Introduction to Hay Job Grading by Derek Hendrikz

Introduction to HAY grading

derek hendrikz

http://www.derekhendrikz.com/

Copyright © 2014

Derek Hendrikz Consulting

www.derekhendrikz.com



Hay Job Evaluation is a methodology of appraising the value or worth of one job in relation to others within organisational context.




Role Mapping has the following key benefits....

• Provides clarity in result areas

• Provides accountabilities within organizational processes

• Enables salary and benefit grading

• Enables benchmarking due to standardization of job levels

• Improves succession planning

• Improves mobility within the organization

• Creates useful and focused job descriptions



Steps for carrying out a Hay Evaluation....

• Train departmental representatives in the use of the method.

• Revise job descriptions via standard format.

• Create Job Evaluation Boards – mix of line management, HR and experts to decide on plotting of jobs.

• Organization map and banding proposal – HR & senior management puts together a proposal for banding (scales expressed in Hay points) or grading staff and describes the benefits that each band attracts.

• Board Review – once jobs are rated and the organization map completed, the relevant authority will review the summary, the banding proposals and cost if any.

• Assuming the above are approved, the overall project manager will then move to implementation.



A job is evaluated by looking at the knowledge required to do the job (whether practical or intellectual), the kind of thinking required to solve the problems which the job commonly faces, the responsibilities (accountabilities) assigned, and the work environment in which the work is performed.




4 Universal Factors of Hay Evaluation....


Work Environment

Know How

Accountability

Problem

Solving




Job Content

Job Context

vs.


Hay Evaluation....


Job Content

Know How

Input

Problem Solving

Process

Accountability

Output

Job Context

Working Conditions

Physical Demands

Mental Pressures


Know How....

• Technical Knowledge

• Management Breadth

• Human Relations Skills




Level

A. Basic

B. Elementary

C. Intermediate Skill And / Or Knowledge

D. Extended Skill And / Or Knowledge

E. Diverse or Specialized

F. Seasoned, Diverse or Specialized

G. Broad or Specialized Mastery

H. Externally recognized expertise

Technical Skill



Level Explanation

T. Performance of a task(s) highly specific as to objective and content, and not involving the leadership of others.

I.Performance or direction of activities, which are similar as to content and objectives with appropriate awareness of other activities.

II.Direction of an important unit with varied activities and objectives OR guidance of an important sub function(s) or several important elements across several units.

III.Direction of a major unit with noticeable functional diversity OR guidance of a function(s) which significantly affects all or most of the organization.

IV. Management of all units and functions within the organization.

Management Breadth



Level

1. Basic

2. Important

3. Critical

Human Relations Skills



Applying the Grades....

• Combining selected codes will then give a

know-how grading.

• E.g. a seasoned supervisor to whom

interpersonal skills are important will be

graded FI2



Problem Solving....

• Thinking

Environment

• Thinking Challenge




Level

A. Highly Structured

B. Routine

C. Semi-Routine

D. Standardized

E. Clearly Defined

F. Generally Defined

G. Broadly Defined

H. Abstract

Thinking Environment



Level

1. Repetitive

2. Patterned

3. Varied

4. Adaptive

5. Unchartered

Thinking Challenge





know-how grading.

• E.g. a hotel bell-boy who applies routine

thinking and does repetitive process-

based work will be graded B1



Accountability....

• Freedom to Act

• Magnitude

• Impact




Level Explanation

R These jobs are subject to explicit, detailed instructions AND/OR constant personal or procedural supervision.

A These jobs are subject to direct and detailed instructions AND/OR very close supervision.

B These jobs are subject to instruction and established work routines AND/OR close supervision.

C These jobs are subject, wholly or in part, to standardized practices and procedures, general work instructions and supervision or progress and results.

D These jobs are subject, wholly or in part, to practices and procedures covered by precedents or well-defined policies, and supervisory review.

E These jobs, by their nature and size, are subject to broad practices and procedures covered by functional precedents and policies, achievement of a circumscribed operational activity, and to managerial direction.

F These jobs, by their nature or size, are broadly subject to functional policies and goals and to managerial direction of a general nature.

G Subject to the guidance of broad organization policies, community or legislative limits, and the mandate of the organization.

Freedom to Act


Level Explanation

R These jobs are subject to explicit, detailed instructions AND/OR constant personal or procedural supervision.

A These jobs are subject to direct and detailed instructions AND/OR very close supervision.

B These jobs are subject to instruction and established work routines AND/OR close supervision.

C These jobs are subject, wholly or in part, to standardized practices and procedures, general work instructions and supervision or progress and results.

D These jobs are subject, wholly or in part, to practices and procedures covered by precedents or well-defined policies, and supervisory review.

E These jobs, by their nature and size, are subject to broad practices and procedures covered by functional precedents and policies, achievement of a circumscribed operational activity, and to managerial direction.

F These jobs, by their nature or size, are broadly subject to functional policies and goals and to managerial direction of a general nature.

G Subject to the guidance of broad organization policies, community or legislative limits, and the mandate of the organization.


Level M (Minimal)1 (Very Small) 2 (Small) 3 (Medium) 4 (Large)5 (Very Large)

Magnitude (scope)



Level Explanation A Ancillary

C Contributory

S Shared

P Primary

Impact





know-how grading.

• E.g. a CEO who's freedom of decision making

is only restricted by the Board, organisational

policies and strategy; who's accountability

scope and impact is large will be graded G3P



Work Environment....

• Physical Effort

• Physical

Environment

• Sensory Attention

• Mental Stresswww.derekhendrikz.com



Code Description (low) SCALE (high)

P Physical Effort 1 2 3 4 5 6 7 8 9 10

E Environment 1 2 3 4 5 6 7 8 9 10

H Hazards 1 2 3 4 5 6 7 8 9 10

S Sensory Attention 1 2 3 4 5 6 7 8 9 10

Assigning points for special conditions…



Hay Evaluation needs to match 3 Variable's....


Target match between three

Job

People

Compensation/ Grade


Evaluation Methodology

Results give reason of

existence to the job

To achieve the desired result change must

take place and problems must

be solved

Knowledge and Experience is

needed to solve problems and achieve results

Know How+

Problem Solving+

Accountability

Problem Solving+

AccountabilityAccountability



Webbers Law....

the 15% rule


when the physical

weight of two objects

differed by more than

15%, people could

distinguish between

their weights just by

lifting them


the 15% RULE…

Steps…

50

57

66

76

87…

1 x 15% step = Perceptional Difference2 x 15% step = Noticeable Difference3 x 15% step = Clear Difference



Internal Logic behind Webbers Law....




Hay Evaluation & Succession Planning....




Long & Short Profile Creation....

• The long profile provides a view on aspects

of the role and a score.

• The short profile refers to the nature of the

job (e.g. scientist vs. sales manager) and

acts as a check on the long profilewww.derekhendrikz.com



Short Profile Types....


Up Profiles…

• “Accountability” is higher than “Problem Solving”

• Deadlines and end results are more important than analysis and research

• As the gap between “Problem Solving” and “Accountability” increases, deadlines and end results take on greater significance

• Jobs of this nature are supervisors and managers

Level Profiles…

• “Problem Solving and “Accountability” are equal

• Analysis and the search for answers is as important as deadlines.

• Positions such as Research Analyst, Planner, and Auditor

Down Profiles…

• “Problem Solving” is greater than Accountability

• Analysis and the search for answers is greater than deadlines and results

• Positions responsible for scientific research


Accountability vs. Problem Solving....


Quantification Interpretation

+4 Up 4 Accountability is four steps higher than Problem Solving

+3 Up 3 Accountability is three steps higher than Problem Solving

+2 Up 2 Accountability is two steps higher than Problem Solving

+1 Up 1 Accountability is one steps higher than Problem Solving

= Level Accountability and Problem Solving are equal

-1 Down 1 Accountability is three steps lower than Problem Solving





Developing a Pay Grade Structure....


Internal Analysis…

• Analyse extent to which similar jobs receive similar pay.

• Analyse existing pay and compensation philosophy.

External Analysis…

• Benchmark pay structure with market.



Recruiting & HR

Introduction to Hay Job Grading by Derek Hendrikz