The HAY System of Compensation

Title : The HAY System of Compensation

author: Craig Skenes and Brian H. Kleiner

Background :

Edward Hay and other associates of the Hay Group, developed the Guide Chart-Profile Method of Job Evaluation in the early 1950’s. At the time there were many other job evaluation processes in use, however, the Hay Group’s method proved to be very unique and revolutionary. This method was different from other job evaluation processes in that its evaluation crite- rion was that of factor comparison. The Hay Group (to be referred to as the Group) believed that there were many factors common to all jobs, but there were only a few factors that were significant enough so as to observe differ- ences between different types of jobs. This factor comparison process thus allowed evaluating both non-exempt and exempt types of jobs. The Guide Chart-Profile Method was truly unique because it offered an organisation the capability of evaluating managerial jobs, positions that conventionally were very difficult to describe and evaluate by other evaluation processes.


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