Hay Job Evaluation is a methodology used by many corporates and organisations to map out their job roles

Job (role)

A job is a regular activity performed in exchange for payment. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour to a lifetime . If a person is trained for a certain type of job, they may have a profession...

 in the context of the organisational structure.

The general purpose for carrying out job evaluations using this or similar methods is to enable organisations to map all their roles in a manner that delivers the following key benefits

• Recognising equivalent levels for the purposes of salary and benefit grading/banding
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• Improved succession planning
• Creation of more useful and focused job description
  Job description
  A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range...
  
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Applying the Hay methodology to a role results in two profiles being produced which are called long and short profiles. The long profile provides a view on aspects of the role and a score. The short profile refers to broad groupings of job types that would fit the profile and acts as a check on the long profile.

Typically, Hay evaluations are carried out in a series of steps within any organisation which chooses to use the method

• Training for representatives from major operational departments and HR functions in the use of the method. This will include practical exercises where a mix of people will act as a "job board" and evaluate some trainer-provided job specifications or perhaps some real jobs from their own organisation.
• Revision of all job descriptions across the enterprise under HR guidance. Typically a single standard will be required if it is not already in existence. This will try to capture data in a form that will enable job boards to analyse roles more easily.
• Job Boards – The sponsor/leader of the initiative will allocate the trained staff into job boards of about 4 people. They will be given reporting lines (i.e. related jobs) and each member will rate these as they see them before attending the board. At the board, the group will debate the final scoring, examine the differences and agree on a short and long profile for each role. It can take a long session to rate jobs, initially but as job boards work together, more, they become more productive.
• Organisation map and banding proposal – Typically the HR function will work with senior management to put together a proposal for banding or grading staff and describing the benefits that will be attracted by each band.
• Board Review – once the jobs are all rated and the organisation map is completed, the company board or equivalent will review the summary, the banding proposals, cost if any, to the company and recommended activities to go live. Assuming these are approved, the overall project manager will then move to implementation.

The Hay Guide Charts (properly the Hay Group Guide Chart-Profile Method) are the central instrument of the proprietary point-factor

Point factor analysis

Point factor analysis is and systemic bureaucratic method for determining a relative score for a job. Jobs can then be banded into grades, and the grades used to determine pay. PFA is a type of Job Evaluation...

 job evaluation

Job evaluation

Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all cases the idea is to evaluate the job, not the person doing it....

 methodology developed by the Hay Group

Hay Group

Hay Group or The Hay Group is a global human resources management consulting firm headquartered in Philadelphia, with offices worldwide. It was founded in 1943 by Edward N. Hay. In 1984 the firm was purchased by Saatchi & Saatchi, but returned to private ownership in 1990 after a management...

. The Hay Group was founded in 1943 in Philadelphia, PA, by Ned Hay.

Dimensions

In the Guide Charts, the requirements of a job are regarded as universal, and are termed factors, these being sub-divided into "dimensions".

The three universal factors are said to be:

• Know How
• Problem Solving
  Problem solving
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• Accountability
  Accountability
  Accountability is a concept in ethics and governance with several meanings. It is often used synonymously with such concepts as responsibility, answerability, blameworthiness, liability, and other terms associated with the expectation of account-giving...
  
  

The dimensions within each factor vary. Typically the dimensions break down as follows:

Accountability

• Freedom to Act
• Magnitude
  Magnitude
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• Impact
  Impact
  Impact may refer to:In science :* Impact , a high force or shock over a short time period* Impact crater, a meteor crater caused by an impact event* Impact event, the collision of a meteoroid, asteroid or comet with Earth...
  
  

The power of the Guide Chart lies in the scoring system and relations of the factors (or the Profile.)

Points

The Hay Guide Chart itself comprises point system, so that after job evaluation in terms of factors, dimensions and gradation, job scores can simply be read from the chart.

The point system uses geometric progression

Geometric progression

In mathematics, a geometric progression, also known as a geometric sequence, is a sequence of numbers where each term after the first is found by multiplying the previous one by a fixed non-zero number called the common ratio. For example, the sequence 2, 6, 18, 54, ... is a geometric progression...

 and not linear. This preserves the integrity of the system at all ends of the grading spectrum.

Profile

Before points were even utilized, Ned Hay developed the Profile system that detailed the relationship between the various factors. This helped to give an understanding of the 'shape' of jobs – an understanding of the nature of work performed and the type of job involved e.g., results oriented versus back office support.

The Hay Guide Chart is the most popular point-factor scheme in use in America.

Criticisms

A criticism levelled against the Hay Guide Chart is that the choice of factors is skewed towards traditional management values:

"The Hay system consistently values male-dominated management functions over non-management functions more likely to be performed by women.”

In the EU using a job evaluation scheme can provide a material factor defence for equal pay claims, but care must be taken to ensure that the scheme itself cannot be said to have a gender bias.