THE SCIENCE OF STRUCTURE - Mercer...methodology and job evaluation practices around the world. David...

H E A L T H W E A L T H C A R E E R

T H E S C I E N C EO F S T R U C T U R E

Steve GuyerDavid Wreford

8 November 2016

© MERCER 2015 1

T O D AY ’ S S P E A K E R S

Steve Guyer David Wreford

Steve is the Global SolutionLeader for Job Evaluationlocated in Atlanta, Georgia.

He leads activities associatedwith Mercer’s InternationalPosition Evaluation (IPE)methodology and job evaluationpractices around the world.

David is the European practiceleader for workforce rewards,based in London.

Most of the time he is helpingclients build levelling frameworksas a foundation for their rewardand talent programmes.

© MERCER 2015 2

T O D AY ’ S T O P I C S

T H E C H A N G I N G N A T U R E O F W O R K

J O B E V A L U A T I O N

C H A L L E N G E S

C A L L T O A C T I O N

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T H E C H A N G I N G N A T U R E O F W O R KM A R K E T I N F L U E N C E S

D I S R U P T I V ET E C H N O L O G Y

W O R L DS O U R C I N G

A U T O M A T I O N &M A C H I N E

L E A R N I N G

B I G D A T AM A N A G E M E N T

M U L T I -G E N E R A T I O N A L

W O R K F O R C E

R I S E O F T H EF R E E A G E N T

C O M P E T I T I O NF R O M E M E R G I N G

M A R K E T S

T A L E N TS C A R C I T Y

L E V E R A G I N GA D I V E R S E

L A B O U R P O O L

F L E X I B L EW O R K I N G

Source: Mercer 2016 Global Talent Trends report

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T H E C H A N G I N G N A T U R E O F W O R KM A R K E T R E A L I T I E S

M A R K E TP E R S P E C T I V E

In a rapidly evolving employment landscape, the ability to anticipate andprepare for future skills requirements, job content and the aggregateeffect on employment is increasingly critical for businesses, governmentsand individuals to fully seize the opportunities presented by these trends andto mitigate undesirable outcomes.

– 2016 World Economic Forum The Future of Jobs Report

O R G A N I Z A T I O NP E R S P E C T I V E

Need for increased agility to attract, nurture and retain talent has neverbeen more critical. Emerging trends are re-shaping the way we think about theworkforce and its contribution to organization performance. These trendsinclude contingent workers, increased desire for flexible working arrangements,personalization of rewards, and the individualized value proposition.

– Why is Job Evaluation Even More Critical in a Talent-Demand Economy?

E M P L O Y E EP E R S P E C T I V E

In this Era of the Individual, employees have more options about where, whenand how they work than ever before. They are demanding a new valueproposition that provides greater career support, combined with newflexibility in managing their work and building their skills.

– Mercer 2016 Global Talent Trends report

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T H E C H A N G I N G N A T U R E O F W O R KJ O B C O N T E N T

T E C H N O L O G I C A LA D V A N C E M E N T S

N O N - T R A D I T I O N A LR E S P O N S I B I L I T I E S

S T R A T E G I CR E O R G A N I Z A T I O N

F U T U R E J O B S

Keys to managing evolving job content:

• Understanding job responsibilities

• Consistent methodology

• Simplified tools and processes

• Responsibility-based evaluation approach

• Workforce analytics to forecast futuretalent needs

© MERCER 2016 6

Strategic review/analyticsQuestion: How much flexibility is desirable?

Job flexibility analysisQuestion: How much flexibility is possible?

Job sizeQuestion: How does job size

affect flexibility?

Market analysisQuestion: How much

flexibility is normal andwhat’s their ROI?

Employee requestsQuestion: How much flexibility can I have?

Reward impactsQuestion: How will this affect employee rewards?

AnalyticsQuestion: What’s our ROI?

Job designQuestion: What does flexibility look like for this job?

GovernanceQuestion: How much flexibility is agreed?

Design

Managem

entT H E C H A N G I N G N A T U R E O F W O R KF L E X I B I L I T Y – A N A P P R O A C H

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F r o m t r a d i t i o n a l v e r t i c a lc a r e e r l a d d e r s o f f e r e db y t h e o r g a n i z a t i o n …

… To n o n - l i n e a rc a r e e r “ c l i m b i n g w a l l s ”p r o a c t i v e l y m a n a g e db y t h e i n d i v i d u a l

Where does structure fit with the shift in thinking…

T H E C H A N G I N G N A T U R E O F W O R KA S H I F T I N T H I N K I N G

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Organizations lay out the climbing wall while employees seek out the experiences that enablethem to progress their careers via routes that suit them and meet business needs.

Key actions:

• Articulating the overall careerphilosophy

• Providing online resources foremployees to better define their careeraspirations and develop / implement /own a career plan

• Upskilling managers to supportemployees in implementing a careerplan through effective careerconversations

T H E C H A N G I N G N A T U R E O F W O R KC A R E E R S A N D S T R U C T U R E

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T H E C H A N G I N G N A T U R E O F W O R KT A L E N T G L O B A L I Z A T I O N

GLOBALIZE - to develop,or be developed, so as tomake possible internationalinfluence or operation

Working across borders andmanaging employees in multiplegeographies is a businessreality. Hiring and moving talentbetween businesses andlocations is a critical driver ofgrowth. However, establishingtalent management practiceswith a global perspective is notalways easy.

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T H E C H A N G I N G N A T U R E O F W O R KT H E S C I E N C E O F S T R U C T U R E

E M P L O Y E E D E M A N D S

M A R K E T D E M A N D S

Job changes throughtechnological advancementsand strategic reorganization

Increased attention on theindividual value proposition and therequest for workplace flexibility

Greater career support andskill building opportunities

A need for globalconsistency andsimplicity of application

A scientific approach to job structure is required toaddress modern market and employee demands

Developing and maintaining a solidfoundation enables organizationsto quickly evaluate new jobs,assess and implement relevanttalent and HR programs.

Job evaluation is essential indeveloping this solid foundation.

© MERCER 2016 11

T O P I C S



C H A L L E N G E S


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J O B E V A L U A T I O NI N T R O D U C I N G J O B E V A L U A T I O N

W H A T A R E S O M E O FT H E C H A L L E N G E S T OI N T R O D U C I N G J O B E V A L U A T I O N ?

S A L A R YB E N C H M A R K I N G

In our recent global job evaluation ROIsurvey we found that the top 3 areas for jobevaluation value-add are:

O R G A N I Z A T I O N A LA L I G N M E N T

I N T E R N A LC O M P A R A B I L I T YO F J O B S

Perception that job evaluation isold thinking!How do you introduce theconcept into an organization thathasn’t used job evaluationbefore?

!

!For those that use a job evaluationmethodology, how do you refresh andexpand the use of it?

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J O B E V A L U A T I O NQ U E S T I O N S F O R C O N S I D E R AT I O N

1. If you use a jobevaluation methodology,what is its main purpose?

2. If you don’t currentlyuse a job evaluationmethodology, is there areason?

3. Do you see the areasfor value-add changing inthe future?

C O N S I D E R T H EF O L L O W I N GQ U E S T I O N SW I T H I N Y O U RO R G A N I Z A T I O N :

© MERCER 2016 14

For most companies. Ittook one to three years

to realize an ROI.

53% of companies savedmoney on the grading

process

42% of companies saved timeon grading requirements

J O B E V A L U A T I O NB E N E F I T S O F J O B E V A L U A T I O N

T I M E S A V I N G S C O S T S A V I N G S T I M E A N D R O I

A F T E R I M P L E M E N T I N G J O B E V A L U A T I O N :

Source: 2016 Global Job Evaluation Return on Investment Snapshot Survey

© MERCER 2016 15

J O B E V A L U A T I O NC O M P A N I E S A C H I E V I N G R O I

54%

N O R T HA M E R I C A

YES

54%

L A T I NA M E R I C A

YES

E U R O P E

63%YES

A S I A ,M E ,

A F R I C A

51%YES

44%

P A C I F I C

YES

C O M P A N I E S A C H I E V I N G R O I B Y R E G I O N A F T E R I M P L E M E N T I N G J O BE V A L U A T I O N , G L O B A L L Y

© MERCER 2015 15

57%

39%

4%

YES

MAYBE

NO


© MERCER 2016 16

J O B E V A L U A T I O NM A K I N G R E L I A B L E C O M P E N S A T I O N A N D B E N E F I T SD E C I S I O N S


J O B E V A L U A T I O N H E L P S Y O U M A K E R E L I A B L EC O M P E N S A T I O N A N D B E N E F I T S D E C I S I O N S

© MERCER 2016 17

J O B E V A L U A T I O NI M P R O V E M E N T S I N D AY - T O - D AY B U S I N E S S

“Job evaluation provides HR generalists witha common language when working with theirbusiness leaders on organizational changes.”

— United States

“Job evaluation facilitates easierdiscussions with all stakeholder groups; lesstime is needed as the job evaluation processis clear to the organization.”

— Germany

“Job evaluation helps employees tounderstand their career paths and providesa clear structure to Line Managers formanaging their personnel.”

— Brazil

“Job evaluation improves parity betweenjobs, seamless talent movements acrossbusinesses, clear flow of communication.”

— India


© MERCER 2016 18

“Equal pay for equal workhas resulted in a higher needfor understanding the value

of a function in anorganization; from a

compensation aspect, thiswill become very important.”

— South Africa

“We believe that job evaluation,through job architecture, should

be a backbone to supporttalent/succession/career

management processes. A lot ofdevelopment is still to be made in

that area.”

— Switzerland

“I think companies are headingto a flexible structure, basedon projects, totally different

from the fixed structure…jobevaluation will be a very

important tool to map the real‘size’ of a position within an

organization.”

— Brazil


J O B E V A L U A T I O NF U T U R E O F J O B E V A L U A T I O N

© MERCER 2016 20

C H A L L E N G E S

Alignment provides organizationswith the foundation to makedecisions on human resourceprograms, strategic hiring, crossborder harmonization, organizationdevelopment and other strategicplanning areas.

Evaluation of individual jobresponsibilities and thecontribution each makes within theorganizational context providesboth managers and HR with aclear view into the heart of howbusiness gets done.

Understanding its jobs provides anorganization with the informationneeded to make critical linksbetween business objectives andHR decisions.

U N D E R S TA N D E VA L U AT E A L I G N

J O BR E S P O N S I B I L I T I E S C O N T R I B U T I O N C O M B I N E / R E F I N E

C R E A T E

O R G A N I Z A T I O N A LC O N T E X T

R E S U L T I N GH I E R A R C H Y

F O U N D A T I O N F O RD E C I S I O N S

ORGANI-ZATIONLEVEL

JOBLEVEL

© MERCER 2016 21

Define the evaluationprocess after implementation

and establish governancearound that process

Gather the appropriateinputs for job evaluation

and job descriptions

Create a communication planand materials to ensure

successful adoption of jobevaluation methodology

C H A L L E N G E ST O P C H A L L E N G E S R E P O R T E D B Y C O M P A N I E S


© MERCER 2016 23


A R E Y O U R E A D Y ?A S K Y O U R S E L FT H E F O L L O W I N GQ U E S T I O N S :

How is your companyresponding to thetrends/challenges in today’stalent landscape?

Do you have the appropriatejob definition for employees toclearly understand jobresponsibilities and careeropportunities?

Do you have a job structurethat is aligned with your currenttalent needs but can also flex tosupport your future needs?

© MERCER 2016 24

Q U E S T I O N S

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