job levelling summit 2013 - willis towers watson of broadbanding and competencies aided by the...

© 2013 Towers Watson. All rights reserved.

2013 EMEA Job Levelling webinar

The stakes get higher: using next generation approaches for job

architecture and job levelling to balance employer and employee priorities

8 October 2013

Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

EMEA Practice Leader, Change Management

Towers Watson Phil Merrell

Today’s speakers

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2

EMEA Practice Leader, Rewards

Towers Watson Carole Hathaway

Corporate HR - Global Solutions & Exempt

Compensation

Merck KGaA Annika Niehaus



Topic Speaker

Current trends in job levelling and job architecture Carole Hathaway

Towers Watson

Case study: The Global Job Catalog @ Merck Annika Niehaus

Merck KGaA

Success factors for effective design and delivery

Carole Hathaway,

Phil Merrell

Towers Watson

Questions and Answers

What we will cover today

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3


Job Levelling 2013

Current trends in job levelling and job architecture

Carole Hathaway, Towers Watson


Market Trends - the evolution of Job Levelling and

Architecture

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The concept of job

evaluation was

born with the

original prototypes

emerging in 1871

through Ulysses

S. Grant’s Civil

Service

Commission. The

aim of these

attempts of job

evaluation was to

rationalise

personnel policy

1880s 1920s 1960s 1990s Today/Tomorrow

Leading

organisations move

towards integrated

reward and talent

management

Focus is on Job

Architecture as an

enabler for career

management,

strategic workforce

planning etc.

Investment in

technology to drive

efficiency and

effectiveness

More focus on

market pay

particularly for ‘hot

skills’ e.g. IT (Y2K)

Internal equity still

important but

companies begin

to reduce the

number of levels

in their structures

and move from

points to grades

Introduction of

broadbanding and

competencies

Aided by the

unions, the

ideology of equal

pay for equal work

gathered

momentum in the

1960s and led to

the introduction of

the Equal Pay Act

of 1963 (US) and

1970 (UK)

Organisations

began to focus on

pay structures and

broader reward

programmes

Points and factor

comparisons were

incorporated into

job evaluations to

form the first

modern systems

5


Today/Tomorrow: A Fundamental Building Block for Effective

Reward and Talent Management

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Supporting the Employee Life Cycle

Workforce Analytics

& Planning Staffing & Selection

Development and

Career

Management

Performance

Management

Compensation &

Benefits

Succession

Management

Competency Model

Inputs

Business Context Reward and

Talent Strategy Job Content Employee Data Market Data

Job Architecture The infrastructure for organising jobs

(job codes, job titles, functions, disciplines)

Job Levelling

A systematic process of determining the

relative value of jobs in the organisation

Reward and Career Architecture

DRAFT

6


The Business and Employee Value Proposition

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Creates a consistent global structure that supports

your changing business and enables you to deploy,

motivate and engage current and future talent

Supports your global,

evolving organisation

Sets the stage for development programmes that clarify

growth opportunities and provides a forum for better

career conversations

Helps employees understand

their career opportunities

Allows you to look globally at the organisation and

analyse your positions and markets in balance with

local needs, supported by HRIS technology

Improves operational efficiency

and analytical rigor

Creates a platform for discussing how job contribution

and performance align with pay

Provides managers with tools

to link job contribution to rewards


Job Levelling

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1. Yes, for all jobs

2. Yes, for some jobs

Does your organisation currently use Job Levelling ?

3. No, but we are looking to introduce something

4. No, and we are not currently looking to introduce

something

1. Pay structure

62.2%

2. Career pathing

24.3%

3. Succession planning

16.2%

4. Benefits eligibility

43.2%

5. Competency framework

18.9%

6. LTIP eligibility

27.0%

7. Bonus eligibility

40.5%

8. Job titling

43.2%

9. Workforce analytics and planning

13.5%

43%

39%

18%

Vote for up to 9 choices

(% = Percentage of Voters)

Source: ‘Live’ voting at TW Job Levelling Summit February 2013

What is currently linked to your Job Levelling?

0%


Job Architecture

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1. Yes, for all jobs

2. Yes, for some jobs

Does your organisation currently use Job Architecture

3. No, but we are looking to introduce something

4. No, and we are not currently looking to introduce

something

1. Pay structure

67.6%

2. Career pathing

35.3%

3. Succession planning

11.8%

4. Benefits eligibility

20.6%

5. Competency framework

17.6%

6. LTIP eligibility

20.6%

7. Bonus eligibility

29.4%

8. Job titling

35.3%

9. Workforce analytics and planning

17.6%

33.3%

34.1%

30.2%



What is currently linked to your Job Architecture?

2.3%



Methodology

1. Factor based (based on analysis of factors that are then scored and allocated points e.g. Global Grading System

75%

2. Career based (classification in style but descriptors vary by career grouping e.g .Career Map)

11%

3. Other

14%

What is the primary type of Job Levelling methodology used in your organisation? Select one



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Global Grading System (GGS)

BUSINESS STRATEGY 5BS

GRADE

BAND

TASKS 1

SKILLS 2

LEADERSHIP 4M

EXPERTISE 3M

MA

NA

GE

ME

NT

CA

RE

ER

PA

TH

'ROLE' CONTRIBUTES (THROUGH)

CE

O

2 3IC 1 4IC

SUPERVISOR

PROFESSIONAL

CLERICAL / ADMINISTRATIVE

MANUAL

FUNCTIONAL STRATEGY 5FS

SUBJECT MATTER EXPERT

MIDDLE MANAGEMENT

TOP MANAGEMENT

1 2 3 4 5 6 7 8 9 10 11 12 16 18 20 21 22 23 24 19 25 13 14 15 17

1 2 3 4 5 6 7 8 9 10 11 12 16 18 20 21 22 23 24 19 25 13 14 15 17

1st LINE TOP MANAGEMENT

IND

IVID

UA

L C

ON

TR

IBU

TO

R

CA

RE

ER

PA

TH


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Global Grading System (GGS) Three basic steps and the position is graded


Scoping the Business

Scope data:

Revenue

Number of employees

Geographic breadth

Diversity/complexity of

products and services

Banding a Job

Two to five questions:

Dual career ladder

Management

Individual Contributor

Grading a Job

Seven factors:

Functional knowledge

Business expertise

Leadership

Problem solving

Nature of impact

Area of impact

Interpersonal skills

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Career Map - provides a methodology to map jobs into a set of 5

established career bands and levels…

13


Indiv

idual C

ontr

ibuto

r C

are

er

Path

M

anagem

ent C

are

er

Path

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 bands, levels and terminology can be customised

towerswatson.com


The levelling criteria reflect the way managers and employees

think about work

14

And Career Map and the

Global Grading System

are fully integrated

enabling a robust

evaluation methodology

in the background and

an effective front end

communication tool


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Approach and detail

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1. It is an HR tool only and not communicated to employees

2. It is openly communicated to all employees

How would you describe your approach to communicating your Job Levelling framework? Select one

62%

38%


1. Precise points

2. Level/band/grade without descriptors

3. Level/band/grade with descriptors

4. Level/band/grade with descriptors defined by job family/career group

What level of detail is communicated? Select one

4%

58%

19%

19%


Bringing it to life

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What changes would you make to your Job Levelling system?

Select top three

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1. I would not make any changes

1.4%

2. Make it more career orientated

17.8%

3. Make it more transparent to managers and/or employees

43.8%

4. Make it more of a foundation for reward programmes

38.4%

5. Make it more of a foundation for talent programmes

45.2%

6. Make it more simple

26.0%

7. Move to a points based method

5.5%

8. Move to a classification/career based method

19.2%

9. Make it more accessible to employees by overlaying clear descriptors

30.1%






Case study: Merck KGaA

Annika Niehaus, Head of Exempt Compensation and Global Solutions

The Global Job Catalog @ Merck – Introducing a Global Job Catalog to make job levelling more efficient

TW Job Levelling Webinar, October 2013

Merck KGaA - Annika Niehaus

Content

The GJC@Merck - TW Job Levelling Webinar | October 2013 20

4 The Global Job Catalogs (GJC) structure

2 The trigger: Background to our initiative

5 Implementation: Job levelling via mapping to the GJC

3 How we started: Applications, set up and design approach

1 The company: History and organisation

6 Outlook

2 Milestones in the history of Merck

1668

Friedrich Jacob Merck (1621-1678)

buys the Angel Pharmacy (Engel-Apotheke)

1827

Emanuel Merck (1794-1855) starts

production on an industrial scale


Merck is the oldest pharmaceutical and chemical company in the world

Merck is a leading pharmaceutical, chemical and life science

company that conducts its operations in four divisions:

– Merck Serono: Prescription medicines of both chemical and biological origin in specialist indications

– Consumer Health: Over-the-counter pharmaceuticals for preventive health care and self-treatment of minor ailments

– Performance Materials: High-tech performance chemicals for applications in fields such as consumer electronics, lighting, coatings, printing, plastics, and cosmetics

– Merck Millipore: Products and services for the life science industry, used in research and analytical laboratories as well as in pharmaceutical manufacturing

Approximately 39,000 employees in 66 countries

Merck manages its operating activities under the umbrella of Merck KGaA, which was listed on the Frankfurt Stock Exchange in1995 and admitted to the DAX® in 2007

Around 30% of the total capital is publicly traded, while the Merck family, as general partner, indirectly holds around 70%

Merck at a glance


Pützer Tower and Pyramid

at Darmstadt headquarters

www.merckgroup.com

Merck Group sites worldwide

A presence at 158 locations in 66 countries


Content







6 Outlook

Business needs have been the starting point for the Global Job Catalog …

Accelerating changes and flexible organisations demand the delivery

of according global HR systems that additionally provide a stable and

reliable foundation – a task not easy to fulfil.

A holistic approach based on a single solid foundation to be used

globally was needed - quick!

Pressure to deliver a more effective and efficient approach for GG was

high, additionally the GG was not perceived as a pure job levelling.


Global Job Catalog (GJC)

As fundamental „building block“ for effective HR programmes.

HRs deliverable to meet business challenges.

Focuses the business on the job content – not on the GG.

… and the source of the requirements we expect from it

26

From the development of one consistent and aligned Global Job

Catalog we expect ...

to receive a stable foundation for

standardised,

simple,

efficient,

integrated and consistently

applied global people processes that correspond to business

needs

support in flexibility in times of rapid organisational changes

an increase in consistency, clarity and transparency – not only for

the job levelling

easier creation and grading of new roles

The GJC@Merck - TW Job Levelling Webinar | October 2013

Content







6 Outlook

A definition of all applications to be linked to the Global Job Catalog was necessary …


Learning* deliver job and role based information for training purposes

Global Grading comprise all non-executive catalog jobs - already analytically graded

Reporting allow standardised collection, analysis and reporting of job-based information

Salary

Benchmarking provide information for standardised matching of the catalog jobs to all

relevant salary surveys globally

Workforce

Planning* ensure globally consistent data to conduct strategic workforce planning

Recruiting* provide pre-defined role content adaptable for recruiting purposes

Talent &

Succession Mgmt.* provide the structure for career pathing and development

Performance

Management* build the basis for setting objectives (‘what?’) and competency requirements

(‘how?’)

* The GJC currently provides a generic basis for these applications, further customisation of the role profiles may be necessary.

The Merck Global Job Catalog should ….

Sh

ort

-te

rm

Lo

ng

-te

rm

… and the design criteria had to fit for all of them!

29

Globally applicable

Skill-based instead of organisational structure based

Organised into functional areas, job families, job types and

jobs

Provides key, generic job information on a job’s purpose,

accountabilities, requirements and impact

In line with existing SAP requirements

Grade profiles which reflect generic job type (service,

expert, supervisor, manager) and level (Global Grade)

The GJC@Merck - TW Job Levelling Webinar | October 2013

The result is our Global Job Catalog!


The Merck Global Job Catalog (GJC) …

A lean, standardised collection of generic job descriptions for all non-

executive jobs

Skill-based and organised into functional areas, job families, job types and

jobs

Generic level content reflects job type (service, expert, supervisor, manager)

and level (Global Grade)

...is

what?

As a first step on a longer journey

Short-term: Alignment in role development as well as base for simplified

grading

Longer-term: Base layer for various HR activities including workforce

planning discussions and other HR processes (benchmarking, compensation

planning, development, succession planning etc.)

...is used

how?

It will unfortunately not solve all HR issues at Merck

It will only aid consistency through correct application

It won’t provide 100%-job specific/tailored job descriptions

...will

not?

Content







6 Outlook

Terminology and layers of the Global Job Catalog

The Merck Global Job Catalog (GJC) is organised in three layers.

Each position is mapped to a GJC job.


i

Field/Direct

Sales

Expert 2

GG 9

Field Sales Exp. II #01









All Sales Reps. worldwide with

comparable requirements,

tasks and skills are mapped to

job “Field Sales – Direct Sales

Exp. 2” within the job family

“Field/Direct Sales” on a

certain grade.

Sales

Channel Sales Field/Direct

Sales

1. (Functional) Area A group of job families which belong to a

similar field of activity, performing related

work, sharing a common professional

development and career structure.

2. Job Family A group of jobs which reflect a natural career

path using similar capabilities and skill sets.

3. Job (Label) A group of positions in the same grade

clustered into four job types (service, expert,

supervisor, manager) with a similar purpose,

accountabilities, scope, skills and capabilities.

Position Each employee has one permanent

position.

Person Each employee within Merck.

Glo

ba

l J

ob

Ca

talo

g

A job family consists of various job profiles


Sales Job Type GG Jobs in Job Family “Field Sales-

Direct Sales” in Area “Sales”

• General Sales

• Account -

Customer

Management

• Channel Sales

• Field Sales -

Direct Sales

• Medical Sales

Force

• Sales

Administration -

Internal Sales -

Customer Service

• Sales Force

Effectiveness

• Sales Planning

• Technical Sales

Support

• Service Career

• Expert Career

• Supervisor

Career

• Management

Career

8

9

10

11

12

13

14

11

12

12

13

14

• Field Sales - Direct Sales - Expert 1







• Field Sales - Direct Sales - Supervisor 3

• Field Sales - Direct Sales - Supervisor 4

• Field Sales - Direct Sales - Manager 1



Jo

b F

am

ilie

s in

Are

a „

Sale

s“

Are

a

The job types define the layer structure of the GJC …


Focus of the job?

Focus on achieving results

through individual contribution

TECHNICAL

Nature of the individual contribution?

SERVICE Performs standard/ routine/ transactional tasks within

an operations, technical or business support team

based on knowledge acquired through practical

experience and/ or formal qualification. Works within

clearly defined processes, guidelines or standard

operating procedures and is assessed on accuracy,

timeliness, quality and compliance.

EXPERT Contributes to developing optimum solutions to

business demands with substantial independence

based on knowledge acquired through graduate

education (or equivalent) and professional experience.

Is assessed on the achievement of individual

objectives and the commercial/ innovative/ intellectual

quality of own contributions.

Focus on achieving results

through others

Nature of the individual contribution?

SUPERVISOR Leads a sizeable and often homogeneous technical,

operations or business support team (8+ employees)

consisting of various service jobs (see left for definition

of ‚Service‘) in performing standardised, routine,

transactional tasks ensuring accuracy, timeliness,

quality and compliance.

MANAGER Leads a team of Experts (see left for definition of

‚Experts‘) with the majority of jobs being graded GG

10+ or through managers/ supervisors. The unit

delivers non-standard services by independently

applying acquired expertise ensuring that optimum/

innovative solutions to business demands are

developed.

MANAGERIAL

Str

ate

gic

Ma

na

ge

me

nt

Glo

ba

l J

ob

Ca

talo

g

An

aly

tic

al

Gra

din

g

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Se

rvic

e

Su

pe

rvis

or

17

18

19

20

21

22

23

Ma

na

ger

… and are linked to Global Grades

Jobs are clustered into job types that capture the

nature of the contribution: service, expert,

supervisor, manager

Job types and Grade ranges for the job types are

the same across all job families


Ex

pe

rt

Each job profile gives information about the

job type (service, expert, supervisor, manager)

and the job level (using Global Grades)

Manager jobs with operational focus reporting to senior

management that contribute to the organisation

through leveraging the work of professionals and/ or

managers

Supervisory jobs on shop floor level and junior manager jobs

where responsibility for service and/ or technical staff represents

a large proportion of the job

Skilled craftsmen/ technicians

Basic computing/ data- processing jobs, operators, warehouse staff

Clerical, administrative and secretarial jobs

Individual contributor jobs with specific technical expertise and

independence in applying and/or driving that expertise

Content







6 Outlook

The implementation of the Global Job Catalog meant mapping positions to GJC jobs

The purpose of the mapping exercise was to match all Merck´s

positions worldwide below GG 16 to a GJC´s generic job

The mapping had to be done in such a way, that the job reflects the

actual task (full usage of differentiation possibilities)

The mapping process followed the GJC structure:


3. Selection of the appropriate job type (service, expert, supervisor, manager)

4. Selection of the appropriate level description (job profile)

Relevant Catalog Job

Mapping of individual positions to the catalog jobs

1. Selection of the relevant Functional Area

2. Selection of the most relevant Job Family within the Functional Area

Content







6 Outlook

Outlook / future issues

Phase 1 – Review

First of all it is important to focus on the review and on amendments

considering the feedback received during the mapping process.

Phase 2 – GJC Application beyond Global Grading and Benchmarking

Phase 2 will focus on further specific requirements for other HR

processes and programmes as well as the development of linkages to

other key HR programmes

Position based rewards programmes will be developed, too and the

GG 16+ positions will also be linked to the GJC (while maintaining the

analytical grading for these positions).


..and thank you for your

attention!

40 The GJC@Merck - TW Job Levelling Webinar | October 2013

Your contact @ Merck

Annika Niehaus, Total Rewards - Global Solutions and

Exempt Compensation & Benefits Germany

[email protected]



Success factors for effective design and delivery


Carole Hathaway, Phil Merrell Towers Watson


Getting design and delivery right

Critical inputs

Executive Buy-in and

Sponsorship

HR and Business

Partnership in Solution

Clear Roles and

Responsibilities

Active Change

Management

Effective Implementation

Critical inputs

Clear Framework Design

Link to Business Strategy

and HR

Link to Competitive Market

Robust Job Leveling and

job architecture

Methodology

Technology Platform

A successful framework will result from both technical design

inputs and effective change management

Outcomes

Managing Talent Effectively

Across the business

Build Foundation for

Career Development

Attract and Retain Talent

Create Desired Behaviours

Provide Platform for

Rewards

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Best practice change management

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Building a comprehensive strategy and detailed

implementation plan includes these steps

Determine goals and guiding principles Objectives

Segment and define the needs (knowledge, actions) of all stakeholders Audience Analysis

Establish clear roles and responsibilities and a governance process for

developing, approving and delivering activities, training & communications Stakeholder Roles

Develop an overarching message platform and targeted messages by

stakeholder group Key Messages

Identify the media and activities that will be used at various touch-points with

target audiences Media/Activities

Build a comprehensive plan that’s integrated with other initiatives and can be

sustained over time Timing

Establish success criteria, methods and plan for assessment Success Measures

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Sources of risk to change projects typically include

Capacity (not enough)

Capability (skill gap)

Technology (not fit for purpose)

Employee relations (works councils/unions)

Leadership (lack of advocacy)

Vested interests (resistance)

Regulatory environment (changes, limits)

Talent (loss, disengagement)

Alignment (processes not supporting)

46

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Risks - Learnings from Other Organisations

What are the most challenging issues

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1. Mapping employees to the framework

29.2%

2. Line Manager capability

38.7%

3. Getting buy-in from key business stakeholders

39.6%

4. Managing all the data

17.9%

5. Job titling

18.9%

6. Maintaining the framework/on-going governance

37.7%

7. Managing Works Councils and unions

15.1%

8. Helping employees to ‘get it’ and use it

29.2%

9. Portals, technology, accessibility of tools

17.0%


Source: Pulse Survey at EMEA Job Levelling Summit February 2013


What does successful implementation look like?

• All key stakeholders are informed about the implementation plan and

feel they have had sufficient opportunities to provide input

• Line Managers are ready to help their teams through the change

• HR are trained to answer any questions and support line managers

• Required (works councils/union) consultations are properly managed

• Employees understand the benefits and what the impact on them is

• Good practices are ingrained into BAU processes and decision

making at all levels

Technology platforms are tested and working



Enabling success through technology

Talent|REWARD

Talent|REWARD is Towers Watson’s technology platform for

automating a number of compensation and talent management

processes


49


Our research show that Job Levelling and Architecture…

Facilitates effective Performance Management

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How effective is your organisation's performance

management process in the following areas?

Companies having implemented

Job Architecture and Job Levelling Companies having only Job

Levelling implemented Neither


Our research shows that Job Levelling and Architecture...

Helps Managers be more effective

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How effective are the managers in your organisation in the following

aspects of performance management?

Neither Companies having implemented

Job Architecture and Job Levelling Companies having only Job

Levelling implemented

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job levelling summit 2013 - willis towers watson of broadbanding and competencies aided by the...

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