History of Compensation: the Father of Human Resources

Blog Post created by cdooley Advocate on Sep 1, 2016

Compensation Data Facts - What's What in Compensation




History of compensation... Credited as the most influential person in the human resources profession, Edward N. Hay laid the foundation for 20th-century compensation management and pioneered many of today's people management practices.


Hay acknowledged the need for a consistent salary-administration system to facilitate job evaluation, ranking, and pricing. Based on the premise that maximizing a companies people management skills would vastly improve their quality of work, he formed management consulting firm, the Hay Group, in 1943.


In 1951, an employee named Dale Purves invented the “Hay Guide Charts”, the world's most used job evaluation methodology. Comprised of four standard factors: Know-How, Problem Solving, Accountability and Working Conditions, these charts were revolutionary in allowing organizations to define and compare jobs within the company’s business units. The guide charts that bore his name would become the world's single most widely used job evaluation technique.