparable emphasis
on thinking and end results (i.e.
providing solutions that are
thoughtful and timely).
A4
Heavy
Production
Emphasis
High emphasis on
end results.
13
The Information Needed For Job Evaluation
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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
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2007 Hay Group. All Rights Reserved
14
1. b. Using Job evaluation element to
evaluate the person competencies
Know-How
Sub-factor
Depth and
breadth of
specialist
knowledge
Managerial
Breadth
Human
Relations
Skills
Evaluation
for Current
Role
Position Definition
Requirement for know
how in practical
procedures,
specialised techniques,
theoretical principles
and other disciplines.
Requirement for know
how in supervision and
management of others,
and in integrating
diverse and unrelated
functions.
Requirement for
interacting with others
and the nature and
complexity of the
exchange.
Total Know-How Points
2007 Hay Group. All Rights Reserved
II
Person
Definition
Evaluation
for Person
Educational
background,
occupational
experience and
other skills
possessed by
the person.
Commentary on Position/Person Fit
Person has required level of technical
Technical Expertise skills, competencies to enable them to
be deployed effectively.
Information Seeking
Commercial
Acumen
Skills in planning,
leading,
organising,
directing and
controlling
persons and
teams.
Skills in
motivating,
influencing and
understanding
others.
Related
Competencies
Team Leadership
II-
Person is lacking in required
managerial breadth, due to
undeveloped team leadership
behaviours.
Developing Others
Influence
Interpersonal
Understanding
Person has required level of human
relations skills, but more sophisticated
influencing strategies required.
Customer Service
Orientation
400
350
Job Value
Person Value
28
1.b. Keeping the right balance between
job and people assessment
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?
Salary
Job Grade
Salary
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.
Job Grade
Job Grade
Salary
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.
Salary
Some guide for quick people assessment.
Is the person
right for the job?
Job Grade
2007 Hay Group. All Rights Reserved
29
2. Basic Rationale for Rewarding People:
What do we reward our people for?
1
Job Analysis
Job Description
Job Evaluation
Job Grade
5
Reward
Management
1
JOB
that
people perform
Total Reward
Philosophy &
Strategy
Allowances
job
ib
PE ution tha
bri
R ta
ng
s t SO
ot
he N
ich
wh
in
Annual
Incentive
Plan
Co
ntr
B
or
AT tes f ent
e al
mp t t
co righ
the
ET
RK
MA
Reward
Pe Ben
rq ef
ui its
si /
te
s
to
lue
Va the e
ye
plo
Em
Base
Salary
Co
s
Co t to t
mp he
any
Long-Term
Incentive
Plan
Salary Survey
Capability Talent Review
Competency/individual
Grade
2007 Hay Group. All Rights Reserved
Performance Management
Individual Performance
4
30
2. Paying for the person and the job
Combined
Option A
Pay for PERSON
(Corporate Rank)
Features
Rewards Personal Grade (PG) for the job
being performed.
Job
JG17
People
PG18
Salary
Used
PG18
PG17
PG17
PG16
PG16
Combined
Option B
Pay for JOB
(Job Grade)
Entry to the job is based on PG (+/-1) and
rewards the individual based on the job
performed.
Job
People
Salary
Used
JG17
PG18
JG17
PG17
JG17
PG16
JG17
Comfort in knowing the PG of the
individuals
Organizations 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
Risks
Cost 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.
What
needs to
be in place
2007 Hay Group. All Rights Reserved
31
Hay job evaluation results for internal &
External remuneration analysis
100
70
100%
Annual Base
Base Salary
Salary (Rp.
(Rp. 000)
000)
Annual
50
80%
40
30
20
10
BASE SALARY ( thousands)
120%
60
P90
90
Q3
80
MD
70
60
50
OUR
40
PAN
COM
TI
RA C
YP
CE
Q1
P10
30
20
10
0
0
0
500
1000
HAY UNITS OF JOB CONTENT
2007 Hay Group. All Rights Reserved
1500
2000
500
1000
1500
2000
2500
HAY UNITS OF JOB CONTENT
32
3. Hay Group Job Evaluation Linkage to
Organization Analysis
K-H
Score
400
350
1 step
2 steps
3 steps
4 Steps
Boss
Boss
Boss
Boss
Subordinates
304
Subordinates
264
Subordinates
230
1 Step 2 Steps 3 Steps 4 Steps -
Subordinates
Unlikely structure [unless boss retiring in very near future]
Subordinate should easily step in to job one step bigger.
Good preparation for succession - some stretch but normal.
A big jump. Will need support.
Large span of Control ; Communication of task only ;
Management decision-making highly centralized
2008 Hay Group. All Rights Reserved
33
3. Evaluations linked to structural
considerations
Designation
Classic Manager/
Subordinate
Relationship
Lean Staff
Missing Level
One on One
Unit Diagram
Common
Characteristics
reasonable span of control
clear channels for communication
balance between subordinates
management delegation
broad span of control
communication processes fuzzy
imbalance between subordinate positions
management sand decision making
highly centralised
large span of control
communication of tasks only
large differentials in subordinate positions
management decision-making highly
centralised
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
2007 Hay Group. All Rights Reserved
KnowHow
Step Difference
% Problem
AccountSolving
ability
1 or 2
3 to 5
5 to 7
0 or 1
1 or 2
34
