the integration that job evaluation brings to organisations an integrated approach t… · 1. about...
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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
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Why Hay Group
Corporate Video
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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
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A sample of our Decision Tree Clients
Work Measurement Clarifying Job Evaluation
02
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Work Measurement / Job Evaluation
Management
Consultant
Bus Driver Managing DirectorSecretary Doctor
Professor Pilot Research /
Product
Development
Financial
Accountant
Car Mechanic
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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
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Why should you evaluate jobs?
To create and defend
internal equity
AND
to serve as the base for
the measurement of
external equity
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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
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Work Measurement context
Understand the organisation
Understand the division / department
Understand the job
Create job description
Evaluate the job
Link to pay
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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
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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
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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
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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:
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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
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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
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Questions and Answers
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Detailed Help screens
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Database of positions
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Technical Validation and Quality Control
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Technical Validation and Quality Control Cont.
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Question trace Comparisons after Re-evaluations
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Job Comparisons
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Global Benchmarks
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Correlation Table across all major JE Systems
04Hay Decision Tree
What makes it so unique
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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
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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
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Comparing Question traces of different jobs
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Status of Job Evaluations
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Incumbent Session
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Grades can be hidden
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Jobs can be transferred to another user to complete the evaluations
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Event Log
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Selection of Fields
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Query Builder
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9 Decision Tree User Levels
05Client responses:
What our clients have to say
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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
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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
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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