From "chinna32286" : 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.
9th June 2005 From India, Bangalore

Job Evaluation


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 judgements of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.


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 are 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 are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:




4.Working Conditions

These factors can then be further defined.


a. Experience









4.Working Conditions



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


10th June 2005
soms23 9

This was a very useful piece of info. Thanks to you all.

i have just finished with setting up grades and levels in my current organisation. Supposing i have to adopt this method, i have listed the below mentioned points to start with. Please let me know if iam in 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 some presentation or some project that brings out the additional skills.

4. Both the employees and the employer make the environment condusive to learning and thinking. They have regular interactive sessions, trainings 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 better working environment or better learning environment, or employee satisfaction or anything else?


Soumya Shankar
10th June 2005 From India, Bangalore
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 working environment or learning environment, or employee satisfaction or any other beyound the scope the above
thank u once againg for what ever information that u have dicemenated
with regards chinna
19th June 2005 From India, Bangalore
Ajmal Mirza 24
Hi Chinna
Hays method is aimed at assessing how much a job can contribute to realising the organisation'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).
20th June 2005 From India, Ahmadabad
Ekta Sharma 6
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 rigour 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 calibre 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 to design and implement an effective executive compensation package. The objective is to reward the team in a manner that is valued by incumbents and appreciated by the shareholders or other stakeholders.
21st June 2005 From India, Ahmadabad
Ajmal Mirza 24
Hi Ekta...
I had studied the Hay method during my MBA first year and am again brushing it up....
I have not been able to fully grasp the idea of linking the Hay method with the executive compensation as the Hay method.
Please explain on how to use the HAY method to work out the compensation of senior executives / CEOs.
21st June 2005 From India, Ahmadabad
I'm Anubha working for SRF e-biz, as HR Executiveto start I'm one of the prevliged ones who get an opportunity to work with Hay guys for JE for all SRF employees .you can get your self registerd on there
they mainly focus on 3 factors :
1 Know how ( technical ,managerial breadth & human relation skills)
2. % of problem solving(freedom to act & thinking eniornment)
3 accountibilty(impact,type of impact & magnitude )
it aims at evaluating a job as on basis and not what it would be or was 3 months /yrs. down the line.
go through there site I'm sure it'll help you...
21st June 2005
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