Understanding the Hay Job Evaluation Method: How Are Points and Percentages Allocated?

Dear Seniors,

I would appreciate it if you could let me know the JOB EVALUATION BY HAY CHART PROFILE METHOD. I know that this is divided into four factors:

1. KNOW HOW
2. PROBLEM SOLVING
3. ACCOUNTABILITY
4. PHYSICAL ENVIRONMENT/WORKING CONDITIONS.

My Questions are:
1. How many dimensions are these factors subdivided into, and what is the level of points?
2. What percentage should be allotted to each factor? Is there any specific rule, such as 50% for Know How and the remaining for other factors? If so, how are the points allocated?
3. What is the use of the Weber formula in the Hay Method?
4. What are the limitations of promotions as per the Hay method, and if so, why?

I look forward to your feedback.

Regards,
Saji

Hello Saji,

I can only subscribe following information and methodology. Hay Group's Job Evaluation methodology helps bring together the right people, jobs, and structures to execute their strategies.

Hay Guide Chart Methodology focuses on three core factors and eight sub-factors:
Using these 8 sub-factors, Hay conducts evaluations for all the jobs. The outcome is a one-line rationale for each evaluation. The evaluations will be reviewed by a steering committee and may also include the involvement of heads of departments.

This Job Evaluation system provides a consistent and objective framework to analyze organizational structures, evaluate people and jobs, define career progressions, develop reward programs, and manage human resources more effectively.

Factors:
Know How
Technical know-how
Management breadth
Human relations skills
Problem Solving
Thinking environment
Thinking challenge
Accountability
Thinking environment
Area of impact
Nature of impact

Remaining methodology in each factor is constituted of sub-factors with proper point weightages, and degree levels are properly defined. While evaluating jobs, each degree level and points are selected as per matching definitions.

Attached is one sample that is useful in understanding the methodology. There are many point factors rating scales from different consulting companies such as Ernst & Young, Mercer, Watson Wyatt, etc. They adopt similar methodologies. What is important is principles and methodologies and their architecture compatible as per compensation philosophies of the companies. These are customized job evaluation methodologies instead of following the brand of any particular company like Hay Group, etc., does not make any sense if you have in-house expertise to develop your own Job Evaluation System because this system needs updating and enhancement from time to time, which is expensive in light of the Hay Group and other branded Job Evaluations cost more than INR 20,00,000 plus training cost and updating, etc.

Regards

Captain

Captain,

This information has been very useful, but I still have some doubts. Is it possible for you to provide your personal email ID? I am interested in exploring more.

Can you please provide more details on the following statement:

"Definition and points allotment to each degree level."

Regards,

Saji

Hi Friend,

My attachment describes the 80% point rating factor job evaluation method. I only did not add the degree level definitions that you have to work out to design your customized methodologies.

Moreover, let me inform you frankly that this kind of know-how cannot be learned on the internet. You have to sit with experts and understand:
- What are the steps and stages of compensation management?
- How are these steps linked with job analysis, job descriptions, and finally job evaluation?
- How is the salary grade structure prepared?
- How is a salary survey conducted to update salary grades with market prices?
- How are job weightages and job families grouped, and job evaluation points awarded?

These are huge exercises that require expertise, and it is only possible if you undergo some training on these subjects. Remember, half knowledge is dangerous.

Captain

Hi Saji,

I did have some details on Incentive Plans for Managers, which I thought may be useful to you in your research. I'm attaching it here.

Regards,
Aditi