Employee Focus Groups
Improving performance management
Hay Group overview
Established in
1943
in
Philadelphia
87
offices in
49
countries
18
North
America
locations
2,600+
employees
7,000
clients globally
35
of the 50
“Globally Most
Admired”
479
of U.S.
Fortune 1000
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© 2014 Hay Group Inc. All rights reserved
How we organize our business
Building effective organizations
Leadership and
talent Reward services Leadership transformation Capability assessment Talent management Hay Group T rans form in g Learning: online diagnost ic s Executive rewards Job evaluation Reward Information Services Reward strategies
Hay Group Insight: employee and customer surveys Performance
management BEO solutions
Helping organizations work
Our purpose Our practice clusters
Our service lines
Compensation program - LCCC
Past
Lorain County Community College has always tried to make sure that the level of
compensation reflected both the marketplace and provided internal equity for staff.
The College contracted with the Hay Group in 2006 and 2010 to review our
compensation plan and to perform desk audits.
The resulting recommendations were implemented over time.
Present
Since the last study was performed during the depths of the recession, we feel it is time
to begin the process again to make certain our compensation plan reflects the current marketplace.
During this process we are reviewing the performance management process
Future
The College will again contract with the Hay Group to evaluate the compensation for
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© 2014 Hay Group Inc. All rights reserved
Performance management - LCCC
Future +
Since our existing performance evaluation instrument has not been updated in some time,
questions have persisted about the quality and validity of the instrument.
As important as the instrument itself, concerns have been raised about the training
offered to supervisory staff to prepare them to evaluate staff in a way that results in an opportunity to resolve differences and develop staff potential.
In an effort to address this issue, we will be building on the previous efforts by Staff Council
and work with Hay Group to develop an evaluation tool with the following goals:
Develop an evaluation instrument that is automated, easy to use, and is focused on
staff development more than discipline.
Train supervisors to treat the evaluation as an on-going conversation with periodic
updates throughout the year to draw out staff potential rather than an annual obligation.
Consider a tool that allows staff to formulate long-term individual development plans to
help them achieve their professional goals regardless of where they work in the future.
Since the evaluation process is also used as the basis for compensation increases, make
certain that the instrument is valid, tested and accepted by staff as a fair way to measure performance.
Today’s agenda
Job Evaluation Overview
External Competitiveness & Internal Equity
Performance Management
Group Discussion
Wrap-up
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01
Hay Group’s job evaluation methodology
World’s most widely-used job measurement system
Over two-third’s of the world’s largest 50 organizations use our job evaluation system.
Of the world’s 10 largest organizations, eight use our job evaluation system
Many of the world’s most admired organizations (e.g. ,GE, Home Depot, Wal-Mart,
Toyota, Caterpillar, Procter & Gamble) use Hay Group job evaluation systems
Many public sector and quasi-governmental entities in the U.S. and around the world
use this methodology
Relative worth of duties and responsibilities
The factors used measure the skill required to do the job, the effort made in the job and
the responsibility for the end results
Relative to standards/benchmarks
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© 2014 Hay Group Inc. All rights reserved
Basic premise
The Hay Group method uses three universal compensable elements to
measure the relative size of jobs
Jobs exist to achieve an end result
Accountability
To achieve this end result, jobholders must
address problems, create, analyze, and apply judgment
The jobholder requires knowledge and experience consistent
with the scale and complexity of the result to be achieved Accountability Problem Solving
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Accountability Problem Solving Know-How+
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Why should you evaluate jobs?
Job evaluation principles form the basis for:
Clarifying organization structure and job accountabilities
Ensuring market comparisons and reward are based on organization established
job content and size
Understanding the job-related skills, competencies, and key performance
indicators necessary to ensure job incumbents are successful
Work measurement
The power to understand how and where work is done
Work alignment
The power to align your people to deliver your business strategy
Work value
The power to know the value of work and how it links to business performance
Work fit
The power to create roles that unlock the potential of your people
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External Competitiveness &
Internal Equity
Pay philosophy
External Competitiveness and Internal Equity
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© 2014 Hay Group Inc. All rights reserved
TWO > ONE
Utilize a balanced approach when pricing jobs in the marketplace since neither approach is as effective by itself
Market Pricing
Job Evaluation
Strengths Shortfalls Strengths Shortfalls
Preserves
competitiveness with other organizations.
Reflects economic issues such as supply and demand of labor faced by management.
Tests the feasibility of compensation decisions that emphasize internal priorities.
The market does not reflect the value of work for your organization.
Direct title matching may not capture same
qualifications, activities, or results.
Jobs designed to meet the unique needs of your organization are likely not similar to jobs in other organizations.
Expresses the
organization’s culture and values.
Increases the accuracy and reliability of market pricing.
Reflects the value of the role or assignment according to your organizational priorities, and guides valuing of non-benchmark jobs/roles.
Does not take in to
account what competitors pay.
Internal comparisons may not reflect realities of the labor market.
Broad role descriptions may be difficult to match to external competitors.
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© 2014 Hay Group Inc. All rights reserved
Performance management – four basic components
Components of Performance Management
An effective performance management process has four basic components:
Dialogue
Performance management
Characteristics of Effective Performance Management Processes
A performance management process needs to ensure:
Alignment. That teams and individuals understand broader organizational goals and
strategies, and understand how what they do contributes to achieving those goals and strategies
Agreement. Individuals and team members understand and are in agreement about
each other’s responsibilities and accountabilities, and processes are in place to ensure that teams and/or individuals are not duplicating each others’ efforts
Accountability. Individuals and teams understand that they are responsible for
accomplishing the agreed upon results and activities, and that they will be held accountable for accomplishing them
Adjustment. Employees and teams monitor their progress against expected results
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We need
your
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© 2014 Hay Group Inc. All rights reserved
Performance management
Sharing ideas
What does good performance look like in your part of the organization? How should performance be measured?
Does the current performance management system provide a fair and accurate method
of evaluating your performance?
If you were in control, how would you differentiate between varying levels of
performance?
Do you have any past experience with performance management programs that worked
well or didn’t work well?
How can the performance management process motivate you to grow, develop, and
