HR Strategy: 4 Benefits of Setting Up a Robust Job Leveling Framework

Editor's Note: Take a look at our featured best practice, McKinsey Talent-to-Value Framework (230-slide PowerPoint presentation). Curated by McKinsey-trained Executives Unlocking Business Excellence: The McKinsey Talent-to-Value Framework Toolkit In the dynamic world of modern business, staying ahead of the competition means maximizing the potential of your most critical asset – your people. The **McKinsey [read more]

Also, if you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy's Human Resource Management (HRM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Inadequately structured jobs create disputes, negative perceptions, inequality, and frustration among employees.  On the other hand, well-articulated jobs, appropriate distribution of work, justified authority levels, and correct estimation of value of individual jobs elevate employee engagement levels, productivity, and job satisfaction.  Organized job levels are a sign of effective Human Resources Management function.

The lack of a structured job design—and ill-defined jobs—renders the organizations ineffective and burdened with excessive staffing and payroll costs.  This warrants from the leadership to plan and undertake a Job Leveling initiative.  Job Leveling is a disciplined approach to gauge the value of work for individual positions across the organization.  It entails ascertaining the nature of work done by each position, authority levels, and the effect of each job on business results.  The initiative is critical in administering rewards structures.

However, Job Leveling is a concern at most organizations—not many people are satisfied with the value assigned to their roles.  The absence of proper—or inadequate—job levels yields grave consequences for the entire organization.  Jobs valued higher than their actual value lead to wastage of resources, whereas low valued jobs are perceived as offensive and inculcate demotivation.

Job Design and Job Leveling is essential when organizations consistently encounter issues, such as:

• Constant employees complaints and demands to reclassify jobs
• Excessive job titles
• Widespread dissatisfaction with remuneration
• Task / processes redundancy
• Financial outflow
• Staffing imbalances and top heavy structure

Workforce planners should lay out a clearly-defined Job Leveling Framework to tackle these issues and methodically benchmark the value of jobs at their organizations.  To accomplish this, they need to first analyze all the activities required under each position, the professional competences and demeanor essential to perform those activities, and gauging the effect each position has on business results.

The 4 core benefits to developing and executing an efficient Job Leveling Framework include:

1. Establish Consistency across the Human Resource Initiatives
2. Develop Clear Paths for Career Growth
3. Improve Ease of Administration
4. Increase Flexibility for M&A

Let’s delve deeper into 3 of these benefits, for now.

Establish Consistency Across the HR Initiatives

A standardized job evaluation approach enables a consistent job structure terminology.  It makes communication and Job Leveling related decisions easier.  A Job Leveling Framework aids in defining relative placement of various jobs, using elements, such as, knowledge, problem solving, interaction, impact, and accountabilities.  Alignment of jobs through a Job Leveling Framework helps in developing consistency across other HR initiatives and make better talent related decisions.

Develop Clear Paths for Career Growth

Organizations use clear career pathways to enhance employee engagement, meet employee expectations, and provide opportunities for their development.  A Job Leveling Framework provide clear-cut job structure to inspire the employees.  Career pathways developed through Job Leveling Framework helps the leaders as they strive to improve the amount of mobility across teams, units, and divisions.

Improve Ease of Administration

A Job Leveling Framework assists in developing efficient methods to administer HR initiatives.  A Job Leveling Framework enables improved efficiencies and decisions related to key talent and their work.  For instance, it streamlines pay grades and salary structures; standardizes job titles; simplifies short-term incentive criteria and objectives definition; and structures long-term reward eligibility criteria and nominations.

Interested in learning more about the Job Leveling Framework and benefits associated with its implementation? You can download an editable PowerPoint on HR Strategy: Job Leveling Framework here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”

– Michael Duff, Managing Director at Change Strategy (UK)

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd

“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”

– Omar Hernán Montes Parra, CEO at Quantum SFE

Want to Achieve Excellence in Human Resource Management (HRM)?

Gain the knowledge and develop the expertise to become an expert in Human Resource Management (HRM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

Learn about our Human Resource Management (HRM) Best Practice Frameworks here.