What is HAY?• The Hay Job Grading Scheme was developed in the early 1950s by E. N. Hay and Associates. It is a scheme which is based on the "points factor" approach. This is a common approach to job grading.• It is the most common job evaluation system in all areas of activity – private, public, for-profit and non-profit.• Evaluate JOB not people who are working on that specific job• It is NOT based on performance, education, skills or current salary
Why we need Hay?• The general purpose for carrying out job evaluations using this or similar methods is to enable organizations to map all their roles in a manner that delivers the following key benefits – Recognizing equivalent levels for the purposes of salary and benefit grading/banding – Improved succession planning – Creation of more useful and focused job descriptions
Measuring jobINPUT PROCESS OUTPUTKNOW-HOW)• How deep and developed PROBLEM RESPONSIBILITIESHas to be the technical SOLVINGKnowdleges • Freedom to act •Analytical•Management Knowdleges Environment • Impact on the End results •Analytical•Human Relationship •Challenge •Magnitude skills
Job Dimensions1. KNOW - HOW Technical Know-how Managerial Know-how Human Relationship skills2. PROBLEM SOLVING Thinking Environment Analytical Challenge3. ACCOUNTABILITY Freedom to Act Impact Magnitude
Know-How Dimension• DefinitionAll the amount of knowledge, skills,aptitudes, independent of how it wasobtained, needed for a standardperformance, acceptable for the job•Know-How has three dimensions: – Technical and specialized knowledge – Managerial Know How – Human Relationship Skills
Problem Solving•Definition“Self intiated” thinking required for thejob to evaluate, analyze, develop, think,identify and conclude.• Problem Solving has two dimensions: – Thinking Environment – Analytical Challenge
Accountability•DefinitionAccountability is the factor utilized toquantify the jobs results• Accountability has three dimensions: – Freedom to Act – Impact – Magnitude
ImpactPrimary: The impact’s direction and control.Shared: Partnership and common responsibilities with similar jobs and other functions from the organization. There were not be shared the “supervisor” or the “ subordinate”.Contributive: Counseling Suport or services provided.Away (???): This level is inferior to the “contributive”. It is far from the selected area of magnitude.
Impact: Not quantifiedDefinitions for “non-dimensional” jobs; it is no financialrelevant value associated.Nominal: Incidental SupportModerate: Informational / Evidence in one departmentMajor: Facilitation / Interpretative, possible inter-departmentalCritical: Counseling / Diagnostic
Magnitude and Impact (N) (1) Very small (2) Small (3) Medium (4) Medium-Big (5) Big Magnitude Not quantified Equivalent AMI USD 50 – 500 K USD 550 K – 5 M USD 5 - 50 M USD 50 – 500 M USD 500 M – 5 B Impact A B C D A C S P R C S P A C S P A C S P A C S P K =thousants M = milllion B = billion IMPACT: EXPLANATION:A.????? : Informative Services, evidences and occasional, in A. Indirect Support services, that don’t have a clear order to be utilized by the others to achieve an important result. quantified effect to the activities or peopleC. CONTRIBUTIVE: Interpretative Services, counseling or served. facilitation that are used by other staff actions. C. Indirect Services or tasks that are utilized orS. SHARED: Participate together with others (except supervisor finalized by other roles. and subordinate), inside or outside the organization, to do an S. Non-standard Services or tasks that clearly have action. an effect to the end results.P. PRIMARY: Impact’s Control for end results, there where the P. Management role for services provided and shared responsibilities for other roles are secondary. tasks.
Salary Politics Marked n atio aniz any Org mp / co Individual Salary
Hay Limits:• Complicated Matrix to be scored• Accent on Management’s Know How• Reflect hierarchy and budget• Not applied in educational field – team approach• Instant evaluation system – not looking to responsibilities development
Steps in Process• Plan for Hay Implementation –• Review all JDs• Organize Grading Committee• Training for Grading Committee• Grade all JDs• Ask for SMT/RO review and approval• Salary Survey and Salary Scale