Hay Job Methodology

Hay Job Methodology

Purpose - The purpose of the Hay System is to provide a
consistent procedure to evaluate position classifications by:
•Objectively measuring the content of each job compared to
other jobs based on classification factors applied to all jobs;
•Determining its relative worth;
•Establishing equitable pay relationships among all jobs
 Hay Job Methodology
• Benefits - The Hay System provides a structured and
consistent method to evaluate jobs. Using this method
eliminates much of the subjectivity inherent in other
types of compensation systems and ensures that jobs
that compare in value are paid within the same pay
grade.
• Thorough job analysis is the cornerstone of any human
resource system and is used in human resource
practices such as the selection process, salary
administration, and performance management.
 Hay Job Methodology
• Overview - The Hay System uses a point factor
method to evaluate classes. The classes are
evaluated by three primary factors: know how,
problem solving, and accountability. Each
primary factor contains several elements.
• The factors and elements are listed below:
 Hay Job Methodology
Classification Factors : 1) Know how
•Practical / Technical Knowledge - used to recognize
increasing specialization (depth) and/or the
requirement for a greater breadth (scope) of
knowledge.
• Planning, Organizing, & Integrating (Managerial)
Knowledge – knowledge required for integrating
and managing activities and functions.
 Hay Job Methodology
Classification Factors : 1) Know how
•Communicating & Influencing Skills - reflects
skills needed to communicate with and influence
individuals and/or groups within and outside the
organization.
Ex : It reflects the difference (in the context of skill
and experience) between the levels or positions of
the job hierarchy (e.g. between the first line
manager (supervisor), middle management and the
head of the establishment)
 Hay Job Methodology
Classification Factors : 2) Problem solving
•Thinking Environment - Freedom to Think -
reflects the degree to which thinking is constrained
by rules, methods, procedures, precedents, policies,
strategy, etc.
•Thinking Challenge - reflects the complexity of the
problems encountered and the extent to which
original thinking must be employed to arrive at
solutions. Thinking Challenge measures the
complexity of decisions with which a position
is faced.
 Hay Job Methodology
Classification Factors : 3) Accountability
•Freedom to Act - reflects the extent to which the job
/ role decides on the measures and actions to be
taken to achieve the required results.
•Nature of Impact - reflects the nature and degree of
influence the job has on defined end results, as
expressed in Magnitude.
•Magnitude (Area of Impact) - reflects the area of
the organization most clearly affected by the job,
expressed in qualitative or quantitative measures.
 Hay Job Methodology
Classification Factors :
•One other add-on factor, Additional Compensable
Elements, which considers severity of hazard and
frequency of exposure, does not apply to all classes.
•These factors (except Additional Compensable
Elements) are common to all positions within the
State classified service. Every position in the
classified service contains each of the factors to
some degree or level.
 Hay Job Methodology
Classification Factors :
•When a job is evaluated, points are assigned to each
factor based on the degree or level each factor is
present, and a total point value is derived. The total
points assigned to the position determine the grade
and corresponding salary range.
 Hay Job Methodology
Example :
•the weighting that is assigned to the know–how
factor was 80 percent (at the lowest level), followed
by 10 percent to the problem – solving factor and
10 percent to the accountability factor. Here, the
lion’s share of weighting is given to the know –
how element; this is mostly for the education upon
which the total future learning and skills are to be
built on.
 Hay Job Methodology
Example :
•Conversely, the top level (executives) were
appropriated with 35 percent, 25 percent, and 40
percent respectively for the know–how,
problem–solving and accountability factors. Here,
the biggest percentage of weighting was allocated
to the accountability element.
 Hay Job Methodology
Example :
•That is because the ultimate responsibility for
getting the jobs done and achieving satisfactory
performance of the entire organization rests on the
shoulders of top level personnel (managers/
executives) and thus pays recognition to the fact
that they carry additional burdens of responsibility.
 Hay Job Methodology
Example :
•Consequently, this category of people are, largely,
seen as a functional authority and these functions
are absolutely necessary where the
executives/managers are not only the best but may
also be unique in carrying these functions out.