Job evaluation and job classification
Job evaluation matrix provides dividends
Country Energy is a leading energy provider, managing Australia's largest energy supply network across 95 per cent of New South Wales.
In 2008 Country Energy engaged Hay Group to assist with three main issues relating to remuneration and job classification. Country Energy was seeking to develop a higher level of clarity for manager and non-manager pay rates; to refine the organisational structure following a restructure; and to determine job relativities within and between different divisions.
Additionally, Country Energy wanted to ensure a robust and equitable system for remuneration was in place during a period of industry change.
More clarity required for remuneration and job classification decisions
In order to provide Country Energy with a robust system for classification and remuneration decisions, Hay Group developed a job matrix which could be used within the evolving organisation. Underpinned by Hay Group methodology, the matrix included 150 benchmark roles.
“We wanted to measure how our salaries stacked up against the market for relevant comparable roles so that we could best position ourselves to retain our talent,” said Steve Howe, Group Manager Remuneration & HR Systems, Country Energy.
To achieve this, Hay Group:
- interviewed the executive team to understand their business drivers and gain their buy-in to the process;
- reviewed current position descriptions provided by Country Energy;
- conducted the evaluations using Hay Group’s job evaluation methodology;
- developed a job matrix based on the evaluation outcomes;
- reviewed the outcomes of the job matrix with key stakeholders;
- conducted a remuneration review for all roles, and provided Country Energy with an analysis of their current remuneration practices; and
- trained nominated internal Country Energy staff on the job evaluation methodology and how to use the job matrix as an ongoing support tool.
“It was a very positive outcome to be able to improve the way they can view relativities within and across all business units,” states Janet Lee of Hay Group.
An additional benefit of the project was that the job matrix gave Country Energy an additional tool to use when conducting a review of their organisational structure.
Benefits extremely useful and ongoing
“The work with Hay Group is proving extremely useful because I can now look at what our managers currently earn, see relativities both within their division and across other divisions and also where that individual sits relative to the market. It has made our annual remuneration process much more straight forward.” said Steve Howe.
Steve further explains, “in combination with our ePerformance process, I can now sit down and say ‘this is how you are performing’ on a rating scale. I can link that to their annual reviews, the salary range for that job and market rates for that type of role. Their performance on the rating scale will be relative to the salary range for that role.”
“I found Hay Group to be a very professional group, and I have dealt with many consulting firms over a long period of time, both within Australia and Overseas. Hay Group has the advantage of being a large, global organisation, but small enough to provide personal service. They have some very professional operators,” Steve remarked.