job leveling as the foundation for reward and talent...
TRANSCRIPT
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.
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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
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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
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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
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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
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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
Entry Intermed Career Specialist Master Expert
Professional/Expert
Entry Intermed Career Specialist Master Expert
Business Support
Entry Intermed Senior Lead Supv
Business Support
Entry Intermed Senior Lead SupvEntry Intermed Senior Lead Supv
Management
Supv Mgr Sr Mgr Grp Mgr Sr Grp Mgr
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
Entry Intermed Senior Lead
Production
Entry Intermed Senior Lead
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
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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
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Workforce Analytics and Staffing
Consistent messages about expectations and visible career opportunities enhance recruiters’ ability to attract strong candidates
Professional/Expert
Entry Intermed Career Specialist Master Expert
Professional/Expert
Entry Intermed Career Specialist Master Expert
Intermediate Role Profile
Career Framework DescriptorsFunctional/Job Family CompetenciesJob Specific Detail
Entry Level Role Profile
Career Framework DescriptorsFunctional/Job Family CompetenciesJob Specific Detail
Career Role Profile
Career Framework DescriptorsFunctional/Job Family CompetenciesJob Specific Detail
ILLUSTRATIVE
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Performance Management Individu
al Con
tributor Role
Managem
ent R
ole
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
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
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Learning and DevelopmentIndividu
al Con
tributor Role
Managem
ent R
ole
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
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
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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
Entry Intermed Career Specialist Master Expert
3
4
4
ILLUSTRATIVE
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Succession ManagementIn
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
Entry Intermed Career Specialist Master Expert
Professional/Expert
Entry Intermed Career Specialist Master Expert
Business Support
Entry Intermed Senior Lead Supv
Business Support
Entry Intermed Senior Lead SupvEntry Intermed Senior Lead Supv
Management
Supv Mgr Sr Mgr Grp Mgr Sr Grp Mgr
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
Entry Intermed Senior Lead
Production
Entry Intermed Senior Lead
Individual Development
Plans
Talent Reviewsand HiPo
Identification
Executive Development and
Reviews
Career Band and Job Level
Assignment and Replacement Planning
ILLUSTRATIVE
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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
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Rationalizing Job Levels and Titles Individu
al Con
tributor Role
The framework serves as a foundation for rationalizing jobs and titles
Professional/Expert
Entry Intermed Career Specialist Master 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
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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
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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
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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
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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?
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Contact Details
Theresa Lynch Consulting Director 901 N. Glebe Road, Arlington, VA, 22203 703‐258‐8216 [email protected]