Reward Management
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Reward Management •Factor Comparison Method •Point Method •The Hay Job Evaluation System JOB EVALUATION
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Reward ManagementReward Management•Factor Comparison Method•Point Method•The Hay Job Evaluation System
•Factor Comparison Method•Point Method•The Hay Job Evaluation System
JOB EVALUATIONJOB EVALUATION
Factor Comparison MethodFactor Comparison Method• A scientific method designed to rank job roles
based on a breakdown of factors rather than the role as a whole.
• The ultimate goal of factor comparison is to assign the relative parts of each job role a financial value.
Reward Management: Factor Comparison Method
Factor Comparison MethodFactor Comparison Method
• Breaks down a job into a small
number of key factors, such as
skills, effort, knowledge,
responsibilities, and working conditions.
Reward Management: Factor Comparison Method
G G A A M M EE
Effort
Communication Skill
Responsibility
Leadership Skill
Working Condition
Example
Reward Management: Factor Comparison Method
ADVANTAGES:• The value of job is
expressed in monetary terms.
• Can be applied to a wide range of jobs.
• Can be applied to newly created jobs.
Reward Management: Factor Comparison Method
DISADVANTAGES:• Difficult to understand,
explain and operate.• Its use of the same
criteria to asses all jobs is questionable as jobs differ across and within organizations.
• Time consuming and costly.
Point MethodPoint Method
• The point method is an extension of the factor comparison method.
• Points are assigned to each factor after prioritizing each factor in order of importance.
Reward Management: Point Method
The procedure may be explained thus:1. Select key jobs. Identify the factors common
to all the identified jobs such as skill, effort, responsibility, among others.
2. Divide each major factor into number of subfactors. Each subfactor is defined and expressed clearly in the order of importance, preferably along a scale.
Reward Management: Point Method
The most frequent factors employed in point systems are:
1.Skill2.Responsibility/ Accountability3.Effort
Reward Management: Point Method
JOB FACTORS Percentage Weights Equivalent Points
I. SKILL 30 300
A. Technical SkillsB. Interpersonal SkillsC. Managerial Skills
51015
5010
150
II. EFFORT 20 200
A. Mental EffortB. Work Pressure
155
15050
III. RESPONSIBILITY 50 500
A. Impact on OperationsB. Responsibility over PeopleC. Responsibility over Company Assets
251510
250150100
TOTAL 100% 1,000 ptsReward Management: Point Method
ADVANTAGES:• Forces raters to look into all key
factors and sub-factors of a job.• Point values are assigned to all
factors in a systematic way eliminating bias at every stage.
• The methodology contributes to a minimum of rating errors.
DISADVANTAGES:• It is complex• Time consuming
Reward Management: Point Method
The Hay Job Evaluation SystemThe Hay Job Evaluation System
• It is the most sophisticated method of evaluating jobs jobs based in the point factor approach.
• It evaluates a JOB, not people who are working on that specific job.
• It is not based on performance, education, skills or current salary.
Reward Management: The Hay Job Evaluation System
A Hay job evaluation is comprised of:• the knowledge required to do the job whether practical or intellectual (Know HowKnow How)• the kind of thinking required to solve
the problems which the job commonly faces (Problem SolvingProblem Solving)
• the responsibilities assigned (AccountabilityAccountability)
• the work environment in which the job is performed (Working ConditionsWorking Conditions)
• ‘Know How’ is defined as the "sum total of every kind of knowledge and skill, however, acquired, needed for acceptable job performance."
• ‘Problem Solving’ is "the amount and nature of the thinking required in the job in the form of analyzing, reasoning, evaluating, creating, using judgment, forming hypotheses, drawing inferences, arriving at conclusions, etc."
• ‘Accountability’ is "the answerability for action and its consequences. The measured effect of the job on end results in the organization."
• ‘Working Conditions’ assess the environment in which the job is performed.
Thank You
Ana Olmedo
REWARD MANAGEMENT>Factor Comparison Method >Point Method >The Hay Job Evaluation System
