Deciding what a role is worth is one of the biggest, and most debated, decisions a company makes.
Two people can have similar titles, work the same hours, and sit in the same office. But their decisions, their responsibilities, and the skills their jobs need can be very different. Without a fair way to measure those differences, pay talks turn into a negotiation game. The outcome depends more on who asks for more, not on what the job actually needs.
That is the problem the Hay System was built to solve.
In this guide, we cover what the Hay System is, how Hay grades and Hay points work, how the system connects to Korn Ferry today, and how companies put it into practice. We also cover where job evaluation stops doing its job. Hay grading shows you how a role is built and where it sits in the company. It does not show you how well the person in that role is actually doing, growing, or improving. That is a different job, and both matter.
What is the Hay System?
The Hay System is a job evaluation framework. It measures and compares the value of different roles using clear, factual criteria, not job titles, seniority, or who negotiates the hardest.
Edward N. Hay, an American management consultant, built the framework in the 1940s. It has since become one of the most used job evaluation methods among large and mid-sized companies around the world. Korn Ferry runs it today (more on that below).
By judging every role the same way, the Hay System helps companies:
- Compare roles across totally different departments, like finance, engineering, HR, and operations
- Build salary bands and pay structures based on role complexity, not office politics
- Create more consistent, auditable pay structures that support pay equity
- Give employees a clear view of what sets their grade and how to move up
Larger companies, public sector groups, and global businesses use the Hay System most. It works well anywhere that needs one consistent method across many departments, locations, or business units.
The Hay System and Korn Ferry: What HR Teams Need to Know
Maybe you searched for the Hay System and found terms like "Korn Ferry Hay Method," "Hay Group," or "Korn Ferry Hay Group Guide Chart." Here is what those mean.
Edward N. Hay built the framework in the 1940s through his firm, Hay Group. For decades, Hay Group was the top name in job evaluation and pay consulting worldwide.
In 2015, Korn Ferry bought Hay Group. That brought the whole method, including the Hay Guide Chart, under the Korn Ferry name.
Here is what that means in practice.
- These terms are commonly used to refer to the Hay job evaluation methodology and its related Korn Ferry materials: Hay System, Korn Ferry Hay Method, Hay Group Method, and Hay Guide Chart-Profile Method
- The Hay Guide Chart is a licensed Korn Ferry product. Companies typically work with Korn Ferry or a trained, certified consultant to use the official guide charts
- Korn Ferry provides training, certification, and support for companies running formal Hay evaluations
- The current methodology continues to use the core Hay concepts of knowledge, problem-solving, and accountability
If your company is trying Hay-based job evaluation for the first time, you will likely work with Korn Ferry or a Korn Ferry-certified HR consultant to use the licensed tools.
What Are Hay Points?
Hay points are the number scores given to a job after it goes through the Hay System's three main factors.
Every job gets scored on each factor on its own. Those scores are then weighted and added up to make the role's total Hay point score. The higher the score, the more complex and demanding the role is considered within the evaluation framework.
Hay points make it possible to compare very different jobs. A finance manager and a software engineering manager work in completely different worlds. Different skills, different daily tasks, different results. But if both roles need similar levels of skill, face similarly hard problems, and carry similar weight for the business, they can end up with close Hay point scores. That shared score can help organizations place both roles within comparable grades or salary structures, even though the jobs look nothing alike.
What is a Hay Grade?
A Hay grade is the level given to a job based on its total Hay point score. It ties closely to job leveling, which is the broader practice of setting consistent tiers across a company.
Jobs with similar Hay point totals get grouped into the same grade or salary band. These grades form the backbone of a company's pay structure. The Hay grade a role receives typically determines which salary band it falls into, although the exact salary range still depends on the company's own compensation structure and market data.
Here is how grades usually match up to role types, though the exact numbers differ by company.
A Hay grade measures how big and complex the role is, not how well the person does the job. A great performer in a grade 10 role still holds a grade 10 role. A weak performer in a grade 16 role still holds a grade 16 role. The grade belongs to the job, not the person.
A Hay grade defines the role. What defines success in it?
Hay grading shows how complex a role is and where it sits in the company's structure. It does not show whether the person in that role is meeting goals, moving forward, or needs help.
That is where performance management steps in. ThriveSparrow is an employee experience platform that helps teams link role expectations to performance reviews, goals, and 360° feedback, so managers can see not just what a role requires, but how the person in it is actually doing. In practice, that means managers can set goals against what the role expects, run structured reviews on a regular cadence, and pull in feedback from peers, instead of piecing that picture together from memory once a year.
See how ThriveSparrow connects role expectations to performance →
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Hay Grade vs. Hay Level: What's the Difference?
Companies use these two terms in different ways, and that causes real confusion. Here is the simple difference.
In many organizations, a Hay grade is used as part of the job's pay classification or grade structure. When someone says "I'm a Hay grade 14," they are referring to the grade assigned to their role within their company's structure.
Hay level usually means the spot within a hierarchy. Companies that number their levels, instead of calling them "grades," use this word. Some say "level 12," "level 15," or "level 18" where others would say "grade 12," "grade 15," or "grade 18."
Either way, the classification is typically based on Hay point scores and helps show where a job sits within the company's grade or pay structure.
How the Hay System Works: The Three Core Factors
The Hay System checks every job against three main factors. Some companies add a fourth factor, working conditions, mostly for jobs outside an office.
Factor 1: Knowledge (Know-How)
Knowledge measures all the skill needed to do the job well. The University of Waterloo HR team defines it as every kind of knowledge and skill, however a person got it, that the job needs to be done right.
Three parts get checked here.
Technical and professional depth. How specialized is the knowledge the role needs? A generalist coordinator scores lower than a compensation and benefits specialist or a software architect.
Breadth of management. Does the role need planning, organizing, directing, or leading people or resources? A team lead scores higher than an individual contributor. A department head scores higher than a team lead.
People and relationship skills. How much of the job depends on influencing, coaching, negotiating with, or motivating others? A client-facing role with complex account work scores higher than a purely technical role.
Factor 2: Problem-Solving (Thinking Challenge)
Problem-solving measures how much independent thinking the role needs.
Two parts get checked here.
The thinking environment. How much structure, precedent, or guidance exists when problems come up? A role with clear steps and known answers scores lower than a role that faces new, unclear situations with no playbook.
The thinking challenge. How hard are the problems? How much analysis, judgment, creativity, or reasoning does it take to solve them?
Problem-solving is shown as a percent of the knowledge score. That is because you can only think with what you know. A role with deep technical knowledge but clear, structured steps might score 25% on problem-solving. A role with similar knowledge, but facing constant change and unclear challenges, might score 50% or higher.
Factor 3: Accountability
Accountability measures how much the role affects business results.
Three parts get checked here.
Freedom to act. How much independent authority does the role carry? Does the person make decisions, or carry out decisions someone else made?
Magnitude. How big is the budget, revenue, assets, team, or work the role covers?
Impact. Does the role affect business results directly or indirectly? A CFO who owns the P&L has a more direct impact than a finance analyst who feeds input into someone else's decisions.
Factor 4: Working Conditions (Where Applicable)
Companies use this factor for roles with physical demands, tough environments, sensory strain, or safety risks. It fits best for:
- Manufacturing, logistics, and field operations roles
- Healthcare and clinical positions
- Construction and facilities roles
- Any role with real physical effort, hazard exposure, or hard working conditions
How Organizations Implement Hay Job Evaluation: A Practical Overview
Setting up a Hay-based job evaluation takes several steps. Here is how companies usually do it.
Step 1: Prepare accurate job descriptionsAn evaluation is only as good as the job description behind it, and that description comes from solid job analysis. Each role needs a description that spells out what the role does, what decisions the person makes, what they are accountable for, who they work with, and what skills they need. Weak job descriptions lead to weak evaluations.
Step 2: Assemble an evaluation committeeOne person alone should not run a Hay evaluation. A common approach is a trained group of HR staff and senior managers who understand the company's roles well. Companies typically work with Korn Ferry or trained, certified practitioners when using the official guide charts.
Step 3: Score each factor independentlyThe committee scores each job across the three, or four, factors using the Korn Ferry Hay Guide Chart scales. Each part of each factor gets its own score.
Step 4: Calculate total Hay pointsFactor scores get weighted, then added up. The weighting differs by company. In most setups, accountability carries the most weight, followed by knowledge, then problem-solving.
Step 5: Group roles into gradesJobs within a set Hay point range go into the same grade. Each company sets its own grade bands. There is no single rule like "Hay grade 14 equals X points." The mapping is unique to each company.
Step 6: Calibrate against market dataInternal grade structures show where jobs sit compared to each other. Market pay data shows where salary ranges for each grade should sit compared to the outside market. Many companies use Korn Ferry's pay survey data to set salary bands within each grade.
Step 7: Communicate and maintainThe system needs regular upkeep. Roles change over time. A role that was a grade 10 individual contributor three years ago might now include team management and budget control, potentially changing its evaluation and grade. Regular reviews, usually every year or two, keep the structure current.
How to Calculate Hay Points: The Logic Explained
The official Korn Ferry Hay Guide Charts are owned and licensed, so the exact scoring tables are not public. Still, the basic logic works like this.
For each factor (Knowledge, Problem-Solving, Accountability):
- Score each part of the factor using the guide chart scales
- Add up the total factor score
Apply weighting:
- Accountability usually gets the highest weight
- Knowledge usually gets the second-highest weight
- Problem-solving usually gets the lowest weight, since it is shown as a percent of knowledge
Sum to total Hay points:
- Add the three weighted factor scores together
- That total is the job's Hay point score
Map to grade:
- The company's grade table turns point ranges into grades
- A job scoring 200 to 250 points might be grade 12 at one company. Another company might set grade 12 at 300 to 380 points, depending on its own structure
Getting Hay points right takes both the licensed guide charts and trained evaluators. New companies should bring in a Korn Ferry consultant to set things up, then train their own HR staff to keep the system running over time.
Hay System Example: Two Roles, Same Department
Here is how the evaluation logic plays out in real life.
Role A: Customer Support Executive
Knowledge: Product knowledge, communication skills, following set steps, basic system use.
Problem-Solving: Clear problems with known fixes, guidance and past examples available.
Accountability: Carries out set tasks, has limited decision power, impact is small-scale and customer-facing.
Role B: Customer Support Manager
Knowledge: All of the above, plus managing people, coaching, judgment on escalations, planning, and reporting on results.
Problem-Solving: Hard, unclear problems tied to team issues, gaps in policy, escalations with no playbook, and tough trade-offs.
Accountability: Owns team results, customer satisfaction outcomes, process design, and staffing decisions within the team.
The manager role scores higher on every factor. Not because the person matters more as a human being, but because the role asks more from whoever holds it. That difference in role complexity can support placing the manager role in a higher grade or salary band.
Benefits of the Hay System
1. Internal pay fairnessThe Hay System gives one shared way to compare roles across departments. It can reduce the influence of bias, negotiating skill, and individual manager opinion on pay decisions.
2. Defensible compensation structuresWhen employees ask why two roles get paid differently, the answer comes from clear, consistent criteria, not office politics. This matters a lot for companies facing pay equity checks.
3. Cross-functional job comparisonA VP of Engineering and a VP of Marketing can be scored on the same scale. Without a method like the Hay System, comparing jobs across departments comes down to gut feel.
4. Career progression clarityWhen grade structures are clear and visible, employees know what it takes to move from grade 10 to grade 12. This helps with career talks, succession planning, and goal setting.
5. Pay equity and compliance supportA structured evaluation, with clear criteria, creates a paper trail that supports pay equity audits. Companies can show that pay decisions rest on role needs, not traits that should never affect pay.
Limitations of the Hay System
1. It requires licensed accessThe official Hay Guide Charts belong to Korn Ferry. Formal, certified Hay evaluations typically involve working with Korn Ferry or a certified consultant. For smaller companies, this creates real cost and access barriers.
2. Implementation is resource-intensiveBuilding a Hay-based grade structure the right way takes trained evaluators, strong job descriptions for every role, and a committee with the time and knowledge to do the work well.
3. It measures the role, not the personThe Hay System shows what a role is worth, not how well the person in that role performs. Two people in the same grade, doing the same job at very different skill levels, still get the same grade.
This is really two separate problems, and they deserve separate names.
- Job evaluation answers: What does this role need?
- Performance management answers: How well is the person meeting those needs?
Both matter. Neither one replaces the other. A grade structure shows what "grade 12" is supposed to look like. It says nothing about whether the actual person in a grade 12 seat right now is meeting, beating, or missing that bar. That takes a separate system, one built for setting goals, gathering feedback, and reviewing performance over time.
4. It can lag behind fast-moving organizationsStartups and fast-growing teams often see roles change faster than review cycles can keep up. A system with yearly grade reviews may miss a role that picked up three new duties in six months.
5. Communication demands are highIf employees do not understand how grades get set, the system can breed resentment instead of trust. Clear, open communication about the method and criteria is key to making it work.
Hay System vs. Other Job Evaluation Methods
No single method wins every time. The Hay System works best when companies need strong internal fairness, the ability to compare across departments, and a clear paper trail, and when they have the size and budget to do it right.
Where the Hay System Ends, and Performance Management Begins
The Hay System answers a basic question: what is this role worth inside our company?
That is the right question for building consistent salary bands and supporting fairer internal pay. But it is the wrong question if what you really need to know is how someone is doing in the role right now.
Hay answers "what does this role need?" Performance management answers the broader question of how the person in this role is doing, growing, and improving over time, while performance appraisals and reviews provide the structured checkpoints for assessing that progress. These are two different problems that sit side by side in the employee's time at the company. Job evaluation builds the structure. Performance management works inside it.
How ThriveSparrow Supports What Comes After Job Evaluation
Once your company has set role grades and salary bands, whether through the Hay System or another method, the next challenge is helping employees perform, develop, and grow inside those grades. Job evaluation defines what a role requires, while performance management helps organizations understand how people are performing and developing within those roles.
Hay helps define the role. ThriveSparrow helps you manage the performance and growth of the person in it.
ThriveSparrow brings performance reviews, goal tracking, and 360° feedback into one connected system.
- Performance reviews help managers assess how employees are performing and developing against the expectations of their role.
- Goal tracking gives employees a clear view of what success looks like at their grade level, and ties personal goals to the business priorities that accountability, the third Hay factor, is meant to support.
- 360-degree feedback brings in views from the peers, direct reports, and stakeholders an employee works with, the relationship and leadership behaviors that can matter when employees are evaluated and developed within their roles.
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That's really the whole story with Hay: it's a solid, well-tested way to figure out what a role is worth, but it was never built to tell you how someone is actually doing in that role. For that, you need a different set of tools. If you're still working through the details, the FAQ below covers the specific questions people usually have about Hay points, grades, and Korn Ferry's role in all of it.
Frequently Asked Questions
1. What is the Hay System in HR?
The Hay System is a point-factor job evaluation method. It measures the value of different roles inside a company. It checks three main factors: knowledge needed (know-how), how hard the problems are, and how much the role affects business results. Together, these make a Hay point score. That score sets a role's Hay grade, which builds salary bands and pay structures. Edward N. Hay built the system, and Korn Ferry now owns and licenses it.
2. What is a Hay grade?
A Hay grade is the level given to a job based on its total Hay point score. Roles with close Hay point scores land in the same grade and salary band. Hay grades give the structure for a company's pay tiers, from entry-level roles up to top leadership. The grade describes the role, not the person in it.
3. What are Hay points?
Hay points are number scores made by checking a job against the Hay System's three main factors: knowledge (know-how), problem-solving, and accountability. Each factor gets scored on its own using the Korn Ferry Hay Guide Chart, then the scores get weighted and added up into the total Hay point score. Higher scores mean more complexity, more skill needed, and more effect on the business.
4. What is the relationship between the Hay System and Korn Ferry?
Edward N. Hay built the system through his firm, Hay Group. In 2015, Korn Ferry bought Hay Group, bringing the whole method, including the Hay Guide Chart, under the Korn Ferry name. Today, these terms are commonly used to refer to the Hay job evaluation methodology and its related Korn Ferry materials. Korn Ferry licenses the official tools, so companies typically work with Korn Ferry or a certified consultant to run a certified Hay evaluation.
5. How do you calculate Hay points?
Hay points come from scoring a job on knowledge, problem-solving, and accountability, using the Korn Ferry Hay Guide Chart scales. Each factor score gets weighted, then all the weighted scores get added up into the total. Since the official guide charts belong to Korn Ferry, companies running formal Hay evaluations work directly with Korn Ferry or a certified evaluator. The exact number scales are not public.
6. What is the difference between a Hay grade and a Hay level?
Both point to the same idea, the tier a job falls into after a Hay System evaluation. "Hay grade" is the more common term, and it usually means the pay band. "Hay level" gets used by some companies as another word for the same thing, or to point to the spot within the grade structure, like "Level 14." The wording differs by company, but both come from Hay point scores.
7. Does the Hay System measure employee performance?
No. The Hay System checks the job, not the person doing it. It shows what a role needs from whoever holds it, not how well the current person is doing. A strong performer in a grade 10 role and a weak performer in the same grade 10 role hold the same Hay grade. Performance needs its own tools, like reviews, feedback, and goal tracking.
8. What are the main criticisms of the Hay System?
The most common ones are: (1) the official guide charts need a Korn Ferry license, which costs money and limits access; (2) it takes real time from trained evaluators and HR teams; (3) it measures job complexity but misses the people side, culture, or motivation in a role; (4) grade structures can fall behind in fast-changing companies; and (5) it needs strong communication with employees, or it breeds resentment instead of trust.
