One of the most common challenges HR leaders face is to make sure there is a systematic way to compare the value of work across their organizations. Human resources and compensation leaders need to evaluate the nature of work done by each job, the technical and behavioral skills needed to perform the tasks, and assessing the impact each job brings to business outcomes.
Job evaluation can be challenging for any organization, but it is especially so for companies that have diverse operations across different sectors and/or operate across multiple countries, the entire region, or even on a more global stage. When needing to evaluate work across industries or geographic boundaries, many other factors start to creep into the process.
In our experience, whilst many organizations in-region do have job architecture in place, it is often ignored, used inconsistently, or administration becomes complex as M&A activity leaves large organizations with multiple frameworks to manage.
However, based on the amount of activity and interest we see from clients and prospects, there is a hunger to know more about the rationale and benefits for having a well-understood and well-managed job-leveling framework—whether that be first-time implementation or revamping/replacing the existing system.
Here are the top 4 reasons to develop a job-leveling framework for your organization:
1. Consistency across HR programs
Using a standard job evaluation methodology allows you to talk about job structure using consistent terminology. It is this consistency that allows managers and employees alike to understand communications and decisions about job leveling more easily and comprehensively. At Aon, we use our proprietary job evaluation methodology, called JobLink™. This method for job evaluation uses a systematic approach to determining relative positioning of different jobs, using this set of factors:
Once we evaluate jobs using JobLink, we are able to assign jobs into our standardized job hierarchy.
Job analysis and evaluation serves as the core for other HR programs. When organizations are able to align their jobs into a job-leveling framework, it facilitates standardization and consistency across other HR programs. Leaders are also able to observe their talent pool and make talent decisions in a holistic and consistent way.
2. Career pathing
Career opportunities and the supporting infrastructure are two of the top priorities for organizations to improve engagement, and providing a meaningful career path falls under this expectation employees have of their employers. A job-leveling framework can serve as the infrastructure to provide a way for employees to see the jobs they can aspire to as they navigate their careers.
Career pathing is not only helpful to employees, but also to leadership—especially as organizations move to increase the amount of mobility (both across teams, departments, subsidiaries and borders) they have. By having a job-leveling framework, HR leaders are able to do more effective workforce planning.
3. Ease of administration
Human resource organizations are continually finding more efficient ways to administer their HR programs. Having a job-leveling architecture can be the cornerstone for building greater efficiencies, and streamlining other decisions regarding employees and jobs. Here some examples:
Pay grades and salary structures
Job titling standardization
Short-term incentive eligibility and target setting
Long-term incentive eligibility and award determinations
4. Flexibility for business transaction
More and more commonly, we see organizations address their job-leveling framework as part of their post-transaction tasks following an acquisition. However, a lesser-known advantage to having a job-leveling framework is in getting your organization ready for a corporate transaction even before it happens. This helps to minimize adverse impact when determining the critical roles and critical employees post-transaction.
Want more information on job architectures?
Implementing a job architecture can be a daunting task, but organizations have been pressing to complete implementations at a faster pace. The key to being able to complete such an undertaking is having the right data and expertise at your disposal. Please contact us to learn how our data or consulting services can help you.