Job Leveling as the Foundation for Reward and Talent ...pwshrm.shrm.org/sites/pwshrm.shrm.org/files/Job Leveling as the... · Job Leveling as the Foundation for Delivering ... Workforce

Job Leveling as the Foundation for Delivering Integrated Reward and Talent Management Programs

Prince William SHRM

Theresa Lynch, Towers Watson

June 4, 2014

© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

towerswatson.com © 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

2

Introduction and Meeting Objectives

• Why this topic?• Session Objectives:

• Understand how the results of a job leveling process can serve as the foundation for talent and reward programs

• Understand the reward and talent management components necessary to communicate integrated programs to employees

• Identify opportunities within your organizations for integrating reward and talent management programs

Role of Job Leveling in Overall HR Framework

3


4

Career Frameworks Support a Range of Business Drivers

Sample Business Drivers

• Nimble change and growth strategy

• Attraction and retention of key talent/pivotal roles

• Rapid expansion

• Employee value proposition alignment

• Return on investment

• Cost management

• Unified talent development and deployment process

• Merger and acquisition integration

Career Framework

• Tied to business strategy and internal values

• Creates a common language across the organization

• Provides a basis for describing job requirements and performance expectations

• Facilitates the development and communication of career paths through the organization

• Links to external market surveys

• Provides consistent alignment of reward and talent management programs (e.g., workforce planning, succession planning)

• Facilitates integration of new organizations and other organizational structure changes


5

Business and Employee Value Proposition

Creates a consistent structure that supports your changing business and enables you to motivate and engage current and future talent

Supports your evolving organization

Sets the stage for development programs that clarify growth opportunities and provides a forum for better career conversations

Helps employees understandtheir career opportunities

Allows you to look at the organization and analyze your positions and functional areas in balance with overall objectives

Improves operational efficiency and analytical rigor

Creates a platform for discussing how job contribution and performance align with pay

Provides managers with toolsto link job contribution to rewards


6

Job Leveling Aligns Jobs in Order to Develop a Career Framework which Serves as a Foundation for a Number of Talent and Reward Programs and Applications

Talent and Rewards Programs and Applications

Pay Delivery Workforce Analytics and Staffing

Performance Management

Learning and Development

Career Developmentand Planning

Succession Management

Competencies

Inputs

Business Context Reward andTalent Strategy Job Content Employee Data Market Data

Job ArchitectureThe infrastructure for job organization

(job codes, job titles, functions, families, etc.)

Job LevelingA systematic process of determining the relative ranking of jobs in an organization

Career Framework


7

Pay Delivery Aligned with MarketIn

divi

dual

Con

trib

utor

Rol

eM

anag

emen

t Rol

e

Professional/Expert

Entry Intermed Career Specialist Master Expert

Business Support

Entry Intermed Senior Lead Supv

Management

Supv Mgr Sr Mgr Grp Mgr Sr Grp Mgr

Executive

VP SVP EVP CEO

Production

Entry Intermed Senior Lead

Indi

vidu

al C

ontr

ibut

or R

ole

Man

agem

ent R

ole

Professional/Expert


Professional/Expert


Business Support


Business Support

Entry Intermed Senior Lead SupvEntry Intermed Senior Lead Supv

Management


Management

Supv Mgr Sr Mgr Grp Mgr Sr Grp MgrSupv Mgr Sr Mgr Grp Mgr Sr Grp Mgr

Executive

VP SVP EVP CEO

Executive

VP SVP EVP CEO

Production


Production


Low High

10% 10% 10% 15% 20% 20% 25% 30% 40%

30% 35% 40% 50%

Salary Grade

STI Target

LTI Target

Spot Award Eligible

Annual Incentive Eligible

Long‐term Incentive Eligible

Job Level

ILLUSTRATIVE

towerswatson.com

8© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

Workforce Analytics and Staffing

Approximately 40% of Master level incumbents have less than five years service, showing organizational hiring of technical experts from outside the organization as opposed to promoting

from within

Too many “green” employees/External Hiring

Bottlenecks and Span of Control Issues

Ladder Level Head Count

Professional Entry 102

Intermed 145

Career 172

Specialist 220

Master 4

Expert 1

Ladder Level Head Count

Management Supv 92

Mgr 84

Sr Mgr 72

Group Mgr 61

Sr Group Mgr 20

Has the Specialist level become the “career” level?

Is the span of control

appropriate for an effective management

team?

Gender Gaps

F M

Concerns about progression for females, given declining representation by job level

ILLUSTRATIVE

towerswatson.com


Workforce Analytics and Staffing

Consistent messages about expectations and visible career opportunities enhance recruiters’ ability to attract strong candidates

Professional/Expert


Professional/Expert


Intermediate Role Profile

Career Framework DescriptorsFunctional/Job Family CompetenciesJob Specific Detail

Entry Level Role Profile


Career Role Profile


ILLUSTRATIVE

towerswatson.com


Performance Management Individu

al Con

tributor Role

Managem

ent R

ole

Professional/Expert


Business Support


Management


Executive

VP SVP EVP CEO

Production


The career framework creates a platform for consistent goals

Specialist Expectations

Diagnose and develop recommendations to solve unique functional or customer‐oriented problems

Lead complex technical or long‐term projects to implement new or modified systems, processes or products

Contribute subject‐matter expertise on one or more cross‐functional teams

Provide guidance and mentoring support for developing team members

Provides the framework to ensure consistent goal setting and calibration

for performance management

ILLUSTRATIVE

towerswatson.com


Learning and DevelopmentIndividu

al Con

tributor Role

Managem

ent R

ole

Professional/Expert


Business Support


Management


Executive

VP SVP EVP CEO

Production


Professional development and training can be tailored to the needs of specific

roles, career levels and functions, focusing spend on areas critical to

success

Supervisor

For example, the entry point for people and business management is at the supervisor level in the management band

All job holders in this role/level can be targeted for people management training

ILLUSTRATIVE

towerswatson.com


Career Development

• Career opportunities across functions, locations or across career bands to meet the company’s needs for talent and the personal aspirations of employees

Distinguish the individual contributor pathfrom the management path and required skills1

Professional/Expert

Management

1

Provide cross‐function opportunitiesto develop breadth of expertise2

Building Functional Experience

Risk HR Marketing

FinanceITOperations

2

Develop a deep technical path within a single function3 Create opportunities to cross borders to gain exposure to

varied cultures and markets

Professional/Expert


3

4

4

ILLUSTRATIVE

towerswatson.com


Succession ManagementIn

divi

dual

Con

trib

utor

Rol

eM

anag

emen

t Rol

e

Professional/Expert


Business Support


Management


Executive

VP SVP EVP CEO

Production


Indi

vidu

al C

ontr

ibut

or R

ole

Man

agem

ent R

ole

Professional/Expert


Professional/Expert


Business Support


Business Support

Entry Intermed Senior Lead SupvEntry Intermed Senior Lead Supv

Management


Management

Supv Mgr Sr Mgr Grp Mgr Sr Grp MgrSupv Mgr Sr Mgr Grp Mgr Sr Grp Mgr

Executive

VP SVP EVP CEO

Executive

VP SVP EVP CEO

Production


Production


Individual Development

Plans

Talent Reviewsand HiPo

Identification

Executive Development and

Reviews

Career Band and Job Level

Assignment and Replacement Planning

ILLUSTRATIVE

towerswatson.com


Job Documentation

Take career framework language by level and add to

role profile

Extract language from the career framework levels

Create role profiles

1. Career framework descriptors(role descriptors by career level)

2. Competencies(behavioral expectations described by level)

3. Job‐specific information, including job accountabilities and qualifications

Role Profile

The information from the framework might be used to create role profiles that serve as the job blueprint and inform the talent applications

Add competencies

Add job‐specific detail as needed

3

2

4

1

ILLUSTRATIVE

towerswatson.com


Rationalizing Job Levels and Titles Individu

al Con

tributor Role

The framework serves as a foundation for rationalizing jobs and titles

Professional/Expert


Accountant 1 Accountant 2 Sr. Accountant Staff Accountant XXXXXX XXXXXXX

Jr. Accountant Accountant 3 Accountant 3 Accounting Mgr XXXXXX XXXXXXX

Account Jr. Accountant Mgr. Accounting Accountant Mgr

Sr. Accounting Spec Acct

Jr. Accountant Accountant Sr. Accountant Sr. Staff Acct Spec

Before

Before

Before

Before

After

ILLUSTRATIVE

Building the Business Case

16

towerswatson.com


The Career Framework Helps Attract, Engage and Retain Talent by…

• Increasing transparency and objectivity • Provides a consistent platform to make pay and broader talent management decisions• Advances a credible and communicable career management structure• Draws a clear picture of career advancement for employees• Aligns with market data• Involves line managers more deeply in employee career management

• Adding sophistication and scalability • Recognizes multiple career paths• Remains flexible enough to support organizational change• Focuses on cultural neutrality and organizational applicability • Facilitates use of web‐based technology

towerswatson.com


Sample of Specific Project Objectives from a Client Organization Supported by a Career Framework…Area From… To…

Compensation Philosophy

No stated total rewards or compensation philosophy

Clearly articulated compensation philosophy that addresses different workforce segments

Job Titles Many job titles (900 of 1,400 titles are currently not used), some of which do not reflect actual work

A consistent job titling convention reflecting actual work or level of contribution

Job Content Job postings that are modified to reflect specific responsibilities

Broader/generic job descriptions that reflect job responsibilities and qualifications that take into consideration role and level

Job Structure No roadmap for growth opportunities Clearly defined growth opportunities

Total Compensation Lack of ability to view and employee’s total compensation and no transparency regarding incentive plan eligibility

More transparency, documentation and communication with automated tools to support the process

Market Data One off market data assessments Consistent practice for benchmarking jobs to external market data

Salary Structures A salary range per job Market competitive salary structure(s) that balance internal equity with external competitiveness

Pay Variation Little pay variation, based on performance, and inconsistency when setting hiring salaries

Pay variation aligned with differences in performance, skills and competencies

towerswatson.com


Employee Communication: Transparency Continuum

• Structure and number of levels

• Grade assignment of your job

• Pay opportunity for your job:• Salary range• Incentive

targets

• Nothing is communicated

• We have a structure and formal approach for managing compensation

• We have a structure with X levels

• Your job is assigned to level Y

• There is a formal range of pay established for your level

Black Box

Complete Transparency

Implications:

• Difficult to manage employee expectations regarding compensation

• No sense among employees of fair or consistent treatment

• Gives employee sense of fair treatment

• Remains difficult to manage expectations

• Employees understand structure and their own pay opportunity

• Improves perceptions of fair treatment

• Full disclosure should promote greatest sense of trust, fairness and consistency

• Requires training of managers to improve their ability to deliver communications

• Everything is known

• Structure and all ranges

• Grade assignments of all jobs

• Target incentives for all levels

• Compensation management policies

towerswatson.com


Key Building Blocks

Who from leadership is championing the change?

How will a career framework support the organization’s business objectives?

What is the ROI for the managers and shareholders?

How will an associate’s role change once a career framework is implemented?

What will the career framework levels look like?

How will career levels relate to pay and salary ranges?

How will one progress through the career levels?

Who will be involved in mapping jobs to the career levels?

How will this be administered and refreshed going forward?

Questions?

21

towerswatson.com


Contact Details

Theresa Lynch Consulting Director 901 N. Glebe Road, Arlington, VA, 22203 703‐258‐8216 [email protected]

Documents

Job Leveling as the Foundation for Reward and Talent ...pwshrm.shrm.org/sites/pwshrm.shrm.org/files/Job Leveling as the... · Job Leveling as the Foundation for Delivering ... Workforce