2.

Job Evaluation

Prepare
Prepare
Job Description of
Job Description of
BencmarkedJob
Bencmarked Job
Job Evaluation is a system for ranking jobs logically and fairly
JobEvaluation
Job Evaluation
by comparing job against job or against a pre-determined scale
2 Workshop
Workshop

Conduct
to determine the relative size of jobs in an organization.
Conduct
Independent JE
Independent
& JE
Slotting
&Sessions
Slotting
Sessions

Design
Design
JobGrade
Grade
Job
Structure
Structure
IS
IS IS
ISNOT
NOT
JEReport
JE
Report
Relative
Relative Absolute
Absolute
Judgmental
Judgmental Scientific
Scientific
Structured
Structured Unstructured
Unstructured
Job
JobCentered
Centered Person
PersonCentered
Centered

© 2008 Hay Group. All Rights Reserved 8

 Job Evaluation Rules

Prepare
Prepare
Job Description of
Job Description of
BencmarkedJob
Bencmarked Job
Assumptions used during job evaluation process
2
JobEvaluation
Job Evaluation
Workshop
 jobs not people
Workshop

Conduct
Conduct
Independent
Independent
&
JE
JE
Slotting
 “normal” performance
&Sessions
Slotting
Sessions

Design
Design
 disregard current pay and status
JobGrade
Grade
Job
Structure


Structure
the job as it is now
JEReport
Report
JE

 no understanding : no evaluation

Checks and Balances

 collective judgment
 consensus
 profiles
 “sore thumbing” (final review)

© 2008 Hay Group. All Rights Reserved 9

 Factors Used in the Hay Group Method

Prepare
Prepare
Job Description of
Job Description of
BencmarkedJob
Bencmarked Job 1 2 3
JobEvaluation
Job Evaluation
2 Workshop
Workshop

Conduct To achieve this end The jobholder

Conduct
Independent
Independent
JE
JE Jobs exist to achieve
& Slotting
&Sessions
Slotting
result, jobholders must requires knowledge
Sessions
an end result
Design
Design
JobGrade
Job
Grade address problems, and experience
Structure
Structure
create, analyze, and consistent with the
JEReport
JE
Report
apply judgment scale and
complexity of the
result to be
achieved

Know-How
+
Problem Solving Problem Solving
+ +
Accountability Accountability Accountability
© 2008 Hay Group. All Rights Reserved 10
 The Eight dimensions which build the total Hay
points for each job

Prepare
Prepare
Job Description of
Job Description of
BencmarkedJob
Bencmarked Job
Guide Chart No. 1 Guide Chart No. 2 Guide Chart No. 3
JobEvaluation
Job Evaluation
2 Workshop
Workshop

Conduct
Conduct
Know How Problem Solving Accountability
Independent JE
Independent
& JE
Slotting
&Sessions
Slotting
Sessions

Design
Design
JobGrade
Grade
Job
Structure
Structure Practical Thinking
JEReport
Report
/Technical Environment / Freedom to Act
JE
Knowledge Freedom to Think

Planning,
Organizing and Area of Impact
Integrating Thinking Challenge
(Magnitude)
(Managerial)
Knowledge

Communicating Impact of Job on

and Influencing End Result
Skills

© 2008 Hay Group. All Rights Reserved 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 Just-
Prepare
Prepare
Job Description of
Job Description of
BencmarkedJob
Bencmarked Job
Noticeable Difference (JND) scale of 15%
JobEvaluation
Job Evaluation
2 Workshop
Workshop three step differences;
Conduct
Conduct
Independent JE
a very obvious difference in job content, needing little or no consideration, without
Independent
& JE
Slotting
&Sessions
Slotting
Sessions detailed debate.
Design
Design
JobGrade
Grade
Job
Structure
Structure 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 152
152
can be detected 132
132
115
115
100
100 100
100
© 2008 Hay Group. All Rights Reserved 12
 Accountability: Profiles

Prepare
Prepare
Job Description of
Job Description of
BencmarkedJob
Bencmarked Job Relationship Between Factors - AC to PS
2
JobEvaluation
Job Evaluation
Workshop
Workshop
Problem
Conduct
Conduct
Independent JE
Solving Accountability
Independent
& JE
Slotting
&Sessions
Slotting
Sessions
Dominant Dominant
Design
Design
JobGrade
Grade
Job
Structure
Structure

JEReport
Report
JE

P2 P1 = A1 A2 A3 A4
Pure Applied Staff Accountability Technical Typical Heavy
Research Research Position Emphasis Line/ Line/ Production
Staff Production Production Emphasis

Heavy thinking, low Comparable emphasis

regard for end results. High emphasis on
on thinking and end results (i.e. end results.
providing solutions that are
thoughtful and timely).

© 2008 Hay Group. All Rights Reserved 13

 The Information Needed For Job Evaluation

Job
Prepare
Prepare
JobDescription
Descriptionofof
BencmarkedJob
Bencmarked Job
Information About a Job Typically Comes From:
JobEvaluation
Job Evaluation
Workshop
Workshop
 The job description (up to date, clear picture of what the
Conduct
Conduct
Independent
Independent JE
JE
job must achieve, and clear information to quickly
3 &Slotting
Slotting
&Sessions
Sessions
differentiate the job from all other jobs in the organization)
Design
Design
JobGrade
Grade
Job
Structure
Structure
 The overall knowledge and understanding of jobs, and
JEReport
JE Report
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

© 2007 Hay Group. All Rights Reserved 14

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

Evaluation
Know-How Person Evaluation Related
Position Definition for Current Commentary on Position/Person Fit
Sub-factor Definition for Person Competencies
Role
Depth and Requirement for know - Educational Person has required level of technical
breadth of how in practical background, Technical Expertise skills, competencies to enable them to
specialist procedures, occupational be deployed effectively.
knowledge specialised techniques, experience and
theoretical principles F other skills F Information Seeking
and other disciplines. possessed by
the person. Commercial
Acumen
Managerial Requirement for know- Skills in planning, Person is lacking in required
Breadth how in supervision and leading, Team Leadership managerial breadth, due to
management of others, organising, undeveloped team leadership
and in integrating
diverse and unrelated
II directing and
controlling
II- behaviours.

functions. persons and Developing Others

teams.
Human Requirement for Skills in Influence Person has required level of human
Relations interacting with others motivating, relations skills, but more sophisticated
Skills and the nature and influencing and Interpersonal influencing strategies required.
complexity of the 3 understanding 3 Understanding
exchange. others.
Customer Service
Orientation

Total Know-How Points 400 350

Job Value Person Value

© 2007 Hay Group. All Rights Reserved 28

 1.b. Keeping the right balance between
job and people assessment
Some guide for quick people assessment….

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. 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

Salary
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 Job Grade
accountabilities and value that the job has to deliver, the
incumbent may be put in a job grade lower than its designated

Salary
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 Job Grade
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? Is the person
Salary

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?

Job Analysis Job Evaluation

1 Job Description Job Grade 2
5
Reward
Management

1 Co
s
JOB Co t to t
that mp he
Base any
people perform
Salary

Va the e
Total Reward
Pe Ben

Em

lue
Philosophy & rq ef

plo
Strategy ui its

to
si /

ye
te
Allowances s
MA

Reward Annual Long-Term

R ta
he N
RK
3

PE ution tha
2
s t SO
job

Incentive Incentive
co righ
the

ET
mp t t
AT tes f ent

Plan
ot
B

Plan
e al

ib
in

ntr
wh

ng
Co
or

bri
ich

5
Salary Survey

Capability Talent Review Performance Management

3 Individual Performance
4
Competency/individual
Grade
© 2007 Hay Group. All Rights Reserved 30
 2. Paying for the person and the job

Pay for PERSON Combined Combined Pay for JOB

(Corporate Rank) Option A Option B (Job Grade)

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

Features Rewards Personal Grade (PG) for the job
rewards the individual based on the job
being performed.
performed.
Job People Salary
Job People Salary Used
Used
PG18 PG18 PG18 JG17

JG17 PG17 PG17 JG17 PG17 JG17

PG16 PG16 PG16 JG17

What Organization‟s ability to move people that

Comfort in knowing the PG of the
needs to are performing jobs smaller than their PG,
individuals
be in place and dismiss non performers.
Getting the right return from your salary
Benefits Easy to move people around.
cost.
Potential Cost inflation. Limited room for rotation which may make
Risks May create feeling of seniority culture people stuck in a smaller job for a
(service years). prolonged period of time.

© 2007 Hay Group. All Rights Reserved 31

 Hay job evaluation results for internal &
External remuneration analysis

100
70
P90
90
120% Q3
60
80

BASE SALARY (£ thousands)

MD
100% 70
50 Q1
CE
000)

TI
(Rp. 000)

60
40
80%
YPRA C P10
PAN
Salary (Rp.

50
COM
OUR
Base Salary

30 40
Annual Base

30
20
Annual

20
10
10

0 0
0 500 1000 1500 2000 0 500 1000 1500 2000 2500
HAY UNITS OF JOB CONTENT HAY UNITS OF JOB CONTENT

© 2007 Hay Group. All Rights Reserved 32

 3. Hay Group Job Evaluation Linkage to
Organization Analysis
K-H
Score 1 step 2 steps 3 steps 4 Steps

400 Boss Boss Boss Boss

350 Subordinates

304 Subordinates

264 Subordinates

230 Subordinates

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

© 2008 Hay Group. All Rights Reserved 33

 3. Evaluations linked to structural
considerations

Common Step Difference

Designation Unit Diagram Characteristics Know- % Problem Account-
How Solving ability
Classic Manager/  reasonable span of control
Subordinate  clear channels for communication
Relationship  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
3 1 or 2 3 to 5
highly centralised

Missing Level  large span of control

 communication of tasks only
 large differentials in subordinate positions
 management decision-making highly
4 2 5 to 7
centralised

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
1 0 or 1 1 or 2
 appropriate where criticality of top job
dictates (i.e. CEO) a split between
external focus and internal focus

© 2007 Hay Group. All Rights Reserved 34