There is a change in how organisations are approaching their job levelling strategy. A bigger focus on pay equity means that analytical job evaluation — in one form or another — is still on the agenda. However, the changing nature of jobs and fluidity of job responsibilities means that leading organisations are now focusing on a streamlined and transparent process rather than a traditional “black box bureaucracy” approach that is based on a complex points-based system.
Easily understood methodologies, such as career levels, job slotting, and job mapping, are increasingly favoured by companies over complex points-based models because it allows for more flexibility. Typically, points-based models are more rigorous, formal, and quantitative; they require detailed analysis of the specific responsibilities and accountabilities of a job. Factor-based models allow for a broader view on the key elements of a role. As we noted in our prior articles, Job Architecture and Agility and Managing the Balance, what works well in one organization may not work so well in another.
There is no dominant approach to job levelling in the market, but we do see a shift from traditional, rigid approaches to more flexible job levelling. Our current European clients are split in their approach to job levelling, with about half using a more flexible factor-based approach and half opting for the traditional points-based approach. However, the vast majority of our new clients are opting for the factor-based approach.
When assessing whether your organization would benefit from a change in your job levelling approach, we recommend following these five key steps.
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