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1. Job Famil y Modelin g yg Tools to Support Job Evaluation and Career Development October 21, 2009 Vincent Milich October 21, 2009

4. Job Family Modeling defined Job Family Modeling defined A job family describes a number of different roles which are engaged in similar work. A job family model considers job family model considers how many levels of that type of work there are and describes them in a way hi h l l diff ti t Job family modeling is a tool w hi c h c l ear l y diff eren ti a t es the levels. Job family modeling is a tool that can serve as the foundation for many Human Resource processes and systems, including an approach integrating people and jobs. 4 © 2009 Hay Group. All rights reserved

11. Integrating with other HR programs Integrating with other HR programs Career Paths and Career Develo p ment p • The Job Family model describes the work along logical career paths. Tid ltd hi dl t • T o prov id e a comp l e t e an d compre h ens i ve career d eve l opmen t plan, the following are also required: • Competencies and skills associated with each job family and level level • Development resources employees can use to become more prepared for career advancement. • Assessment tools for manager and/or employee • Assessment tools , for manager and/or employee • Training for management on: • Assessment versus the model • How to coach and develop staff 11 © 2009 Hay Group. All rights reserved • How to coach and develop staff

26. Job Family Modeling and Calibrating Jobs Across Businesses and Integrating Acquisitions Across Businesses and Integrating Acquisitions „ There is often a need to develop a „ There is often a need to develop a common “language” about jobs, titles, and levels during mergers and acquisitions, or when aligning bt b i it b e t ween b us i ness un it s − Job family models can provide a t li d h t lib ti s t ream li ne d approac h t o ca lib ra ti ng a job structure between diverse units or businesses 26 © 2009 Hay Group. All rights reserved

12. Integrating with other HR programs Integrating with other HR programs Job Slotting Job Slotting • Job family modeling can be used as a basis for streamlining job measurement in organizations When a position matches 80%+ of measurement in organizations . When a position matches 80%+ of what is described in the model, it can be slotted at that level. • It is important that Hay Guide Chart job evaluation underlies the core roles and Ha y Grou p j ob famil y modelin g efforts ypj y g • It can ensure calibration across families, for example, ensuring that a level 3 in one family is equivalent to a level 3 in another family • The Hay Guide Charts can always be used to evaluate jobs that do not fit into the job family model. There will always be positions in an organization that do not fit in a job family model. 12 © 2009 Hay Group. All rights reserved

14. Integrating with other HR programs Integrating with other HR programs Performance Management and Promotions Performance Management and Promotions • Job family models provide the basis for a new or enhanced performance management process: performance management process: • The job family models contain information on the most typical performance measures for the roles • The com p etencies associated with the role p rofiles can be pp incorporated into the performance management process. • The job family models readily lend themselves to supporting the promotion process. They identify the criteria that differentiate one level from the next, and can be used as a tool to support the management decision making process on promotions. 14 © 2009 Hay Group. All rights reserved

13. Integrating with other HR programs Integrating with other HR programs New Approach to Total Reward Management New Approach to Total Reward Management • Job family models can represent an important first step in the development of a new compensation structure for an organization development of a new compensation structure for an organization . • In this case the job family model may serve as the format to document job content in the organi zation. Rather than writing new j ob descri p tions or collectin g j ob q uestionnaires , the j ob jp gjq ,j family models are developed and jobs in the organization are mapped to the model(s). • The jobs/structure then needs to be priced against the marketplace to develop appropriately competitive salary ranges. • This also provides the organization with the opportunity to customize their compensation package by job family and/or job t 13 © 2009 Hay Group. All rights reserved t ype.

15. Integrating with other HR programs Integrating with other HR programs Employee Communications Employee Communications • Job family model(s) can become the basis for communicating a number of aspects of the organization ’ s human resource programs number of aspects of the organization s human resource programs to employees. • It can explain the basis for the grade structure, describing to em p lo y ee’s the meanin g of each g rade in a lan g ua g e the y are py g g g g y familiar with. • It can describe the salary structure as well, providing a meaningful description of the grades. • It can provide them with a basis for career paths and promotions, showing the employee how the role at the next level in their job family differs from their role. 15 © 2009 Hay Group. All rights reserved

16. Integrating with other HR programs Integrating with other HR programs Organization Design Organization Design • Job family model(s) can represent the implementation of a new organization structure in a client where Hay Group has lead a redesign effort. • The Organization Design effort will result in a new operating model and organization structure for the client. • Many jobs may change in nature and scope. To implement the new organization, it will be necessary to quickly define the new roles, their accountabilities, and potentially the co mpetencies critical to success in those roles. • The Core Roles Framework is an ideal way to describe these new or changed jobs quickly, thoroughly, and in a way that integrates with other human resource processes. 16 © 2009 Hay Group. All rights reserved human resource processes.

29. Job Family Modeling and Career Development Development „ Career development historically ranks „ Career development historically ranks among the areas where employees are least satisfied, as measured in employee engagement surveys − This represents an opportunity to make great gains, impact turnover, hl t en h ance emp l oyee engagemen t − Link training, development, and availability of advancement availability of advancement opportunities with a well managed employee development and mobility p rocess 29 © 2009 Hay Group. All rights reserved p

32. Job Family Modeling and Accelerating Development of Technical Talent Development of Technical Talent „ In many industries a dramatic „ In many industries a dramatic shortage of senior technical talent looms on the horizon as “baby boomers” begin to retire − A majority of senior engineers in the US will retire in the next 5 to 10 10 years − Organizations need to quickly develo p j unior technical talent to pj fill these roles, increasing their breadth and depth of expertise 32 © 2009 Hay Group. All rights reserved

3. How CEOs think about human capital How CEOs think about human capital “M f th f t j b f ill b „ “M any o f th e f u t ure j o b s o f our company w ill b e different in size, nature or activities from those we now have ” now have . “Why can’t we use one approach for „ “Why can’t we use one approach for compensation, promotions, development, succession planning and managing succession planning , and managing performance?” 3 © 2009 Hay Group. All rights reserved

18. Hay Group ’ s Unique Capabilities Hay Group s Unique Capabilities Proximity to Results A1 A2 A3 Role Profile Matrix for Leadership Jobs Planning Co-ordination Business & & Policy & Commercial Operations Enterprise Ld hi 76% 66% 57% L ea d ers hi p Strategy Formulation s of Work 50% 43% Strategic| Alignment Level s Strategic Implementation Tactical 18 © 2009 Hay Group. All rights reserved Implementation

20. Hay Group ’ s Unique Capabilities Hay Group s Unique Capabilities A1 A2 A3 Extending the matrix for individual contributor and management roles Analysis Balancing Delivery & Support 43% 38% 33% Manager (1, 2, 3) Senior o f Work 29% * * * * * * Professional (6-8) Professional ( 3-5 ) Levels o * ** ( ) Entry Professional (1-2) ** * 20 © 2009 Hay Group. All rights reserved * Role profile prepared

9. Job Family Modeling Job Family Modeling Overview of the Job Family Sample Job Family Description This job family exists to optimize the work of the assi gned customer area through partic ipation in business planning, needs analysis and business risk assessment, leading process redesign, identifying the implications of business process changes on technology, and consulting with the user on how best to support the business through the effective use of technology. Members of this job family are responsible for helping to develop and advance a long- range vision of how IT will support the business Overview of the Job Family range vision of how IT will support the business . Key Differentiating Criteria Level 1 Level 2 Level 3 Level 4 Level 5 Technical Knowledge Business Knowledge Analytical Skills Project Role Customer Service Role Communication Skills Decision Making Budget Role Experience and Education Performance Measures Competencies 9 © 2009 Hay Group. All rights reserved Career Path Options (from and to) Selection Criteria

17. Hay Group ’ s Unique Capabilities Hay Group s Unique Capabilities Hay Group is uniquely positioned to develop job family Hay Group is uniquely positioned to develop job family models and their applications: − Hay Group’s unparalleled understanding of work and job levelling – 60+ years of experience, research and work with organizations − Integrated approach to HR services with professionals in reward, career planning, development Hay Group has developed the Role Profile Matrix and Core − Hay Group has developed the Role Profile Matrix and Core Roles Framework to serve as the foundation for our work in job family modelling 17 © 2009 Hay Group. All rights reserved

24. Hay Group ’ s Core Role Framework Hay Group s Core Role Framework Management Sales Finance Level Technical etc Work in Job Families described based on the function and nature of work Management Sales Finance Level Technical etc . 5 4 Manager Specialist Manager Manager Specialist 3 Manager Specialist Manager Specialist Manager Specialist Dual Career Paths 1 2 Analysis Balancing Deliver y Different type of jobs within 24 © 2009 Hay Group. All rights reserved y same Job Family and level

8. Job Family Modeling Job Family Modeling Overview of the Job Family Sample Job Family Description This job family exists to optimize the work of the assi gned customer area through partic ipation in business planning, needs analysis and business risk assessment, leading process redesign, identifying the implications of business process changes on technology, and consulting with the user on how best to support the business through the effective use of technology. Members of this job family are responsible for helping to develop and advance a long- range vision of how IT will support the business Overview of the Job Family range vision of how IT will support the business . Key Differentiating Criteria Level 1 Level 2 Level 3 Level 4 Level 5 Technical Knowledge Business Knowledge Analytical Skills Project Role Project Role Customer Service Role Communication Skills Decision Making Bd tRl 8 © 2009 Hay Group. All rights reserved B u d ge t R o l e Experience and Education

19. Hay Group ’ s Unique Capabilities Hay Group s Unique Capabilities Core Roles Framework Core Roles Framework − Build on the foundation of our understanding of the different natures of work: natures of work: − Analysis and Support – Roles that support the organization’s success (e.g. staff roles) − Balancing – Roles that enable and directly contribute to success (e.g. matrix roles) − Delivery – Roles that produce success outcomes (e.g. sales, production) 19 © 2009 Hay Group. All rights reserved

22. Hay Group ’ s Core Role Framework Hay Group s Core Role Framework ƒ Role Summary ƒ Nature of Contribution ƒ Competencies ƒ Performance Criteria ƒ Skills & Experience ƒ Career Development 22 © 2009 Hay Group. All rights reserved

21. Hay Group Job Family Modeling Hay Group Job Family Modeling The Core Roles Framework includes descriptions covering up to 50 core roles found in all organizations. In addition to a description of the work, they provide: − Metrics to link with performance management − Competencies to provide the basis for talent management − Levels and families of work to align with grade levels and reward strategies − Career development level and opportunity Career development level and opportunity These core roles can be customized to cover nearly all professional and management jobs, below the executive level 21 © 2009 Hay Group. All rights reserved

25. Hay Group ’ s Expanded Role Profile Matrix AF d ti f Rewards Hay Group s Expanded Role Profile Matrix A F oun d a ti on f or Integrated Human Resources Recruitment/ Selection Rewards Performance Management Role Profile Matrix Management Case Studies Phili N th A i Career Paths/ Promotion Succession Planning „ Phili ps N or th A mer i ca „ Goldman Sachs „ Hess Training & Development 25 © 2009 Hay Group. All rights reserved „ Hess

34. Dramatically Improve Career Opportunities Dramatically Improve Career Opportunities Case Stud y : y Hess Global Refinery Organization „ Solution − Developed job family career paths for all the types of work in the refinery − Developed detailed skill and competency requirements requirements − Identified a learning curriculum to accelerate development of junior staff − Source coaches to prov ide technical coaching and development − Enhance cross-organizational moves to develop breadth of expertise and improve retention of j unior talent 34 © 2009 Hay Group. All rights reserved j

35. How Hay Group approaches a job family modeling project modeling project 1. Understand 2a. Design 2b. Integrate Implement Key Actions • Understand scope of job families to be included •Collection of material • Meetings with key Key Actions •Description of Job Family levels •Development/ Calibration of Grading Structure Key Actions ƒ Development / calibration of salary and benefits policy ƒ Cost Analysis ƒ Define competencies Key Actions •Mapping – Allocation of jobs and/or people to career levels • Communication to staff • Meetings with key stakeholders •Value Chain Analysis of Grading Structure •Check for cross functional consistency • Define Management and Individual Contributor paths ƒ Define competencies ƒ Link with career development resources ƒ Establish selection criteria ƒ Create career paths ƒ Align with performance programs • Communication to staff • Management training • Establish governance process Deliverable(s) • Job Family Architecture • Criteria for differentiating levels of work programs Deliverable(s) • Job Family Model •Role/ Level profiles • Grading Structure Deliverable(s) • Integrated career program aligned with promotions, rewards development Deliverable(s) •Integrated career model “up and running” 35 © 2009 Hay Group. All rights reserved levels of work • Grading Structure (new or calibrated) •Performance Metrics rewards , development , selection and career planning

5. Hay Group ’ s Job Family Modeling Hay Group s Job Family Modeling Ait td htTl t A n i n t egra t e d approac h t o T a l en t Management, Rewards and Performance Management Performance Management „ An approach that provides: − A clear and rigorous description of how work changes at each career level in an organization changes at each career level in an organization − Robust management and individual contributor career paths, customized to an organization − The foundation for performance and talent management, as well as your reward programs 5 © 2009 Hay Group. All rights reserved

2. Agenda Agenda „ What is job family modeling? „ What can j ob famil y modelin g do for an or g anization? jy g g „ Unique Hay Group capabilities − Core role framework „ Case examples − Philips Gld S h − G o ld man S ac h s − Hess 2 © 2009 Hay Group. All rights reserved

6. Job Family Modeling Job Family Modeling „ At the foundation of a job family model is an effective „ At the foundation of a job family model is an effective description of levels of work. − Identify a family of work − Clarify what differentiates one level from the next, and how many levels there are: Individual Contributor − Individual Contributor − Management − Provide a description of the nature of work at each Provide a description of the nature of work at each level 6 © 2009 Hay Group. All rights reserved

10. Hay Group Job Family Modeling A Foundation for Integrated Human Resources Hay Group Job Family Modeling Management Rewards Consistent Approach to Levels and Grades Performance Management Aligns Metrics Job Family Model • Description of Work Career Paths/ Recruitment/ • Competencies for Success • Measures of Performance Promotion Defines Career Path Opportunities and Criteria Selection Identifying Criteria for Selection Training & Development Links to Development Succession Planning Defines Criteria for 10 © 2009 Hay Group. All rights reserved Links to Development Needs and Resources Defines Criteria for Advancement, to Assess Candidates

23. Hay Group ’ s Core Role Framework Hay Group s Core Role Framework Management Sales Finance Level Technical etc Work in Job Families described based on the function and nature of work Management Sales Finance Level Technical etc . 5 4 3 Manager Specialist ƒ Role Summary ƒ Characteristics/ Key Accountabilities ƒ Competencies 1 2 Advisors Coordinators O p erations Different type of jobs within same Job Family and level ƒ Performance Criteria ƒ Skills & Experience ƒ Career Development/ Potential Next Moves 23 © 2009 Hay Group. All rights reserved p same Job Family and level Potential Next Moves

28. Job Family Modeling and Calibrating Jobs Across Businesses Across Businesses Case Study: Case Study: Philips North America Organization „ Solution − Developed job family models for 50 + job functions Developed job family models for 50 job functions − Developed more robust individual contributor paths as well as management paths − The different businesses “ma pp ed” current j obs pp j and people to this new common structure − Job family models are now used for: − Quickly integrating acquisitions − Communicating job opportunities across North America − Served as the basis for a common reward tt 28 © 2009 Hay Group. All rights reserved s t ruc t ure − Job slotting and market pricing

33. Dramatically Improve Career Opportunities Dramatically Improve Career Opportunities Case Study: Case Study: Hess Global Refinery Organization „ Situation „ Situation − Very few senior engineers − Some with “deep and narrow” experience „ Problem „ Problem − Need to shorten the development time for junior staff − Need to provide more opportunities to broaden expertise in all areas of refinery operations − Need to provide more opportunities for advancement to retain the junior and middle level talent 33 © 2009 Hay Group. All rights reserved

27. Job Family Modeling and Calibrating Jobs Across Businesses Across Businesses Case Study: Case Study: Philips North America Organization „ Situation − 30,000 employees in 6 different organizations 30,000 employees in 6 different organizations − Very diverse businesses − Frequent acquisitions − Historically no common jobs, structure, salary program, incentive pay programs, „ Problem − Redundancies across HR organizations − Inability to move people across the organizations − Employee dissatisfaction with inequities in pay, itilld t titi 27 © 2009 Hay Group. All rights reserved i ncen ti ve l eve l s, a d vancemen t oppor t un iti es

30. Dramatically Improve Career Opportunities Dramatically Improve Career Opportunities Case Study: Goldman Sachs Global IT Organization Goldman Sachs Global IT Organization „ Situation − Paying extremely well Wki ithldi d thli − W or ki ng w ith l ea di ng e d ge t ec h no l og i es − No budget or resource constraints − Experiencing increasing turnov er and employees expressed dissatisfaction with career develo p ment p „ Problem − Employees feel “pigeon holed” − Increased p a y without chan g es in j ob duties or s y stems py g j y supported − IT staff feeling stuck, new skills but no new experiences − Managers disinclined to release employees for development opportunities 30 © 2009 Hay Group. All rights reserved development opportunities − No information on opportunities across IT

31. Dramatically Improve Career Opportunities Dramatically Improve Career Opportunities Case Study: Goldman Sachs „ Solution − Web Based Career Development System: − Job families to describe role opportunities Skills and competencies for each role/opportunity − Skills and competencies for each role/opportunity − Self-assessment tools − Project opportunities and business issues − Development advisor − Governance Process − Factor employee career interests into selection and project staffing − Tracking of inter-divisional movement − Employees targeted for moves by date certain − Balance opportunities for prime projects, new technologies to ensure “ star ” employees are satisfied 31 © 2009 Hay Group. All rights reserved to ensure star employees are satisfied − Professional Development Fund - Employees “vest” $2,000 per year to be spent in consultation with management

7. Job Family Modeling Business Job Family Modeling Individual Contributor Career Tracks Management CTk Analysis Job Family Families of Work in an IT Function C areer T rac k Level Operations Technology Engineering Applications Business Solutions End User Services Business Analysis Project Management Management 10 Director 9 Senior Technical Architect Senior Systems Architect Client Relationship Manager Business Systems Program Manager Senior Pro j ect Senior Manager Mana g e r Technical Architect Systems Architect Consultant j Manager g 8 Senior Technology Specialist Technology Specialist Senior Systems Analyst Systems Analyst Product Architect/Level 3 Support Senior Business Analyst Project Manager Team Lead 7 Senior Technology Analyst Senior Applications Analyst Client Computing Analyst Business Analyst 6 Lead Systems Operations Specialist Technology Analyst Applications Analyst Client Computing Technician Technical Support Services Desk Associate II 5 Senior Systems Operations Technology Associate Applications Associate Associate Business 5 Senior Systems Operations Specialist Technology Associate Applications Associate Associate Business Analyst 4 Technical Support Services Desk Associate I 3 Systems Operations Specialist 7 © 2009 Hay Group. All rights reserved 2 1 Associate Operations Specialist

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