hay

Understanding the Administrative, Professional, and Technical Job Evaluation System (Hay)

Presented byMike Dougherty

Director, Human Resources

Administrative, Professional & Technical Job Evaluation System What is job evaluation?

Job evaluation can be defined as “a systematic procedure designed to aid in establishing pay differentials among jobs…”1

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1Compensation: Milkovich, George T. and Jerry M. Newman; BPI/Irwin, 1990; p.

103.

Administrative, Professional & Technical Job Evaluation System

There are four major methods of job evaluation: ranking, classification, factor comparison, and point plans. The University uses the Hay Guide Chart-Profile Method© of job evaluation for administrative, professional, and technical jobs.

Administrative, Professional & Technical Job Evaluation System

The Hay method of job evaluation is generally understood to be a point plan, although Hay itself does not define the guide chart-profile method as a variation of the point method.2

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2Milkovich; p. 125.

Administrative, Professional & Technical Job Evaluation System

At least one current text lists the Hay method as a fifth major method of job evaluation of its own.

Methods of Job Evaluation Ranking

Ranking simply orders the job descriptions from smallest to largest based on the evaluator’s perception of relative value or contribution to the organization’s success.

Alternate Comparison (Hi – Lo) Paired comparison: [n * (n-1)] / 2

Methods of Job Evaluation Ranking

Only workable for a small organization with very few different jobs.

Depends on evaluator consistency – perspectives change over time.

Methods of Job Evaluation Classification

Job descriptions are slotted into a series of classes that cover the range of jobs. Each class has a definition. These definitions are the standards against which the jobs are compared.

Methods of Job Evaluation Classification

Example: GS-5 includes all classes of positions the duties

of which are (1) to perform, under general supervision, difficult and responsible work in office, business, or fiscal administration…

GS-9 includes all classes of positions the duties of which are (1) to perform, under general supervision, very difficult and responsible work along special technical, supervisory, or administrative experience…

Methods of Job Evaluation Factor Comparison

Jobs are compared against other jobs on the basis of how much of some desired factor they possess.

Each job’s factors are ranked against each other job’s factors.

The market pay rate for each job is then allocated among the factors based upon a market pay rate scale.

Methods of Job Evaluation Factor Comparison

Very complex and requires total rework each year to determine the market pay rates.

Can perpetuate equity issues from the market.

Methods of Job Evaluation Point Method

These systems have three common characteristics: Compensable elements Factor degrees are numerically scaled Weights reflecting the relative

importance of each factor

Methods of Job Evaluation Point Method

Compensable elements are those characteristics in the job (not the person) that the organization values, that help it pursue its strategy and achieve its objectives.3

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3Milkovich, George T. & Jerry M. Newman; Compensation, 5th ed.; Irwin, 1996; pp. 130-137.

Administrative, Professional & Technical Job Evaluation System

What is Hay?

Officially known as the Hay Guide Chart-Profile Method of Job Evaluation©, this system utilizes three factors to arrive at a job’s evaluation. The job’s content is the sole basis for the job evaluation.

Administrative, Professional & Technical Job Evaluation System

The three factors are:

Know-How Problem Solving Accountability

Administrative, Professional & Technical Job Evaluation System

The Hay guide charts have been in existence since 1951 and have been used in over 5,000 different organizations worldwide. Interestingly, the Equal Pay Act of 1963 uses “skill, effort, responsibility, and working conditions” as the factors upon which equal work should be determined.4

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4Excerpted from Handbook of Wage and Salary Administration; McGraw-Hill, 1984; in materials presented by Hay.

Administrative, Professional & Technical Job Evaluation System How are jobs evaluated using the

Hay System?

1. Job description questionnaires are completed and signed by the jobholder, the supervisor, and other managerial staff who have responsibility for the position.

2. The job description questionnaire is given to each member of the job evaluation committee for his/her initial evaluation.

Administrative, Professional & Technical Job Evaluation System How are jobs evaluated using

the Hay System?

3. The committee meets with the jobholder and supervisor to explore questions and clarify content.

4. The committee members then compare their individual evaluations and resolve differences that might exist.

Administrative, Professional & Technical Job Evaluation Committee

Name Department CategoryMike Dougherty Human Resources Administrative

Irene Ferguson Dean of Students Administrative

Susan Higgerson

Kent Library Professional

Doug Richards Public Safety Administrative

Jim Settle Residence Life Administrative

Anna Tripp Telecommunications

Professional

Alissa Vandeven Human Resources ProfessionalJanuary 2001

Hay System Factors KNOW-HOW

The sum total of every kind of skill, however acquired, needed for acceptable job performance.

Hay System Factors KNOW-HOW

This sum total which comprises the overall “fund of knowledge” has three dimensions – the requirements for: Practical procedures, specialized

techniques, and learned disciplines. Active, practicing skills in the area of

human relationships.

Hay System Factors KNOW-HOW

Know-how of integrating and harmonizing the diversified functions involved in managerial situations (operating, supporting, and administrative). This know-how may be exercised consultatively as well as executively and involves in some combination the areas of organizing, planning, executing, controlling, and evaluating.

Hay System Factors PROBLEM SOLVING

The original “self starting” thinking required by the job for analyzing, evaluating, creating, reasoning, arriving at and making conclusions. To the extent that thinking is circumscribed by standards, covered by precedents, or referred to others, problem solving is diminished and the emphasis correspondingly is on know-how.

Hay System Factors PROBLEM SOLVING

Problem solving has two dimensions: The environment in which the

thinking takes place. The challenge presented by the

thinking to be done.

Hay System Factors ACCOUNTABILITY

The answerability for an action and for the consequences thereof. It is the measured effect of the job on end results. It has three dimensions in the following order of importance: Freedom to Act – the degree of personal

or procedural control and guidance the jobholder has.

Hay System Factors ACCOUNTABILITY

Job Impact on End Results – ranges from direct to indirect impact on end results by auxiliary, contributory, shared, or primary effects.

Magnitude – indicated by the general dynamic dollar size or accountability area(s) most clearly affected by the job.

Administrative, Professional & Technical Job Evaluation System

What steps are taken to assure that the job evaluation process is fairly applied?Hay periodically retrains the members of the job evaluation committee. A consultant comes to campus, spending a day with the committee discussing the appropriate use of the guide charts and the process of evaluating jobs.

Administrative, Professional & Technical Job Evaluation System

What steps are taken to assure that the job evaluation process is fairly applied?Southeast’s job evaluation results have twice been through the process Hay calls “correlation.” This process tests to see if the committee has applied the Hay method in a consistent manner. The correlation process occurs periodically.

Administrative, Professional & Technical Job Evaluation System What steps are taken to assure

that the job evaluation process is fairly applied?After the initial installation of Hay, the Institutional Research department at the University did a comparative study of how male versus female positions fared in the process. The conclusion that then-director Dr. Steven Chatman arrived at was that there was no sex bias in the system as it was applied at Southeast.

Administrative, Professional & Technical Job Evaluation System What is the distinction between

administrative, professional, and technical positions?

These categories of jobs are established under federal regulations for reporting workforce profiles to the Equal Employment Opportunity Commission and the Department of Education. The category labels serve no other University purpose.

Administrative, Professional & Technical Job Evaluation System What is the distinction

between administrative, professional, and technical positions?

There are approximately 58 administrative staff, 235 professional staff, and 47 technical staff employed by the University.

Administrative, Professional & Technical Job Evaluation System

What role does Hay play in determining salaries?

The University has adopted a policy for determining salary comparisons for administrative and professional positions. This policy can be found in the Business Policy and Procedure Manual of the University in the Personnel section numbered 03-17.

Administrative, Professional & Technical Job Evaluation System

What role does Hay play in determining salaries?

The role of the Hay job points is to provide the relative comparisons about which the salary policy line can be constructed. In essence, the Hay points represent our link to the salary information developed through survey responses.

Administrative, Professional & Technical Job Evaluation System

What role does Hay play in determining salaries?

By using linear regression, a pay policy line is constructed which determines salary range midpoints. Our pay ranges are 50% deep. The decision that a pay range will be 50% deep is purely an administrative decision that has nothing to do with the Hay system.

Administrative, Professional & Technical Job Evaluation System

What role does Hay play in determining salaries?

Once a job is evaluated and the salary for the jobholder is set, Hay has little to do with affecting the ongoing salary of the jobholder unless the job’s evaluation is changed.

Southeast Missouri State University

Important information about Job Evaluation and Salary Administration University Policy and Operating

Procedures Position Classification/Reclassification (03-1

4) Salary Administration (03-16)

New Hire Salary Analysis Regression models Internal comparisons Survey data