The Effectiveness Of Hay Groups Reward System Business Essay

The Effectiveness Of hay assemblages Reward System Business EssayThis cover aims to examine and evaluate the reenforce constitution that convert Group, a global management consulting social club, develops to meet its clients needs. Specifically, the compensation and services system of the organization is analyzed and discussed in depth, by investigating the internal processes toward this function and by assessing how the revenge system affects the overall performance of convert Group. The performance of the reward system Hay Group has positive for its clients is evaluated by examining the results that clients experience (i.e. size, profitability, reputation, market share, competitiveness, equity value, and leadership position)Company DescriptionCompany InformationHay Group is a human resources consulting firm run globally, which aims at dealing with people-related railway line issues, while transforming the clients strategy into reallyity. Specifically, it is a global co mpany operating since 1943, composed of over 2600 specialists controling in 85 offices in 47 countries, focusing on helping private, public or non-profit organizations realize and understand their effectiveness.Areas of ExpertiseThe Company helps its clients by designing and analyzing jobs, dealing with their reward system (i.e. compensation and benefits) as well as developing performance and talent management systems.AchievementsHay Group has managed to become the leading company in the effort it is operating. The depth and breadth of knowhow not only has made customers trust the recommendations it provides, but also has become the reason for further achievements. Hay Group gains ground thank to the database of organizational management information it has built, which has been awarded as the worlds most comprehensive and rich database in the related field.The creation of Hay Job Evaluation methodology, which is used oecumenical by over 8000 companies, is one of Hay Groups most significant accomplishments, which offers international recognition. Hay Group, through this method, stresses the link between furrow success, employee motivation, reward, and employee contribution in the business strategy of the company. Specifically, it wants that firms reestablish discipline at bottom compensation programs and better align pay with value creation to ensure that Hay Group tries to develop reward programs that reflect each organizations business strategy and serve the needs of both firms and employees (HayGroup, 2001).Hay Group Compensation and Benefit FunctionHay Group has employs a range of methods to develop its reward system, on which the clients compensation system is also based on. The various components that Hay Group uses in developing compensation and benefit systems are divided into five groupsReward StrategiesJob EvaluationTotal Reward FrameworkReward Information ServicesBenefitsReward StrategiesEach company needs a reward program that should be in ali gnment with the overall business strategy and organizational culture. Only through this alignment a firm can ensure that both employees and the organization itself each fulfill their needs. Hay Group when dealing with its clients, it tries to provide a reward strategy that creates real business value.One of the first steps is to set up a salary system, which is an essential tool that companies must consider if they want to harbor their employees. What real Hay Group does, is to balance the technical, business and behavioral factors involved in remuneration. It does that by working closely in an ongoing basis with employees of the client company, something that helps Hay Group understand the firms business strategy, model, overall culture, resource capabilities, and current reward system. The demographics of employees are then investigated and according to these, priorities for salary management programs are set. After doing so, potential base salary equity issues are analyzed, the competitiveness of the firms salary program is measured and finally, Hay Group the salary program is communicated to the firms members to guarantee the programs clear understanding.Hay Group is promoting the idea of the developing a reward architecture, which is a method to define why people are paid. By answering the question what you reward your people for, the company focuses on employees (i.e. demographics and needs of different groups), controls costs and ensures that the right message is delivered to employees. By conducting employee surveys aimed at the determination of what is valued most and by spirit at results, Hay Group helps in determining whether reward system outcomes are aligned with the firms reward strategy.Investigating whether the compensation system stands in a satisfactory level in respect to competitors is also part of Hay Groups tactics. Benchmarking its clients as well as it selfs reward system is an effective technique to direct if remuneration is compet itive enough to recruit and retain personnel. To achieve that Hay Group provides access to PayNet, a database that enables companies to benchmark pay and benefits, interpret data, make comparisons, hear implications and uncover potential issues in respect to their reward system.It is significant to mention that Hay Group when developing reward systems, it distinguishes reward objectives in respect to short-run or long-term incentives. Short-term incentives usually include efforts toward culture cohesion, commitment, engagement and specific team targets, while long-term incentives involve the alignment of rewards with shareholder interests, retain of people and competitiveness of the compensation system.Total Review FrameworkCompensation systems must be aligned with the overall strategy of the company and represent the business reality in order to be effective. Hay Group, to have a clearer understanding of its clients reward systems, engages in a holistic model, presented above, wh ich has as a head start point the strategy of the firm.untitled.bmpThrough this model Hay Group can better understand the current remuneration program of its clients, and then develop the seize base salary that represents the firms requirements and reward strategy.Job EvaluationJob evaluation is a significant component in measuring and determining the value of jobs within an organization, a technique that helps in the establishment of the pay structure. Hay Group has developed a number of job evaluation methodologies to enhance its efforts it created Hay Group Spectrum, a practice considered to be the next generation HR solution.As mentioned by Aspasia Voulgari, one of the Managing Consultants of Hay Group based in Athens (Greece), Hay Group realized that companies started losing the real value of understanding their work with the application of job evaluation by following a fragmented approach this, emphasise the necessity for creating a more holistic approach that combines rewa rd decisions, talent management and structuring work. Jobs, employees, performance, structure and pay can be connected, and, in that way, work measurement, work alignment, work fit, and work value are united. st.bmp