The Best-Practices Guide to
Job Leveling
About Jennifer Peacock
SRA Director of Compensation
Headshot
 20 years of experience in Human Resources
 12 years in a government contracting environment
 9 years in a consulting capacity – Compensation,
Benefits, Recruitment
 3 major compensation plan redesigns &
implementations
 4 large-scale, significant benefit change
implementations
The Best Practices Guide to
Job Leveling
with Jennifer Peacock, Compensation Director at SRA International
Agenda
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Definition
Benefits
Reasons for Undergoing a Job Leveling Exercise
SRA Rationale
SRA Process
Value
Tips
Questions
What is Job Leveling?
• Analytical process to determine the value of jobs in
an organization
• Foundation for reward and talent management
programs
• Means of communicating career paths, facilitating
talent mobility, and delivering competitive rewards
• Addresses business needs:
– attraction, engagement, and retention of key talent
– cost and risk management
– governance
Benefits of Job Leveling
• Alignment with business needs and strategy
• Common language for career paths, job
requirements, and performance expectations
• Linkages to organizational competencies
• Consistent mapping of jobs to external market data
• Contributes to cost-efficient talent and reward
programs and delivery
• Ensure internal equity
• Compliance – government contractors
Reasons for Job Leveling
• Aligns jobs located in multiple regions or across
different business areas
• Creates a framework that integrates employees after
a merger, acquisition, or other structural change
• Drives consistency, competitiveness, and efficiency
among Compensation policies and practices
• Clarifies levels to support career development
SRA Rationale
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•
•
•
Foundation for our new compensation structure
Alignment across the organization
Clear career paths
Compliance
The Evolution of Job Codes at SRA:
Past, Present, & Future
Prior to 2010
• 700 job codes
• Created as
needed
• Variable and
limited content
• Limited
accessibility
• Limited search
capabilities
2011 - 2012
• 1,596 job codes
• Leveling Tool
created, ad hoc for
other jobs
• Limited
differentiation
between levels
• Enhanced
accessibility on
portal and Brass
Ring
• Improved search
capabilities
2013 & Forward
• 500-700 job codes,
linked to market data
• Comprehensive
database of all
descriptions
• Standardized,
comprehensive with
leveling competency
content
• 24/7 online access
with extensive search
and comparability
capabilities
Process
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Create job descriptions – job titles
Evaluate jobs - grades
Develop job families/job tracks
Engage your managers in the process
Create salary ranges
Communicate the program
Job
Evaluation
Project
Planning
Grade
Assignments
Job
Documentation
Benchmarking
Salary
Structures
Implementation
Job Descriptions
• Best job descriptions are living, breathing documents that
are updated as responsibilities change. They do not limit
employees, but rather, cause them to stretch their
experience, grow their skills, and develop their ability to
contribute within their organization.
• SRA Job descriptions include:
– Grade
– FLSA classification
– Job summary
– Responsibilities/duties
– Qualifications
– Experience
– Education
– Working conditions
HRTMS: Manager/Employee View
HRTMS: Job Description
HRTMS: Jobs Under Review
Grades
• Determined by the level a position is at in the
organization
– Software applications
– Salary surveys
– Internal equity
• Employees in the same grade are considered peers in
the organization – at the same level
• Employees in the same grade are compensated in
the same pay range
Grades - GGS
• GGS = Global Grading System
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–
–
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A job hierarchy structure
The methodology to assess jobs against it
Software to facilitate the process
Globally acceptable, yet culturally neutral
• 3 basic steps
– Business scope (revenue, # employees, geographical scope,
diversity/complexity of products & services
– Job banding (dual career ladder, reflect banding rationale)
– Job grading (functional knowledge, business expertise,
leadership, problem solving, nature of impact, area of impact,
interpersonal skills)
GGS Structure
Role Contribution
Band
Expertise
Strategy
3M *
5FS *
Leadership
5BS *
Top
4M *
Grade
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Grade
15
16
17
Management
18
19
20
1st Line Top Mgmt
Career
Top Mgt
Path
Middle Management
Supervisor
Role Contribution
Band
Grade
1
2
Tasks
Expertise
1
3IC *
3
4
5
Skill
Leadership
Top
2
4IC *
Grade
6
7
8
9
10
Individual
11
12
13
14
15
Subject Matter Experts
Contributor
Professional
Career
Technician
Path
Clerical/Admin
Manual Worker
* FS = Functional Strategy, BS = Business Strategy, M = Management, IC = Individual Contributor (Technical Career)
16
17
18
19
20
GGS: Determine Grade
• Factor definition levels – concentration on nature of
contribution and complexity of tasks
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–
–
–
–
–
–
Functional knowledge – knowledge of work and activities
Business expertise – knowledge and expertise about the business
Leadership – guidance to others
Problem solving – mental skills required and complexity
Nature of impact – how the job impacts the business
Area of impact – where the impact will be felt
Interpersonal skills – people skills
• Grade the ROLE, not the INCUMBENT
• Assess worth of role based on positive aspects
• Assumes tasks and responsibilities being performed at optimum
level
GGS: Job Banding Evaluation
GGS: Job Grade Evaluation
GGS – HRTMS – Job Descriptions
• New job descriptions have the factor (job level)
information built-in
• When creating new job descriptions, a series of
responses to determine the level of the factor are
required
• Those answers are entered into GGS to assist in
determining the SRA grade
Compensation Structure
Job Family
A broad functional area used for organizing jobs into useful categories for job maintenance, compensation planning, performance
management, and competency modeling.
Job Track
A set of jobs that share a high degree of similarity, but differ in terms of levels of expertise and expectations.
Job Title/Job Code
The job title is a brief description of a position held by an employee. The job code is a shortened
version of the job title used in HR systems.
Grade
A system used to group jobs together that have approximately the same relative
internal worth (peers) and are paid in the same range.
Salary Range
The range of compensation associated with a grade that is tied to
the market.
J
o
b
T
r
a
c
k
Grade
Civil
Job
Family
Sample:
Compensation Program Refinement Update
Engineering - Core
Job Family
Electrical
Energy
Environmental
Mechanical
20
19
18
17
Grade
16
J
o
b
15
T
i
t
l
e
14
13
12
11
Peers
Master - Energy Engineering
Senior Civil Engineer
Senior Electrical Engineer
Senior Energy Engineer
Senior Mechanical Engineer
Civil Engineer
Electrical Engineer
Energy Engineer
Environmental Engineer
Mechanical Engineer
Associate Electrical
Engineer
Associate Energy Engineer
Associate Environmental
Engineer
Associate Mechanical
Engineer
10
9
8
7
6
5
4
3
2
1
Salary Range (associated with each Grade)
HRTMS: Job Description
Matrix Explorer
Salary Ranges
• Salary Range: the range of pay, which has a
minimum, midpoint, and a maximum, paid for
working at a certain job and at a certain level within
a grade at an organization; the salary paid to the
employee will change according to performance,
time spent at the job, etc., but any changes will fall
within the allocated salary range.
• Market Rate: the usual salary a company is willing to
pay for a job in the market.
Sample Grade/
Salary Range Structure
GG
Min
Mid
Max
Midpoint Diff
Spread
20
$0
$0
$0
0%
19
$197,150
$300,000
$402,850
18
$167,600
$255,000
$342,400
-15%
104%
17
$119,000
$178,500
$238,000
-30%
100%
16
$95,200
$142,816
$190,450
-20%
100%
15
$80,900
$121,393
$161,900
-15%
100%
14
$68,750
$103,184
$137,650
-15%
100%
13
$61,350
$90,802
$120,300
-12%
96%
12
$52,750
$78,090
$103,450
-14%
96%
11
$45,350
$67,157
$89,000
-14%
96%
10
$40,400
$59,098
$77,800
-12%
92%
9
$35,550
$52,007
$68,500
-12%
92%
8
$31,300
$45,766
$60,250
-12%
92%
7
$29,050
$41,189
$53,350
-10%
83%
6
$26,150
$37,070
$48,000
-10%
83%
5
$23,550
$33,363
$43,200
-10%
83%
4
$21,750
$30,047
$38,350
-10%
76%
3
$19,600
$27,047
$34,500
-10%
76%
2
$17,650
$24,358
$31,100
-10%
76%
1
$15,850
$21,922
$28,000
-10%
76%
104%
Utilization of Salary Ranges
• An employee just beginning a new job would start near the minimum
and move towards the maximum as he/she becomes fully functioning
in the job
• Salary ranges overlap to allow for equity between an inexperienced
employee in a higher grade to be paid at the same level as an
experienced employee in a lower grade
Grade 1
Minimum:
$15,850
Midpoint:
$21,922
Maximum:
$28,000
Grade 2
Minimum:
$17,650
Midpoint:
$24,358
Maximum:
$31,100
Grade 3
Minimum:
$19,600
Midpoint:
$27,047
Maximum:
$34,500
Communication
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•
•
•
Develop a communication plan
Engage senior leadership
Take time to develop your message(s)
Use a tiered approach to communication
Gameboard
CASE FOR CHANGE—
CURRENT STATE—
Where are
we now?
• Inconsistent
approach
to compensation,
•
•
•
•
•
•
•
•
job codes, promotion, and titling
Base compensation decisions on
individual circumstances vs. external
factors
Do not consistently consider longer term
and broader implications of individual
salary decisions
Need to strengthen our ability to defend in
an audit
Inconsistent process means managers
must spend too much time on HR related
transactions
Employees are confused about our
compensation system …and in some
cases question the fairness
Managers make decisions and look to HR
to process the transaction
HR is not consistently viewed as a partner
with business on compensation related
decisions
The Comp project has encountered
resistance, but then evolved to
acceptance
FUTURE STATE—
Why should we change?
•
•
•
•
Deliver on our commitment to provide fair
and competitive compensation
Strengthen our ability to deliver
competitive bids well into the future
Reduce risk of non-compliance with DCAA
regulations regarding fair compensation
Respond to concerns raised in the
Employee Engagement survey
Where do we want to be?
• SRA has a competitive, comprehensive program for
compensation
• Improved confidence and conviction of market rates
for both employee compensation and for bidding new
work
• Improved data accuracy for strategic analysis of
compensation pay practices
• Reduced turnaround time for job postings and offers
of employment
• Efficiencies in the merit process and drive a stronger
correlation to performance and market
• Managers are equipped with the information to make
good compensation decisions in partnership with HR
• Employees are clear on their job tracks, level, titles,
responsibilities ,and the associated compensation
• Greater understanding around the whole comp
philosophy and how rewards and recognition play a
role, in addition to base salary increases
• Compliant with both state and federal regulations (in
coordination with Legal)
• HR partners with business supports managers in
providing outstanding people management
STRATEGIC INITIATIVES—
BARRIERS—
How will we get there?
• Implement an education campaign on what a mature compensation program looks like
and its importance to growing, competing for talent, and staying compliant with gov’t
regulations
• Generate significant buy-in through a series of meetings with leadership on jobs and
people
What could make this hard?
•
•
•
•
Lack of broad understanding of the importance
of having a more robust compensation
program
Resistance from managers
A weak partnership between business and HR
Perception that cutting costs is a driver of this
project
Communication Plan
SITUATION ANALYSIS
• Inconsistent approach to compensation, job codes, promotion, and titling
• Base compensation decisions on individual circumstances vs. external factors
• Do not consistently consider longer term and broader implications of individual
salary decisions
• Need to strengthen our ability to defend in an audit
• Inconsistent process means managers must spend too much time on HR related
transactions
• Employees are confused about our compensation system …and in some cases
question the fairness
• Managers make decisions and look to HR to process the transaction
• HR is not consistently viewed as a partner with business on compensation
related decisions
• The Compensation Project has encountered resistance, but then evolved to
acceptance
COMMUNICATION OBJECTIVES
• Implement an education campaign on what a mature compensation program
looks like and its importance to growing, competing for talent, and staying
compliant with government regulations
• Generate significant buy-in through a series of meetings with leadership on jobs
and people
• Spend time educating the organization on what a compensation structure
program looks like
OPPORTUNITIES AND CHALLENGES
• Opportunities:
•
•
•
•
•
Deliver on our commitment to provide fair and competitive compensation
Strengthen our ability to deliver competitive bids well into the future
Reduce risk of non-compliance with DCAA regulations regarding fair
compensation
Respond to concerns raised in the Employee Engagement survey
KEY MESSAGES
• SRA has a competitive, comprehensive program for compensation
• Improved confidence and conviction of market rates for both employee
compensation and for bidding new work
• Improved data accuracy for strategic analysis of compensation pay practices
• Reduced turnaround time for job postings and offers of employment
• Efficiencies in the merit process and drive a stronger correlation to performance
and market
• Managers are equipped with the information to make good compensation
decisions in partnership with HR
• Employees are clear on their job tracks, level, titles, responsibilities ,and the
associated compensation
• Greater understanding around the whole comp philosophy and how rewards and
recognition play a role, in addition to base salary increases
• Compliant with both state and federal regulations (in coordination with Legal)
• HR partners with business and supports managers in providing outstanding
people management
APPROACH
• Use a tiered approach at communications
•
•
•
•
•
•
•
Lack of broad understanding of the importance of having a more robust
compensation program
Resistance from managers
A weak partnership between business and HR
Perception that cutting costs is a driver of this project
Provide tools that help managers understand the new compensation program
• Prepare managers to answer questions from their employees
Provide clear instructions
•
Keep communications simple, straightforward and direct
Educate management and employees on the new program and
structure
Use different forms of media
•
•
•
•
•
•
•
Challenges:
•
Senior Leadership → Group Leadership → Management → Employees
Gain active support from managers
•
Portal
Email
Web Meetings
Newsletter
Manager calls
Listen and respond to feedback
•
Capture ongoing feedback from managers and employees
•
Maintain flexibility and respond quickly to communication needs as they
arise
Communication Timeline
Feb. 18
Feb. 21
Feb. 25
Feb. 28
March 4
Week of
March 4
Week of
March 11
Week of
March 18
• Letter sent to Senior Leadership via email
• Project Overview/WebEx session invite letter sent to Managers
• Senior Leadership presentation
• Communication kits sent to Senior Leadership (Manager letter, Employee Compensation Statement, FAQs)
• Project Overview/WebEx sessions invite letter sent to Employees
• Communication kits sent to Managers (Manager letter, Employee Compensation Statement, FAQs)
• Manager WebEx sessions
• Employee WebEx sessions
• Employee Compensation Statements sent
The SRA Solution
• Created more detailed job descriptions that were reviewed
and edited by managers
• Evaluated all SRA jobs against the market
• Created a logical compensation structure that was reviewed
and “tweaked” by leadership
• Mapped employees to the new structure utilizing the
management team
• Educated leadership, management, and employees on the
new structure and program to ensure that it is understood
• Outlined career development paths in a visual way that
managers can utilize and employees can access
What is the Value of Job Leveling?
• Compliance
• Fair compensation practices
• Career development
Compliance
• Compensation plays a large role in ensuring SRA is
compliant with EEOC, OFCCP, and the DCAA
– Fair pay practices are a focus
• Compensation’s role in audits
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–
–
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Provide employee data
Provide policies/practices documentation
Defend practices
Be available for interviews
Job Qualifications vs. Employee Skillset
• SRA pays for the job duties, not the skills and expertise of
the employee/candidate
• Example
– Senior Software Engineer with 20 years experience and an MBA
making $105,000
– McDonald’s has an opening for a cashier requiring a HS diploma and
no experience
– SSE applies for cashier job at McDonald’s
– McDonald’s offers SSE $8/hour
– McDonald’s job does not require 20 years of engineering experience
and an MBA
Benefits to Employees
Clear career
development
choices
available
Job title
maps to
current
market rates
Accurate job
title
Job title
reflects
duties being
performed
Tips
• Senior management support
• Manager engagement and support throughout the
process
• Clearly defined process
• Well thought out communication plan
• Education for the entire organization
• Don’t cut corners
• Build extra time into the schedule
Questions
How To Contact Us
Ashley Robinson
ashley@hrtms.com
Don Berman
don@hrtms.com
919.351.JOBS (5627)
www.hrtms.com