Profile: The Hay Guide Chart Method of Job Evaluation

Generally (and ideally) diverse teams of people within an enterprise are trained in the Hay Guide Chart Method of Job Evaluation. Sometimes jobs are evaluated by a Hay consultant or by a limited group within an organization. Sometimes the entire organization is done from top to bottom and at other times just a single division or group like the executive team is evaluated. The system is very flexible and is underpinned by years of research, real life application in a very wide variety of real situations and a database of millions of jobs.

The foundation of job evaluation in the Hay Method is an understanding of job content. The rule is to evaluate the job not the person. Often the evaluator will not know the job or the incumbent. If the evaluator doesn't understand the job from the position description, then they can ask questions, find a resource to help, or delay the job evaluation until the position description is improved. Another key assumption on the part of the evaluators is that the position is being done at a competent level. Excellent or poor performance in the job should not be a factor in the evaluation - this is what performance reviews are for.

There is a document called a Guide Chart that is customized to an enterprise and based in a solid foundation of Hay algorithms. This is a fairly straightforward four page (sometimes three) chart that is easily learned with training but not truly understandable until you have applied it over a number and variety of jobs.

The Guide Chart is divided into "factors". There are a total of four major factors that are in turn divided into 12 dimensions. It will help you to understand the chart below if you remember that the factors are weighted. Know-How usually comprises about 50% of the total points followed by Problem-Solving and Accountability at 20% each and Working Conditions at 10%. This weighting is indicative of the common balance but it may not be the same in a customized application. Also, the Working Conditions factor is not used in every installation. In other words, debating at length your working conditions points for a typical white-collar librarian job will make very little difference in your overall ranking. Focussing on the fairness of the evaluation of your position's requirement for know-how and problem solving will potentially achieve more.

Finally, the points in and of themselves don't mean much. When enough of the evaluations are done, all jobs in the enterprise are listed from end to end by their simple total points and profile. This creates the so-called ranking. At this point various analyses are done and decisions made to create bands or pay grades. Research suggests there should be at least a 15% difference between jobs for there to be a noticeable difference. The research includes a lot of human perception research such as when humans perceive a difference in candlelight or sound decibels. Hence, many pay grades are in 15% bands. You have a chance of moving your pay grade if your points increase enough to change your position to the next higher band. If your points are at the bottom of a range then you can do the math . .

Another whole layer is added here. Market factors (external salary surveys) are reviewed in the context of the enterprise's market competitiveness. The enterprise determines if they want to pay at, above or below market and for what positions. Positions may be "red-circled" due to market anomalies or business needs (like specialized, programmers in high demand).

Of course, this is all a gross over-simplification but you get the idea. Compensation competencies are professional skills usually enjoyed by HR professionals. I hope this outline assists you in effective conversations with them.

Hay System Guide Chart Factors Summary


*Factor*	Brief Definition	Additional Shades

Know-How (3 dimensions)	The sum total of every kind of knowledge and skill, however acquired, needed for acceptable job performance.
Specialized Know-How	Practical procedures, specialized techniques and knowledge within occupational fields, commercial functions, and professional or scientific disciplines. In varying combinations, some jobs require knowledge about a lot of things while others require a lot of knowledge about a few things.	Skill levels: Entry, paper picker Simple processor Super processor Community college, portable skills Equivalent of college education Seasoned with substantial work experience Authoritative source within organization GURU, usually specialized The experience scale is similar.
Management Know-How	Planning, organizing, coordinating, integrating, staffing, directing and/or controlling the activities and resources within an organizational unit or function. Can be exercised directly or consultatively.	T - Task-oriented, strong boundaries to job First line supervisor or individual contributor that must be aware of many other activities outside of job boundaries Activities are delegated to first line supervisors, or strong consulting across important parts of the organization Large unit, functional variety
Human Relations Skills	Active face-to-face skills needed for various relationships with other people.	Talker Communicator Motivator, negotiator, seller
Problem-Solving (2 dimensions)	The amount and nature of thinking required in the job in the firm of analyzing, reasoning, evaluating, creating, using judgment, forming hypotheses, drawing inferences, arriving at conclusions, etc.
Environment	The environment in which the thinking takes place. How much guidance is available from department policy and practices? How much from supervisors?	Detailed rules Standing instructions "what" and "how" less limiting Some freedom to resolve problems, unusual situations referred up 1. Problem is clear, solution is not 2. Big Problems expressed as objectives, "what to do" left to incumbent. 3. Free to determine major functional directions
Challenge	The challenge of the thinking to be done.	The complexities: Strictly black & white Shades of grey "Rule books" available, incumbent selects Analysis, evaluative thinking Creative, not done before
Accountability *(3 dimensions)*	The answerability for action and its consequences. It is the measured effect of the job on the end results of the enterprise.
Freedom to Act	The extent to which personal or procedural control exists. What controls affect the job?	R - Constant supervision A - Supervision is continuing but not direct B - Some prioritization of work permitted C - Supervision periodic, some checking of work D - Supervisory review, less stringent E - Managerial direction F - Review of end results in 6 months or more
Job Impact on End Results	The degree to which the job affects or brings about the results expected of the unit or function being considered.	A - Limited impact, passes most decision-making on to others C - Contributes in an advisory, support way. S - No sharing with subordinates or superiors - only with equals. Control over most but not all the resources to achieve results. P - Line management - position has a controlling impact on activities that produce the end results
Magnitude	The size of the function or unit measured in the most appropriate fashion (like revenue, production, etc.)	How big is the job? M - Tough to measure 1 - A value-added role 2. - Small, up to $4.4 million 3. - Something of substance - up to $44 million A large chunk of the organization - up to $440 million
Working Conditions *(4 dimensions)*
Physical Effort	Jobs may require levels of physical activity, which produce physical stress or fatigue.
Physical Environment	Jobs may include exposure to varying intensities to unavoidable physical and environmental factors that increase the risk of accident, ill health or discomfort.	Consider the variables of: Intensity Duration Frequency
Sensory Attention	Jobs may require concentrated levels of sensory attention during the work process.
Mental Stress	Mental stress refers to factors inherent in the work process or environment that increase the risk of such things as tension and anxiety.