JOB EVALUATION (Hay System)

Damascus 6 March/ 2012

Presenter: Safwat Kabbani

04 March 2012

What is Job Evaluation (JE)?

Job evaluation is a system for logically and fairly ranking jobs in an organisation by comparing one job against a predetermined scale. Work with more complexity or responsibility should receive more weight than work with less complexity or responsibility. The JE evaluates the job, not the person doing it. Emphasis on organisational reviews.
JE is Comparative Judgmental Structured Job Centered JE is not Absolute Scientific Unstructured Incumbent Focused

04 March 2012

What is the Purpose of Evaluating a Job?

Internal equity and fairness. To support an efficient and effective organisation structure. Common job language and standards globally. Support external benchmarking of job levels against the external market to ensure competitive pay. Legal, regulatory or trade union requirements where applicable.

04 March 2012

What Do You Know About The Hay Method?

The most widely used and recognised method of job evaluation in the world.

INPUT
Accountability Know-How Problem Solving

OUTPUT

PROCESS
Three dimensions which feature in every job. Appropriate level for each dimension is determined and scored. Total score gives relative weight of the job in a company.
04 March 2012 4

The Hay Evaluation Factors

Three Charts Know-How

Eight Judgement Factors Job Knowledge Managerial Scope Human Relation Skills Thinking Environment Thinking Challenge Freedom to Act Impact Magnitude

Problem Solving

Accountability

04 March 2012

Internal Checks Some Elements of Hay are Hierarchical

KH PS ACC

04 March 2012

The Principle
1 2 3

Jobs exist to achieve an end result

To achieve this, job holders must address problems, create & analyse solutions and apply judgement

Therefore, the job holder requires a level of knowledge and experience suitable for the scale and complexity of the deliverables

Know-How

Problem Solving

Problem Solving

Accountability

Accountability

Accountability

04 March 2012

Hay Translated to Job Group/Salary Group and Pay

Job Evaluation Hay Score

Pay

Job Group

Salary Group

$$$

04 March 2012 8

Job Weight
Know-how score + Problem solving score + Accountability score = Total score

Total score = Job Weight

Job Weight => Job Group => Salary Group => Remuneration
04 March 2012 9

JG/SG Bands
Y

04 March 2012

10

When to seek JE services?

04 March 2012

11

5 Test Questions
Talent issue? Has the job substantially changed to warrant a review? Is it a permanent job? Does the evaluation request have the right support? Could the job be evaluated (slotted) by using Job Ladders or Job Families?

Organisation review

04 March 2012

12

5/5 Could the Job be Evaluated (Slotted) by Using Job Ladder or Job Family?

Leader

Regional Manufacturing Leader

RE JG Z Refinery X GM RE JG Y JG X Refinery Y GM JG Y Refinery Z GM JG Z

RE JG X

Ladder

Family

GM = General Manager RE = Reservoir Engineer

Website

04 March 2012

13

Can a position be benchmarked/slotted in an organisational archetype?

Regional Manufacturing Leader

Refinery X GM

Refinery Y GM

Refinery Z GM

Production Manager JG Z Maintenance Manager JG Y HSSE-SD Manager JG X

Production Manager JG Y Maintenance Manager JG X HSSE-SD Manager JG W

Production Manager JG Y HSSE-SD Manager JG W

Archetype

GM = General Manager

04 March 2012

14

Example Business Need Governance

JG 3 20 % 30 % 50 %
Department X 170 jobs in JG5-3

Agreement between Business Line HRiB/Skillpool Manager JE JE Accountability Matrix

04 March 2012

15

Q&A

Date 04/03/2012

04 March 2012 Enter document title in Footer (Insert > Header & Footer > Apply to All)

16 16

What information is needed for JE? 1/2

Job Description & Organisation Chart

Job Title Position Number Purpose: High level statement on WHY the job exists Relevant Dimensions:
Dimensions over which the job has control or influence Type of jobs impact (influence) on the dimension Example: Budget, payroll accountability, Opex, Capex (in USD), proceeds (sales volumes)

Organisation chart:
Hierarchy Reporting relationships Including Job Group details of supervisor/manager and peers; provide Salary Group details if surrounding jobs have not yet been evaluated Number of subordinates, staff in the team/organisation

04 March 2012

17

What information is needed for JE? 2/2

Job Description & Organisation Chart Key Accountabilities: 5-7 concise statements - relevant, not a long list necessary Required Knowledge and Experience: Type of education Years and type of relevant experience - list of competencies is not adding value, possibly provide only 2-3 differentiating competencies Key Challenges: Must be time/country specific - repeat of accountabilities not necessary

Example of standard Job Description here

04 March 2012 18

1. A new (additional) position

Is it the same/similar as an existing role? YES => slot NO
Is the reporting line the same as peers? YES => slot What is the JG (JGs) of peer(s) => slot Is the content of the role different? NO => slot

Does the content of the role take elements away from other positions/peers around this role? NO => slot YES => If these changes are significant then there is a case to refer the organisation unit for review by JE.

04 March 2012

19

CEOs Views
Can you recall the key elements of Peter Vosers view of Effective Organisations that he expressed he would like to further embed in Shell?

Some of Peter Vosers principles/views: Fewer organisation levels. Speed up decision-making. Single Point Accountability. Commercial Impact. Less strategy and more doing/implementing.

04 March 2012

20

Example of Organisation Chart

Y ORGANISATION Process Manager JG 2 X FTE

Operations Manager 1 JG 3 X FTE

Operations Manager 2 JG 4 X FTE

Operations Manager 3 JG 4 X FTE

Senior Team Manager 1 JG 4 X FTE

Senior Team Manager 2 JG 5 X FTE

Senior Team Manager 3 JG 5 X FTE

Specialist 1 JG 5 X FTE

Specialist 2 JG 5 X FTE

Senior Team Manager 4 JG 5 X FTE

Senior Team Manager 5 JG 5 X FTE

Team Manager 1 JG 6 X FTE Team Manager 2 JG 6 X FTE Team Manager 3 JG 6 X FTE Team Manager 4 JG 6 X FTE Team Manager 5 JG 6 X FTE Team Manager 6 JG 6 X FTE Team Manager 7 JG 5 X FTE Team Manager 8 JG 5 X FTE

Team Manager 9 JG 6 X FTE Team Manager 10 JG 6 X FTE Team Manager 11 JG 6 X FTE Team Manager 12 JG 6 X FTE Team Manager 13 JG 6 X FTE

Team Manager 14 JG 6 X FTE Team Manager 15 JG 6 X FTE Team Manager 16 JG 6 X FTE Team Manager 17 JG 6 X FTE Team Manager 18 JG 6 X FTE

Team Manager 19 JG 6 X FTE Team Manager 20 JG 6 X FTE Team Manager 21 JG 6 X FTE

Team Manager 22 JG 6 X FTE Team Manager 23 JG 6 X FTE Team Manager 24 JG 6 X FTE

Team Manager 25 JG 6 X FTE Team Manager 26 JG 6 X FTE

Team Manager 27 JG 6 X FTE Team Manager 28 JG 6 X FTE

Shown JG levels are illustrative

Back
04 March 2012 21

Job Evaluation in further Support Roles

Although Job Evaluation should not be used to solve Pay, Talent or Resourcing issues, JE is related to some activities in these areas: Pay Benchmarking JE supports the Pay Benchmarking process by reviewing and calibrating marker/benchmark jobs in Shell & other companies. Succession planning JE can test the structure of an organisation for logical successor jobs of managerial jobs. But do not forget JE looks at jobs not people. Resourcing JE can provide advice on appropriate job levels for internal and external resourcing, connected as well with required job competencies.
04 March 2012 22