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Hay's Method of Job Evaluation
Human Resources » Compensation & Benefits

Chrm Message From: sumit_hr Total Posts: 29 Join Date: 15/08/2006
Rank: Executive Post Date: 17/05/2007 03:17:30 Points: 145 Location: United States

Hello friends,

Let me initiate a discussion on Hay's Method of Job Evaluation. Let me pour in what I have learnt in the past years..

Job Evaluation
Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgements of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.

Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are developed mainly along occupational lines.

The standards do not attempt to describe every work assignment of each position in the occupation covered. The standards identify and describe those key characteristics of occupations which are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the occupation to which the standards apply.

*Factor Comparison
A set of compensable factors are identified as determining the worth of jobs. Typically the number of compensable factors is small (4 or 5). Examples of compensable factors are:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions

Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain characteristics.

1. equitable pay (not overpaid or underpaid)
2. range of the factors (for each factor, some jobs would be at the low end of the factor while others would be at the high end of the factor).
The jobs are then priced and the total pay for each job is divided into pay for each factor.

*Point Method
A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:
4.Working Conditions

These factors can then be further defined.
a. Experience
4.Working Conditions
c.Extremes in Environment

The point method is an extension of the factor comparison method. Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job. Jobs are then grouped by total point scores and assigned to age/salary grades so that similarly rated jobs would be placed in the same wage/salary grade.

Hope this helps to all. All the best...



Chrm Message From: sudipto chakravorty Total Posts: 1 Join Date: 15/08/2006  
Rank: Beginner Post Date: 30/04/2010 16:25:06 Points: 5 Location: United States

the note from summit is certainly interesting .there are multiple ways of evaluating job . hey's method is one of the established ones .likewise there is mercer,watson waytt,s and other  also . But is it possiable  for some body to  give at least one of the processes completely....... that is where exactly to start from & where to end & the intervening steps .  to start with can somebody provide ........ maybe a grid in excell sheet , which has to be used for collectting information for each job . I trust heys method also has such a sheet to start with .


Chrm Message From: jeng_pestio Total Posts: 6 Join Date: 15/08/2006  
Rank: Beginner Post Date: 02/05/2010 00:54:10 Points: 30 Location: United States

Hay Method is used to evaluate jobs in the organization. Mercer as well as Watson Wyatt are companies that can conduct job evaluation through inputs of several companies but not a job evaluation method per se. 

If you will be using Hay Method for job evaluation, you should have its guide charts. I cannot attach the file but you can search it on-line.

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