Job Evaluation Based on Hay Method for Developing the Compensation System for The Internal Audit Function in A Transforming Oil and Gas Company

Abstract

This research focuses on evaluating the remuneration system within an oil and gas organization, with a specific emphasis on the Internal Audit department undergoing a transformation into a pooled resource organization. This transformation has led to a matrix- based division of work, involving all team members in various projects and necessitating a thorough evaluation of each position. To conduct the evaluation, the Hay Method is employed, using specific criteria such as Know-How, Problem Solving, and Accountability, with the support of the Analytical Hierarchy Process (AHP) approach. The outcome of this evaluation will serve as the foundation for designing an effective remuneration system. The study will identify the key Hay Method criteria, crucial for position evaluation and subsequently rank them using a point system for positions within the Internal Audit Function.