Hay Guide Chart Profile Method of Job Evaluation (Hay System)

Purpose - The purpose of the Hay System is to provide a consistent procedure to evaluate position
classifications by:
• Objectively measuring the content of each job compared to other jobs based on classification
factors applied to all jobs;
• Determining its relative worth;
• Establishing equitable pay relationships among all jobs.

Benefits - The Hay System provides

 a structured and consistent method to evaluate jobs.

 eliminates much of the subjectivity inherent in other types of compensation systems and
ensures that jobs that compare in value are paid within the same pay grade.
 Thorough job analysis is the cornerstone of any human resource system and is used in
human resource practices s
 such as the selection process, salary administration, and performance management.

Overview - The Hay System uses a point factor method to evaluate classes. The classes are
evaluated by three primary factors: know how, problem solving, and accountability. Each primary
factor contains several elements. The factors and elements are listed below:

Classification Factors

1. Know How
I. Practical / Technical Knowledge - used to recognize increasing specialization (depth)
and/or the requirement for a greater breadth (scope) of knowledge. Practical
procedures, specialised techniques and knowledge within occupational fields,
commercial functions, and professional or scientific disciplines.
II. Planning, Organizing, & Integrating (Managerial) Knowledge - knowledge required for
integrating and managing activities and functions. Integrating and harmonising the
diverse elements involved in managerial situations. This involves, in some combination,
skills in planning, organising, executing, controlling and evaluating and may be exercised
consultatively as well as executively.
III. Communicating & Influencing Skills - reflects skills needed to communicate with and
influence individuals and/or groups within and outside the organization. Active,
practicing person-to-person skills in work with other people, within or outside the
organisation.

2. Problem Solving : The original, self-starting use of Know-how required by the job to identify,
define, and resolve problems. ‘You think with what you know’. This is true of even the most
creative work. The raw material of any thinking is knowledge of facts, principles and means. For
that reason, Problem Solving is treated as a percentage of Know-how.

I. Thinking Environment - Freedom to Think - reflects the degree to which thinking is

constrained by rules, methods, procedures, precedents, policies, strategy, etc.
II. Thinking Challenge - reflects the complexity of the problems encountered and the
extent
 to which original thinking must be employed to arrive at solutions. Thinking Challenge
measures the complexity of decisions with which a position is faced.

3. Accountability - The answerability for action and for the consequences of that action. It is the
measured effect of the job on end results of the organisation. It has three dimensions in the
following order of importance:
I.Freedom to Act - reflects the extent to which the job / role decides on the measures and
actions to be taken to achieve the required results. the extent of the personal, procedural,
or systematic guidance or control of actions in relation to the primary emphasis of the job.
II. Nature of Impact - reflects the nature and degree of influence the job has on defined end
results, as expressed in Magnitude. Job impact on end results: the extent to which the job
can directly affect actions necessary to produce results within its primary emphasis.
III. Magnitude (Area of Impact) - reflects the area of the organization most clearly affected by
the job, expressed in qualitative or quantitative measures. Magnitude: the portion of the
total organisation encompassed by the primary emphasis of the job. Where possible,
magnitude is expressed in annual financial figures representing the area of primary
emphasis of the job.

Beyond these three factors of job content, additional scales can be used to assess factors relating
to the context in which the job operates; for example, unpleasant working environment, hazards,
physical demands, sensory attention, etc. When such factors are important for the jobs under
consideration, scales are generated to enable their assessment within the context of the
organisation.

Position Evaluation

1. Supervision/ Management of People: ( 7 Level )

(Degree of Supervision)

 Little or No Supervisory.
 Some supervisory responsibility for temporarily assigned tasks.
 Direct supervision of at least one employee in one identifiable area.
 Supervision/Management of a group of employees working in the same general area.
 Management of more than one group of employees carrying out different tasks in the same
general type of work.
 Planning, co-ordination and management of groups of employees carrying out work across a
wide range of different activities.
Planning, co-ordination and management of groups carrying out work across a range of major
functions

2. Management Know How & Skills: ( 8 Level )

Degree of Knowledge, Skill and Experience: Depth & Range of Know-How, Planning &
Organizing and Communicating & Influencing ('Human Relations Skills)

 Variety of tasks can be done without close supervision - Few options to change the rules -
Getting close supervision only in performing new task.
 Range of tasks where Specialist skills or knowledge can be used - The outputs from the job
indicate the productivity of the position.
 Responsible of how to do the work according to the procedures - Tasks relatively complex.
 Technically sufficient to organize the work - Regularly deals with complex work - Have impact
on organizational or procedural or policy context of the work unit.
 Has the knowledge and the experience to be a referral for others, complex work output has
impact organizational; procedural or policy context within the section/department.
 The work is more concerned with integrating outputs from activities started by others, not
necessarily managerial, work at an authoritative level. Specialized ‘technical / expert’ jobs can
operate at this level without any supervisory or managerial content.
 Position holder has the full knowledge and the experience to know how “to make it happen”
in organization terms. Job output has significant impact on development policy
 Position requires high level capability and managerial work, focuses in policy not in completing
task process, unique technical, specialist capability at a wide expert level “Making it happen”
3. Creativity and Innovation: ( 7 Level )
Degree of innovative and imaginative responses to issues and in the resolution of problems
required by the position

 Position doesn’t require creativity or innovatory thinking

 Position requires an occasional creative skills to deal with routine problems as work largely
regulated by laid down procedures
 Creativity is a feature of the job, exercised within general framework of recognized
procedures.
 Creativity and innovation are essential to perform the assigned tasks exercised within general
guideline.
 Work requires a range of imaginative solutions or responses and involves application of
innovatory thinking.
 Work requires creative and innovation input in many different subjects and expertise.
Imaginative thinking is not limited by defined policies.
 Work carried out in challenging situations frequently require innovatory response on different
subjects which have extensive policy
4. Initiative & Independence: ( 10 Level )
“Freedom to Act”

 Works under close supervision - Receives detailed instruction and procedures - Transfer all
difficulties/questions to the supervisor to solve it.
 Works under frequent supervision - Work well defined with limited independence to modify
work routines - Able to arrange work priority - Excluding the routine difficulties/questions the
rest of them transferred to supervisor to solve it.
 Works under less frequent supervision - Work is defined by standard practice and established
procedures - Able to make tasks priority and decides the required additional information -
Transfer only major problems to supervisor to solve it.
 Works under infrequent supervision - Standard practices are followed for the most part - Able
to adjust own work schedule - Problems solutions are discussed with supervisor.
 Work under occasional supervision - Proceeds on own when majority of duties are defined by
general instructions, established methods or clearly precedents.
 Work fairly independently - Proceeds within general guidelines and instructions or where a
clearly defined precedent does not exist.
 Work within general direction and guidance. Plans and carries out details of procedures to
attain definite objectives - Takes action in the application of policies or standards widely
accepted within the occupation or profession.
 Works with little direction - Plans assignments at the area/unit level - Makes operational
changes to solve problems to enhance the area/unit activity - Positions have a lead role in the
development of administrative Department policies and regulations.
 Works independently on general assignments - Plans and carries out wide assignments of a
major Department often involving other related activities/disciplines. Take actions without
reference to superiors except when policy changes are required, major investments are
involved or long-term programs are affected.
 Works independently on wide administrative and policy making activities - Plans and carries
out major programs and plans of the entire Organization. Employee’s work is checked only
through consultation and agreement with others. Typically does not receive directions on a
regular basis.
5. Contacts and Relationships: ( 8 Level )
Degree of personal contact and appraises the nature of the relationships with other people
which are required to be maintained by the post holder

 Clear data/information - Routine contacts

 Develop well established Contacts/Relationships to provide readily available information;
assistance or occasionally dealing with issues where the outcome may not be straightforward.
 Non-continues outside Contacts/Relationships for advice, assessment, or delivering more
effective support in not straightforward outcomes.
 Outcomes are not clear, contacts to make assessment, planning and evaluating. Some
authority in the work area is required
 Matters likely to be complex requiring support, persuasion and sensitivity in the work within
the guidelines - The outcome will have material effect on the services and organization’s
contacted parties.
 Range of complex matters requiring support, persuasion, advocacy and sensitivity within the
guidelines
 Regularly deals with complex matters requiring a high degree of support, persuasion, advocacy
and an awareness of organization’s major policy objectives. The outcome will have a basic
affection on the organizations or the contact. May act on the behalf of the organization
 Advising the Organization on high level complex matters with major involvement of
organization contacted parties (CONSULTANT) or require a responsibility to act on behalf of
the Organization to make an action involving a strong impact on resources.

6. Decisions – Discretion: ( 6 Level )

Assess the need to make choices, the accountability for the outcome, the constraints upon
decisions and the availability of guidelines, advice, precedents, regulations and procedures
which will determine the extent of discretion.

 Little freedom to act – work clearly defined by rules and procedures.

 Decisions chosen from range of established alternatives.
 Work is carried out within programs and objectives where advice is not normally available
and/or decisions where policy, procedures and working standards provide only general
guidelines.
 Decisions which lead to the setting of working standards and/or leading to changes in
important procedures or service practices.
 Has a major responsibility for monitoring and evaluating important policy, service practices,
provision affecting the whole service and making recommendations for change and for
managing their implementation.
 Has a continuing responsibility for reviewing important policy, service practices, provision
affecting the whole Organization and making recommendations for changes, managing the
implementation and following up and dealing with the implications of the changes.
7. Decisions – Consequences: ( 4 Level )
Assess the nature of the consequences or outcome of the decisions which will be considered in
terms of the effect upon people, property, finance, budgets, policies, objectives, targets, etc.

 Decisions which have a limited and short-term effect on employees beyond immediate
colleagues. Effects of decisions would be quickly known and readily amended if necessary.
 Decisions which have a material effect on the internal operations of the post’s own or other
departments.
 Decisions which have significant implications for the work execution or significant effects on
employees related work field.
 Decisions which have a major impact on the Organization policies and activities across a
number of departments or on large numbers of people or on organizations in receipt of the
Organization’s services.
8. Resources / Responsibility: ( 5 Level )
Assesses personal and identifiable accountability for physical and financial resources including
those of clients.

 Little or no responsibility for physical or financial resources.

 Level (2)
 Level (3)
 Level (4)
 Level (5)
9. Work Demands: ( 5 Level )
Considers the impact of deadlines, the frequency and suddenness of demands for changes
between work, communication problems, and the resolution of conflicting resource needs and
priorities on the work of the post holder

 Work where tasks are interchanged but the program of tasks is not normally interrupted.
 Work subject to interruption to the program of tasks but not involving any significant change
to the program.
 Work subject to deadlines involving changing problems, circumstances or demand.
 Work subject to deadlines involving frequently changing circumstances and conflicting
priorities.
 Work subject to constant change and the management of conflicting priorities and deadlines.

10. Physical Demands: ( 4 Level )

Considers the amount and continuity of physical effort required.
 Work requiring normal physical effort.
 Work requiring normal physical effort with periods of substantial effort; or normal physical
effort occasionally in awkward postures: or prolonged effort in a constrained position involving
considerable manual dexterity.
 Work requiring substantial physical effort with short periods of intense physical effort; or
normal physical effort regularly in awkward postures.
 Work regularly requiring intense physical effort; or lengthy periods of substantial physical
effort in awkward postures.

11. Mental Demands: ( 5 Level )

Level and frequency of concentration, alertness and attention required for the job.

 The duties of the job are such need concentration only on the tasks in hand.
 Deadlines are assigned. Concentration on the day’s workload has to be finished that day.
 Accuracy is required in repetitive activity. Concentration required to deal with a new demand
and then, later, complete the current task on daily basis.
 Concentration daily on 2 or 3 different types of activity. This level is in the area of time
management, where the JH may well not be told to change priorities and the JH has to assess
the relative urgency and weight of the tasks to hand.
 A range of different tasks implies the JH has to switch between more than 3 diverse activities.
Much of the work is focused on accuracy, on completion and a break in concentration could
put successful task completion at risk. A function manager would have to apply high level time
management skills to achieve his overall objectives.

12. Working Conditions: ( 4 Level )

Assesses the difficulty of working conditions.

 Work normally performed in a lit and ventilated indoor environment; may be exposed to
occasional noise or outside conditions.
 Work includes significant elements of inside or outside work involving some exposure to
moderate noise, heat, cold, disagreeable or difficult surroundings/conditions.
 Majority of work performed outside involving exposure to all weather conditions or exposure
inside or outside to considerable noise or dirty or difficult or disagreeable and unpleasant
surroundings/conditions.
 Working continuously outside involving exposure to all weather conditions or exposure inside
or outside to continuous noise or work in dirty or very disagreeable and unpleasant
surroundings/conditions.

13. Knowledge and Skills (Mental & Physical) : ( 7 Level )

Measures knowledge and skills, in their broadest sense, in relation to the work or discipline
required by any job covered by the Scheme.

 Ability to undertake work consistent with a basic knowledge and skills requirement, which
involves a limited range of tasks.
 Ability to undertake work consistent with a comparatively basic knowledge and skills
requirement, which encompasses a range of tasks involving application of readily understood
rules, procedures or techniques.
 Ability to undertake work concerning more involved tasks confined to one function or area of
activity, which requires a good standard of practical knowledge and skills in that area of
activity.
 Ability to undertake work of a variety of advanced tasks, confined to one function or area of
activity, which requires detailed knowledge and skills in a specialist discipline.
 Ability to undertake work of a range of advanced activities either to apply more than one
function which requires detailed knowledge and skills in a specialist discipline or to apply one
function which requires detailed knowledge and skills in more than one specialist discipline.
 Ability to undertake work of a complex nature which requires EITHER Detailed knowledge and
skills in a diverse range of specialist disciplines or advanced/high level knowledge and skills in a
specialist discipline.
 Ability to undertake work of a more complex nature, which requires advanced/high level
knowledge and skill across a range of specialist disciplines.
 Ability to undertake work of a highly complex and diverse nature, which requires
advanced/high level knowledge and skills in a range of specialist disciplines.
14. Communication & Interpersonal Skills: ( 4 Level )
Assesses the Ability of communication both internal and external.

 Position does not require communication or interpersonal skills internal or external to the
organization.
 Position requires to have a fair communication and interpersonal skill inside the organization.
 Position requires to have a fair communication and interpersonal skill outside the
organization.
 Position requires to have a fair communication and interpersonal skill internal and external of
the organization.
15. Bilinguality: ( 3 Level )
Assesses the ability of speaking Arabic and English.

 Position requires good command of only Arabic language.

 Position requires good command of only English language.
Position requires good command of both Arabic and English languages

Taken from Armstrong, Michael, and Murlis, Helen, Reward Management: A Handbook of
Remuneration, Strategy and Practice
 GRADES HAY NEW PSA JOB LEVELS

A 23 & + A

22
B
21

20
C
19

18
D
17

16
E
15
14 F

What is a Job Profile?

Jobs have shape as well as size. The profile of a job refers to the shape of the job. It is important in
3 ways:

• It is an independent check on the judgements made about job size.

• It describes the nature of the contribution expected from a job.

• It helps to establish a ‘best fit’ between people and jobs.

Job Shape VS Job Size

The evaluation score of a position gives an indication of its size, relative to other jobs. It answers
the question, “How big is this job?”

However, the relationship between the scores for the Problem Solving / Thinking and the
Accountability / Decision Making factors is indicative of the shape of the job and answers the
questions, “What sort of job is this?” “Is it characterized by thinking (Problem Solving) or action
(Accountability), or is the balance about equal?”

4 Factors in Hay JE Methodology

In the methodology, the 3 Know-How, Problem Solving and Accountability are all linked together.
Working Conditions is more “contextual” in nature. The full points would look something like this:

Know-How 460

Problem Solving 230

Accountability 132

Total Points (Contents) 822

Working Conditions (Context) 33

Full Points (Combined) 855

Just as a recap, here are the descriptions of the 4 factors.

Know How The knowledge, skill, however acquired, needed for acceptable job performance.

Problem Solving The thinking required in the job.

Accountability The relative degree to which the job when performed competently, can affect the
results of the organization, or a unit within the organization.
 Working Conditions The context in which the job is performed.

How Does the Short Profile Work?

“Short profile” assesses the relationship between Accountability (AC) and Problem Solving (PS);
with considerations given to Know-How.

PS and AC also have a relationship that provides information about the general nature of jobs that
when examined either validates the evaluation or challenges the results.

Jobs with significantly more Accountability points relative to Problem Solving are usually very end
results-focused, action or line jobs. When Problem Solving is greater than Accountability, jobs are
typically more research-oriented, staff or administrative-oriented.

Jobs with essentially the same AC and PS points tend to have an administrative/action orientation.

Source: Hay Measurement, Hay Group

The profile is determined by identifying the step

 difference between PA and AC.

 The step difference is determined by locating the PS points on the step value guide and
counting up or down until you have located the AC points-?.
 The number of steps taken in this procedure establishes the step difference.
 The direction (up +, down – ) defines the nature of the difference.
 You can see the job profiles of the job examples in the 2 illustrations below.

Source: Time Rahul, R&D & Compliance, Karma Management Consultants

Source: Role of Job Evaluation in Salary Administration:

Case Study of a Large Company in Hong Kong, written by Tsui Lap Fung, The university of Hong
Kong Up, Down and Level Profiles

• An action or results oriented job (PS<ACC) is primarily oriented toward generating end results.
Problem Solving takes a secondary position in this position. Therefore, the points given to
Accountability / Decision Making will be higher than those for Problem Solving / Thinking. This
relationship is known as an Up, or “A,” Profile.

•A balanced or level job (PC=ACC) is one in which the Accountability / Decision Making and Problem
Solving / Thinking points are the same. The position will be staff-oriented and have responsibility
for managerial or supervisory functions. This is known as a Level, or “0,” Profile.

•A thinking or research oriented job (PS>ACC) exists to apply Know How in the analysis,
investigation and identification of situations. The Problem Solving / Thinking points will be greater
than those for Accountability / Decision Making. This is known as a Down, or “P,” Profile.

If we turn the earlier “Relationships between Factors AC to PS” diagram 90 degree anti-clockwise,
we will obtain the following chart.

Source: Quality Assurance Checks:Short Profiles, Hay Group

Here is the explanation of the above chart. While there are no hard and fast rules, particular types
of jobs do tend to have predictable profiles:

Up Profiles A4 Examples of this profile are unusual but can occur where the Accountability for
results is high but the Problem Solving or Know How content of the job is relatively low.
A2 A3 These profiles are found in line management jobs which have a clear and well defined
responsibility for achieving results, such as regional director for operations.

A1 Accountability / Decision Making points exceed Problem Solving / Thinking points by one step.
Jobs with A1 profiles are often hybrid jobs with significant people management responsibilities
(such as human resources managers), line management positions, or jobs which receive a
significant degree of direction from functional units, such as project managers or regional
directors of administrative services.

Level Profiles L Problem Solving / Thinking points equal Accountability / Decision Making points.
Jobs with these profiles will tend to involve providing support services in staff functions or
supervisory positions such as financial analysts or heads of functional specialties.

Down Profiles P2 P1 Problem Solving / Thinking points exceed Accountability / Decision Making
points by two steps or one step, respectively. Applied research or policy development jobs will
tend to have these profiles.

P4 P3 Problem Solving / Thinking points exceed Accountability / Decision Making points by four or
three steps, respectively. Jobs with these profiles will tend to be concerned with basic or pure
research, with little orientation to, or regard for, development aspects. P4 Jobs will rarely be
found outside a university.

Up, Down and Level profiling allows the validity of evaluations to be checked against typical job
profiles. Discrepancies, if found, may indicate an incorrect evaluation. However, they might also
indicate an inappropriately structured job. Therefore, it is important to avoid letting profiles drive
the evaluation process.

Source: Executive Group Position Evaluation Plan, Treasury Board of Canada Secretariat

Method of Calculation

Here is the method for checking the accountability / decision making evaluation.

Step 1:Determine the step difference between PS and AC, using the Hay step-values table

• Find the Problem Solving (PS) points on Step Value table.

• Count up or down until you reach the Accountability (AC) points.

The following is the step value table. The difference between each value is 1 stop. 1 stop equals
15%

STEPS

3200

2800

2432

2112

1840

1600

1400

1216
1056

920

800

700

608

528

460

400

350

304

264

230

200

175

152

132

115

100

87

76

66

57

50

43

38

33

29

25

22

19

16

14
12

10

Step 2: If AC > PS, then A profile. If PS> AC, then P profile. If PS=AC then Level profile. The short
profile number is determined by the amount of step difference.

• If you count up two levels, the job is said to be +2 or A2 or “up 2.” If you count down one
level, the job is said to be -1 or P1 or “down 1.” If the points are equal, the job is said to be = or
level.

Step 3: The percentage profile can be read off an intersection of problem solving % and step
difference.

Characteristic Hay Profiles (Percentage of KH-PS-AC) Table

Here is how the characteristic Hay Profile table looks like:

Source: Job Evaluation Manual, Financial Management Board Secretariat, Northwest Territories.

The following is the short profile table without the scores. A4, A3,A2, A1 corresponds to 4UP, 3
UP, 2 UP, 1UP respectively. P1, P2, P3, P4 corresponds to 1 DOWN,2 DOWN, 3 DOWN, 4 DOWN.

%PS TO FIND PROFILE: IN COLUMN BELOW THAT CORRESPONDS TO STEP DIFFERENCE

BETWEEN AC & PS POINTS, READ PROFILE OPPOSITE % PS

ACTION PREDOMINATES AC-PS PROBLEM SOLVING PREDOMINATES

A4 A3 A2 A1 LEVEL P1 P2 P3 P4

87%

76%

66%

57%

50%

43%

38%

33%

29%
25%

22%

19%

16%

14%

12%

10%

If we look closer at part of the short profile table (now with the scores) , this is how the Action
Predominates and Level looks like

A4 A3 A2 A1 LEVEL

87% 29 26 45 32 27 41 33 29 38 35 30 35 36
32 32

76% 32 25 43 34 26 40 36 28 36 38 29 33 40
30 30

66% 36 23 41 38 24 38 40 26 34 42 27 31 44
28 28

57% 39 22 39 41 23 36 43 25 32 45 26 29 46
27 27

50% 42 21 37 44 22 34 46 23 31 48 24 28 50
25 25

43% 45 20 35 47 21 32 49 22 29 52 22 26 54
23 23

38% 49 19 32 51 19 30 53 20 27 55 21 24 56
22 22

33% 53 17 30 55 18 27 56 19 25 59 19 22 60
20 20

If we look closer at part of the same table (now with the scores), here is how the Problem Solving
Predominates looks like.

P1 P2 P3 P4

87% 38 33 29 40 34 26 41 36 23 42 37 21

76% 42 31 27 43 32 25 44 34 22 45 35 20

66% 45 29 26 46 31 23 47 32 21 49 32 19

57% 48 28 24 49 29 22 51 30 19 53 30 17

50% 52 26 22 53 27 20 55 27 18 56 28 16

43% 55 24 21 56 25 19 58 25 17 59 26 15
38% 59 22 19 60 23 17 62 23 15 62 24 14

33% 62 20 18 63 21 16 65 21 14 66 22 12

Example

Source: Job Evaluation Manual July 2001, Financial Management Board Secretariat, Northwest
Territories.

Let us use the above example to demonstrate how we derive the short profile.

The score for problem solving is 29.

The problem solving percentage is 25%

The score for accountability is 33.

From the step value table, we found that AC is 1 step up from PS.

So the job is a +1 or A1 or up1

Next look at the intersection of column A1 and the PS percentage 25%, we find the 3 possible
answers for the profile 65, 16, 19.

Normally, the middle number would be selected.

PROCESS OF ALLOCATING POINTS SUB FACTOR DEGREE

Total points in job evaluation plan: 1000
Weight of the factor skill:50%
Points assigned to skill:1000*.50= 500
Weights assigned to skill subfactors of education

and job knowledge, and experience and training:

education and job knowledge: 60%

experience and training: 40%

Points assigned to education and job knowledge: 500 *.60 = 300

Number of degree steps for subfactor education

and job knowledge: 7

Assign points to lowest degree (subfactor:

weight x factor weight = 0.60 x 0.50; % = point value) = 30 points

Highest point value (300) minus the point value for

the lowest degree (30) = 300 - 30: 270 Points

Divide the remaining degrees (6) into the remaining

points = 270 + 6: 45 points increments

Education/Job Knowledge Sub-factor:--

 Therefore: Degree 1 = 30 points

 Degree 2 = 30 + 45 = 75 points
 Degree 3 = 75 + 45 =I20 points
 Degree 4 = 120 + 45 = 165 points
 Degree 5 = 165 + 45 = 21 0 points
 Degree 6 = 210 + 45 = 255 points
 Degree 7 = 255 + 45 = 300 points