Wages & Salary Admin

Report
Job Evaluation
Two Point-Factor Methods

Factor Evaluation
System
Developed in 1977 by the
Office of Personnel
Management for nonsupervisory general
schedule employees. It
incorporates many of
the characteristics of
the Lott, Benge, and
NEMA methods.

Hay Method
Dates back to the early
50's and is one of the most
popular methods in use
today. It is particularly
popular for evaluating
executive, managerial, and
professional positions as
well as nonexempt clerical,
blue collar, and technical
jobs.
Lawrence Wagoner
Universal Factors
Four Popular Methods
BASS
NMTA
Skill
(4/0)*
Working Condition
(3/0)
Responsibility
(1/0)
Skill
(3/15)
Effort
(2/10)
Responsibility
(4/20)
Job Conditions
(2/10)
* (SUBFACTORS/DEGREES OR LEVELS)
Lawrence Wagoner
Universal Factors
Four Popular Methods
Hay and Purves
Know How
(3/15)
Problem Solving
(2/13)
Accountability
(3/15)
Factor Evaluation System
Knowledge
Personal Contact
(2/9)
Purpose of Contact
Supv Control Physical Demands
(3/5)
Work Environment
Guidelines
(2/5)
Complexity
(3/6)
Scope & Effect
(2/6)
Lawrence Wagoner
Combining Point-Factor
and Factor-Comparison Methods
A critical check of the
results of a POINTFACTOR job evaluation
involves the use of
FACTOR COMPARISON.
It is used to be sure that
the factor points assigned
to each job makes sense
relative to a factor
comparison process.
Lawrence Wagoner
Job Evaluation Committee
Essential to the
success of all
job evaluation
processes is the
presence of
expert judgment.
Lawrence Wagoner
Job Evaluation Committee
Expert judgment is typically shaped
by the level of knowledge shared by
the evaluators of the work
environment....Their understanding
of the nature of the work being
performed, and....Their capacity
to process information
and data and make sound
judgments.
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Job Evaluation Committee
The quality of the output of any job
evaluation process using point
scored compensation factors
relates directly
to the quality of
decisions made
by those doing
the ratings, and....
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Job Evaluation Committee

It is reasonable to assume that given
the complex nature of work
environments, accuracy in job
evaluation requires the knowledge and
skill of more than one individual,
and....

The logical consequence is the job
evaluation committee.
Lawrence Wagoner
Job Evaluation Committee

A job evaluation committee may
consist of one to three permanent
members (at least one from the comp
department) and rotating members
representing the unit(s) whose jobs
are being evaluated.
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Roles Of The Committee

Rank And Rate Jobs

Select A Job Evaluation
Methodology

Choose Benchmark Jobs
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Role Of The
Compensation
Department

Provide Committee Representation

Provide Committee With Staff Specialists

Identify Benchmark Jobs

Provide Training For Committee Members
Lawrence Wagoner
Factor Evaluation
System
The FES differs from the other pointfactor methods in that it contains
three stages of descriptive data not
simply a defined set of universal
compensable factors, subfactors,
and degrees.
The three stages are:
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Factor Evaluation System

Primary Standards (9)

Factor-level Descriptions For The Series
(60+)

Benchmark Jobs That Cover The Full
Range Of Pay For The Jobs In Each
Occupation Or Series.
Lawrence Wagoner
FES Factor Description
Table
FACTOR
LEVELS
Knowledge
Supv Control
Guidelines
Complexity
Scope/effect
Pers Contact
Purp Of Contact
Phys Demand
Work Environment
Total Points
POINTS
50-1850
25-650
25-650
25-450
25-450
10-110
20-220
5-50
5-50
4480
% TOTAL
41.3
14.5
14.5
10.0
10.0
2.5
4.9
1.1
1.1
9
5
5
6
6
4
4
3
3
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FES Exercise

The FES process is described in detail in the
text on pages 257 through 277.

Additionally, a job description for a lead
programmer taken from chapter 7 has been
evaluated on pages 271 through 274 using the
FES process and the results have been
summarized on a "factor evaluation system
position evaluation statement" appearing on
page 276.
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FES Quality Check

There is a direct relationship between the selected
level of the knowledge factor and levels selected
of all other factors.

The knowledge or skill requirements of a job drive
the evaluation rating, while other compensable
factors provide additional information to "fine
tune" the final rating.

Review figure 9-5 "FES knowledge level
conventions" for further explanation or
description of this point.
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Sore Thumbing
Reviewing ratings using
some kind of spreadsheet
layout assists in
identifying factor ratings
that don't make sense.
This analysis is often
called "sore thumbing"
because an inappropriate
rating stands out like a
sore thumb.
Lawrence Wagoner
Hay Guide Chart-Profile
Method
The Hay Guide
chart-profile
method uses three
universal factors,
eight subfactors,
and forty-three
degrees and levels
to evaluate jobs.
They are as
follows:
Know-How

Practical procedures,
specialized knowledge, And
scientific discipline.
(8 levels)

Managerial (4 levels)

Human relations (3 levels)

Plus 3 degree choices per
grid.
Lawrence Wagoner
Hay Guide Chart-Profile
Method
Problem-Solving



Thinking
environment
(8 levels)
Thinking challenge
(5 levels)
Plus 2 degree
choices per grid
Accountability




Freedom to act
(7 levels)
Job impact on end
results (4 levels)
Magnitude
(4 levels)
Plus 3 degrees per
grid.
Lawrence Wagoner
Hay Method

The descriptions that form the rows
and the columns of the guide charts
provide a measure of the level of
difficulty, or importance, of each
factor.

The KH and AC guide charts provide
actual scores. The PS guide chart
provides a percentage that identifies
the amount of KH used in solving
problems.
Lawrence Wagoner
Hay Method
The Guide Charts Have Both Standardized
And Customized Features:

The geometric scales use the same values with
each step, reflecting the 15% perceptible
difference in values theory discussed in chapter
six.

The number of rows and columns of each guide
chart can be altered to fit the character and size of
the client.
Lawrence Wagoner
Hay Method
The evaluation
process generally
begins with the
highest valued
compensable factor
and proceeds in
order to the lowest
weighted factor.
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Hay Method
KNOW-HOW

Rows describe depth and breadth of job
knowledge required to perform job
assignments.

Columns describe management breadth
relative to such requirements as planning,
organizing, reviewing, and control.

Within each column there is a third element
that measures human relations skill.
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Hay Method
PROBLEM-SOLVING


Rows identify levels of thinking.
Columns identify thinking challenge.
When the most appropriate grid and
corresponding percentage has been
identified, a point value is determined by
multiplying the selected PS% (x) the
previously determined KH points.
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Hay Method
ACCOUNTABILITY

Rows measure freedom to act

Columns measure the magnitude of
the impact of the job on end results

Inside each column is a third element
that measures the job impact on end
results (4 per column)
Lawrence Wagoner
Hay Method Example

The same lead-programmer analyst job
evaluated earlier in this chapter using the
FES method is re-evaluated in pages 282294 using the hay method.

Figure 9-10 (pg 284) is a ”Hay Position
Evaluation Statement" that contains the
evaluation scores for the lead-programmer
analyst in accordance with the hay guide
chart-profile method.
Lawrence Wagoner
Hay Method
Quality Checks And Patterns
PROFILING

KH and PS are closely linked in the guide
charts and they tend to parallel each other
with respect to their alpha numeric locator
codes. As KH requirements increase for a
job PS enjoys a concomitant growth.
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Hay Method
Quality Checks And Patterns
PROFILING

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.
Lawrence Wagoner
Hay Method
Quality Checks And Patterns
PROFILING

Jobs higher in PS points than AC
points are typically staff and
administrative in nature, and....

Jobs higher in AC points than PS
points are typically action or line
jobs, and....
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Hay Method
Quality Checks And Patterns
PROFILING

Jobs with essentially the same AC
and PS points tend to have an
administrative/action orientation.

The profile is determined by
identifying the step difference
between PS and AC....
Lawrence Wagoner
Hay Method
Quality Checks And Patterns
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.
Lawrence Wagoner
Hay Method
Quality Checks And Patterns
PROFILING

To convert all of this data into a profile turn to
page 287 in your text and find the PS
percentage, identified in the sample problem,
in the left hand column (33%) and move
across that row until you find the KH points in
the first row that correspond with those
determined in your sample problem (230)....
The number found at this intersection (87)
becomes profiling CONTINUED...
Lawrence Wagoner
Hay Method
Quality Checks And Patterns
PROFILING

The number you locate in the left hand
column of the profile table (figure 9-11b) and
match up with the appropriate step level (1
down) located on the horizontal axis.

The resulting set of numbers is the job
profile (38 33 29). This profile defines the
percentage of points assigned to each of
the three universal factors.
Lawrence Wagoner
Hay Method
Quality Checks And Patterns
PROFILING

All to the job profiles lined up in
order of point totals will provide
the organization with a profile
pattern that further validates the
evaluation effort.
Lawrence Wagoner
Hay Method
Quality Checks And Patterns
PROFILING

As a rule, KH points as a percentage of
the total tends to decrease as job value
increases.

PS and AC points as a percentage of the
total tend to be lowest at the lower valued
jobs.
Lawrence Wagoner
Hay Method
Quality Checks And Patterns

PROFILING
Profile patterns are also indicators of job rank
within an organization:
General Mgr
Plant Mgr
Operations Mgr
Office Mgr
KH-PS-AC
41-23-36
44-22-34
56-19-25
60-17-23
Lawrence Wagoner

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