the integration that job evaluation brings to organisations an integrated approach t… · 1. about...

The Integration that Job Evaluation brings to OrganisationsAn overview of the Decision Tree approach to Job Evaluation

2© 2015 Hay Group. All rights reserved

What we would like to cover today

1. About Hay Group

Our brand, solutions and clients

2. Work Measurement

Clarifying job evaluation

3. The Decision Tree Architecture

Making job evaluation easier for you

4. Hay Decision Tree

What makes it so unique

5. Client Responses

What our clients say

6. Return on Investment

7. Taking the next step

01About Hay Group

Our brand, solutions and clients


Why Hay Group

Corporate Video


How we view work and What we offer

Work measurement

Job analysis and evaluation

Guide charts (incl. streamlined)Structured questionnaires (incl. Decision Tree)Band descriptorsJEM

Work alignment

organisational effectiveness

organisation benchmarking and analysisSpan and gap analysisPoints and inventory analysisInter-accountability analysis

Work value

Knowing what work is worth

PayNetInternal equity analysisJob Mapping

Work fit

Matching people to jobs

Role profile matrixJob Family ModelsRole fitCap D

Organisation effectiveness

organisation design effectiveness auditInter-accountability diagnosisorganisation benchmarking

Reward

Strategic reward designExecutive remunerationVariable pay designMarket pricingPay equity compliance

Talent management

Career pathingSuccession planningTalent management risk reviewCritical role fit analysis and reviewStrategic performance management

Our core services and tools Our associated services


A sample of our Decision Tree Clients

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Work Measurement Clarifying Job Evaluation

02


Work Measurement / Job Evaluation

Management

Consultant

Bus Driver Managing DirectorSecretary Doctor

Professor Pilot Research /

Product

Development

Financial

Accountant

Car Mechanic


Definition of Job Evaluation

A systematic and objective process

to determine the relative importance,

value and complexity of jobs

in an organisational context,

using a credible JE tool

and thereafter comparing one job to another

to ensure internal JE parity

and results that can be defended


Why should you evaluate jobs?

To create and defend

internal equity

AND

to serve as the base for

the measurement of

external equity


Where does job evaluation fit in?

Business Strategy

Employee Benefits & Non-financial

Rewards

Market surveys

Job Profiling /

Job Evaluation

Performance Management & Employee Development / Structure

Pay levels & relatives

Pay structures

Total remuneration

Performance pay

Reward Strategy

Improved performance

Phase 1

Phase 2

Phase 3


Work Measurement context

Understand the organisation

Understand the division / department

Understand the job

Create job description

Evaluate the job

Link to pay


Job Evaluation versus Remuneration

Job evaluation is…

Driven by business requirements

and job profile

Inflexible

Objective

Looks at the job, not the person

Remuneration is…

Flexible

Consider the person in the job

Takes into account:

• performance of the person

• scarce skills


Possible applications for Job Evaluation

Focus area

Str

ate

gic

Op

era

tio

nal /

tac

tic

al

Org

an

isati

on

valu

e-a

dd

ed

Internal equity management

Market pricing processes

Defining job accountabilities

Career planning

Job family modelling

Organisation analysis and design

Organisation benchmarking

Defining organisational

accountabilities

Succession planning

Talent management

Individual job Job families Entire organisation


Introduction of Section 6(4) of the Employment Equity Act

Amongst the numerous changes to South African labour legislation is the introduction of

Section 6(4) of the Employment Equity Act, which will regulate the principle of equal

pay for equal work. Section 6(4) affects the application of sound job evaluation

and remuneration practices in companies as this became law on the 1st of August

2014. How do we prove that it’s fair discrimination?

The first step in proving fair pay discrimination is to prove work is OR is not “of

equal value”, in other words equal complexity or worth

This can only be proven through the use of a logical, systematic and objective job

evaluation system

Sound job evaluation practices means businesses can proactively reduce the risk of

time-consuming, damaging and expensive unfair discrimination claims

Job evaluation can serve as a defence in an equal pay claim, whereby the

employer will use the job evaluation results to prove that there is in fact a “difference”

in complexity and / or work value, or that work is of equal value and / or complexity

03Decision Tree Architecture

Making job evaluation easier for you


Produce a

wide-range of

value-add

reports

Maintain, share,

export and

archive

information

Evaluate and

validate jobs

(online checks &

balances)

To build a

database of job

profiles

Hay Group Decision Tree

Introducing Hay Group Decision Tree

A powerful, reliable and user-friendly web-based tool that helps

organisations to:


Decision Tree Process

The DT system allows flexibility in terms of the job evaluation process the client wants to follow. The following options are available:

1. “Full Job Evaluation Panel” approach with representatives from both core business and support functions. Line manager and incumbent is called in to provide more information about the job

2. “Mini Job Evaluation Panel” approach which involves line by having a facilitator asking a line manager and incumbent the questions and then having the results confirmed by a Validation Panel

Involvement of line leads to greater understanding of job evaluation, which in-turn leads to more buy-in and less

conflict


Decision Tree Factors

Acquisition and Application of

Theoretical Knowledge

X - Minimum level of knowledge

required

Y - Application of knowledge

Skills Acquisition & Practice

X - Relevant experience required for

the job

Y - On the job familiarisation

Planning and Leadership

X - Time scale of activities - micro

planning cycle

Y - Extent and level of leadership

responsibilities

Communication

X - Complexity of the subject matters

being communicated

Y - Context, format and process of

communication

Judgement

X - Freedom and authority in decision-

making process

Y - Complexity of judgements and decisions

Job Impact

X - Consequences of decisions /

recommendations within a specific role

Y - Diversity (variety) of the job


Questions and Answers


Detailed Help screens


Database of positions


Technical Validation and Quality Control


Technical Validation and Quality Control Cont.


Question trace Comparisons after Re-evaluations


Job Comparisons


Global Benchmarks


Correlation Table across all major JE Systems

04Hay Decision Tree

What makes it so unique


A

B

C

Y

N

Q.2

Q.3

Y

N

Q.7

Q.6

Q.5

Q.4

YN

B

A

N

Y

N

1

2

3

5

6

7

Q.1

Question trace with Validated Logic

4

Q.8 Y

N


A

B

C

Y

N

Q.2

Q.3

Y

N

Q.7

Q.6

Q.5

Q.4

YN

B

A

N

Y

N

1

2

3

5

6

7

Q.1

Question trace with Validated Logic Cont.

4

Decision Tree incorporates checks &

balances for conservative and

‘inflated’ evaluations which means

‘mistakes’ are tolerated


Comparing Question traces of different jobs


Status of Job Evaluations


Incumbent Session


Grades can be hidden


Jobs can be transferred to another user to complete the evaluations


Event Log


Selection of Fields


Query Builder


9 Decision Tree User Levels

05Client responses:

What our clients have to say


Client responses

“We ran an internal survey to judge responses to the system. The results were very positive.

Outcomes were seen as reliable and consistent and overall the system was rated by the

pilot users with an average score of 8.2 out of 10 .“

Shell

“The first time we have sorted out Store Manager levels”

Foschini

“Line managers understand the system and we now have a good alignment

across operations”

British American Tobacco

“The beauty of a decision tree approach is that

its simplicity lies in its complexity”

Return on Investment

05


Return on investment

maximize

Return on

Investment

Enhanced accuracy of job evaluation results

across geographies

Minimise the loss of knowledge due to staff

turnover

Decision Tree simplifies the process of maintaining

job structures, ensuring the alignment between the

organisation’s strategy and jobs

enhance

Efficiencyensure

Consistency

experience

Flexibility


Fees

Cost based on number of employees and system users

Annual Subscription Fee includes all upgrades and unlimited electronic and

telephonic technical support

Once-off technical database set-up fee, e.g. in-house grading levels, company

logo, company-specific look-up tables (i.e. department / division titles etc) and

access control of company users to view or evaluate specific jobs in specific

areas

Consulting implementation costs: customisation, training and

benchmarking

User license add-ons as the business expands

Ongoing research and user group meetings

Bureau costs versus purchasing the system

Moving Forward… Any questions?

06

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