This paper aims to study and evaluate the praise system that Hay Group, a global management consulting company, grows to meet its clients needs. Specifically, the reimbursement and benefits system of the business is examined and discussed in depth, by investigating the inner functions toward this function and by evaluating how the pay back system affects the entire performance of Hay Group. The performance of the praise system Hay Group is rolling out for its clients is examined by analyzing the results that clients experience (i. e. size, profitability, reputation, market share, competitiveness, equity value, and management position)
Hay Group is a recruiting consulting firm operating globally, which aims at working with people-related business issues, while transforming the clients' strategy into actuality. Specifically, it is a global company operating since 1943, composed of over 2600 specialists working in 85 office buildings in 47 countries, concentrating on helping private, general public or non-profit organizations realize and understand their potential.
The Company helps its clients by designing and analyzing careers, dealing with their prize system (i. e. compensation and benefits) as well as expanding performance and talent management systems.
Hay Group has were able to become the leading company on the market it is working. The depth and breadth of knowhow not only has made customers trust the recommendations it provides, but also offers become the reason behind further achievements. Hay Group benefits ground because of the data source of organizational management information it has built, which has been honored as the world's most extensive and rich repository in the related field.
The creation of Hay Job Evaluation methodology, which is used worldwide by over 8000 companies, is one of Hay Group's most crucial accomplishments, which offers international popularity. Hay Group, through this technique, stresses the link between business success, employee motivation, compensation, and staff contribution available strategy of the company. Specifically, it desires that companies "reestablish willpower within reimbursement programs and better align pay with value creation"; to ensure that Hay Group will try to develop reward programs that mirror each organization's business strategy and provide the needs of both businesses and employees (HayGroup, 2001).
Hay Group has uses a variety of methods to develop its reward system, which the clients' payment system is also predicated on. The various components that Hay Group uses in expanding compensation and profit systems are split into five categories:
Total Praise Framework
Reward Information Services
Each company requires a reward program that needs to be in positioning with the entire business strategy and organizational culture. Only through this alignment a firm can ensure that both employees and the organization itself each accomplish their needs. Hay Group when dealing using its clients, it attempts to give a pay back strategy that creates real business value.
One of the first steps is to set up an income system, which is an essential tool that companies must consider if indeed they want to maintain their employees. What actually Hay Group will, is to balance the specialized, business and behavioral factors involved in remuneration. It can that by working strongly within an ongoing basis with employees of the client company, something that helps Hay Group understand the firm's business strategy, model, overall culture, resource capacities, and current compensation system. The demographics of employees are then looked into and corresponding to these, priorities for salary management programs are arranged. After doing so, potential foundation salary collateral issues are examined, the competitiveness of the firm's salary program is assessed and finally, Hay Group the salary program is communicated to the firm's users to ensure the program's clear understanding.
Hay Group is promoting the thought of the creating a reward architecture, which really is a method to specify why people are paid. By responding to the question "what you encourage your people for", the company targets employees (i. e. demographics and needs of different groups), regulates costs and means that the right note is delivered to employees. By executing employee surveys aimed at the determination of what is appreciated most and by looking at results, Hay Group helps in determining whether incentive system outcomes are aligned with the firm's reward strategy.
Investigating whether the reimbursement system stands in a reasonable level in respect to rivals is also part of Hay Group's techniques. Benchmarking its client's as well as it self's reward system is an effective technique to identify if remuneration is competitive enough to recruit and hold on to personnel. To achieve that Hay Group provides usage of PayNet, a repository that allows companies to benchmark pay and benefits, interpret data, make comparisons, identify implications and uncover potential issues according to their compensation system.
It is significant to mention that Hay Group when developing compensation systems, it distinguishes prize objectives in respect to short-term or long-term incentives. Short-term incentives usually include initiatives toward culture cohesion, determination, proposal and specific team focuses on, while long-term incentives involve the position of rewards with shareholder passions, retain of people and competitiveness of the payment system.
Compensation systems must be aligned with the overall strategy of the company and represent the business reality to become effective. Hay Group, to have a clearer knowledge of its clients' prize systems, engages in a alternative model, shown above, which includes as a starting place the strategy of the organization.
Through this model Hay Group can better understand the current remuneration program of its clients, and then develop the correct base salary that presents the firm's requirements and pay back strategy.
Job evaluation is a significant part in measuring and determining the value of jobs within an organization, a technique that helps in the establishment of the pay framework. Hay Group is rolling out a number of job analysis methodologies; to enhance its attempts it created Hay Group Spectrum, a practice regarded as "another era HR solution".
As stated by Aspasia Voulgari, one of the Managing Consultants of Hay Group located in Athens (Greece), Hay Group became aware that companies began losing "the real value of understanding their work" with the use of job evaluation by carrying out a fragmented methodology; this, emphasized the need for creating a more holistic approach that combines pay back decisions, talent management and structuring work. Jobs, employees, performance, structure and pay can get in touch, and, in that way, work measurement, work position, work fit, and work value are united. st. bmp