2. What is HAY?
• The Hay Job Grading Scheme was developed in the early
1950's 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
3. 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
4. Measuring job
INPUT
PROCESS OUTPUT
KNOW-HOW)
• How deep and developed PROBLEM RESPONSIBILITIES
Has to be the technical SOLVING
Knowdleges • Freedom to act
•Analytical
•Management Knowdleges Environment • Impact on the
End results
•Analytical
•Human Relationship •Challenge •Magnitude
skills
5. Job Dimensions
1. KNOW - HOW Technical Know-how
Managerial Know-how
Human Relationship skills
2. PROBLEM SOLVING Thinking Environment
Analytical Challenge
3. ACCOUNTABILITY Freedom to Act
Impact
Magnitude
6. Know-How Dimension
• Definition
All the amount of knowledge, skills,
aptitudes, independent of how it was
obtained, needed for a standard
performance, acceptable for the job
•Know-How has three dimensions:
– Technical and specialized knowledge
– Managerial Know How
– Human Relationship Skills
11. Problem Solving
•Definition
“Self intiated” thinking required for the
job to evaluate, analyze, develop, think,
identify and conclude.
• Problem Solving has two dimensions:
– Thinking Environment
– Analytical Challenge
12.
13.
14. Problem Solving evaluation
Example:
E Analytical 1. 2. 3. 4. 5.
Analytical
I+ REPETITIVE PATTERNED INTERPO- ADAPTIVE UNCHARTED
Environment Challenge
3 LATIVE
264
10% 14% 19% 25% 33%
A. STRICT :ROUTINE
D+
12% 16% 22% 29% 38%
3 12% 16% 22% 29% 38%
(33) B. ROUTINE:
87 14% 19% 25% 33% 43%
: 14% 19% 25% 33% 43%
C. SEMI-ROUTINE
16% 22% 29% 38% 50%
16% 22% 29% 38% 50%
D. STANDARDIZED
19% 25% 33% 43% 57%
E. CLEARLY DEFINED 19% 25% 33% 43% 57%
22% 29% 38% 50% 66%
22% 29% 38% 50% 66%
F. BROADLY DEFINED
25% 33% 43% 57% 76%
25% 33% 43% 57% 76%
G. GENERALLY DEFINED:
29% 38% 50% 66% 87%
29% 38% 50% 66% 87%
H. ABSTRACT DEFINED:
33% 43% 57% 76%
100%
18. Impact
Primary: 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.
19. Impact: Not quantified
Definitions for “non-dimensional” jobs; it is no financial
relevant value associated.
Nominal: Incidental Support
Moderate: Informational / Evidence in one
department
Major: Facilitation / Interpretative, possible
inter-departmental
Critical: Counseling / Diagnostic
20. 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 people
C. CONTRIBUTIVE: Interpretative Services, counseling or served.
facilitation that are used by other staff actions. C. Indirect Services or tasks that are utilized or
S. 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.
23. Salary Politics
Marked
n
atio
aniz any
Org mp
/ co
Individual
Salary
24. 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
26. 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