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Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
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Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
Themenforum IV

Die Funktionsbewertung im Umbruch - Job Architecture als Antwort auf
eine sich verändernde Arbeitswelt?

Peter Devlin                   Maximilian Evers
Partner HCAS Total Rewards     Senior Manager Human Capital
Deloitte Consulting GmbH       Deloitte Consulting GmbH
Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
Job Architecture
How does Job Architecture need to evolve to meet the needs of Future of Work?
Deloitte Consulting GmbH
Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
Agenda

            1   Introduction to Job Architecture

            2   The Future of Work

            3   Impact on Architecture Design

            4   Questions

2020 Deloitte                                      1
Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
Introduction
In recent years, Job Architecture has continued to be a
key focus area in many organizations

          Job Architecture serves a purpose…                                         … but the business dynamic has changed

                                                                                 The goal for HR professionals is to find new ways to establish a strong and
                                                                                 sustainable framework that can support key business priorities; increase
                                   Risk Excellence                               efficiencies in human capital operations; reflect employee expectations
                               Governance | Compliance                           for greater clarity on career paths and opportunities; and recognize new
                                                                                 and disruptive models of how work gets done.
                Learning and        Performance            Succession
                Development         Management              Planning
                                                                                     … which leaves us with some challenges
                 Workforce           Employee
                                                            Rewards              Organizations should transition on the future of work, taking proactive
                 Planning            Experience
                                                                                 stance on understanding how work will be done in the future and the
                 Resource              Talent               Career               impact of that on Job Architecture, including:
                 Planning            Acquisition            Pathing
                                                                                  The organization of work and types of job structure(s) needed
                     Most common Job Architecture building blocks                 How jobs may be defined more broadly and what implications this
                                                                                   might have on Job Architecture
        Job levelling/evaluation            Functions and families framework
        Job titling terminology             Career tracks                       Different career tracks required and a need for more skills and
        Pay structures/benchmarking         Program governance                   competency management

2020 Deloitte                                                                                                                                              2
Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
The future of work – A human capital perspective
Job Architecture is being impacted by at least two out of three major developments. One the one hand, businesses
across nearly every industry are being disrupted; on the other, the workforce itself is shifting in composition, demands,
and expectations

                             WORK                      WORKFORCE                         WORKPLACE
                      How the nature of work is     Who can perform the work as         Where the work can get
                       changing to achieve new       it changes and how to close      done geographically and how
                       business goals, requiring       skills gaps by upskilling or    to maximize collaboration,
                      new skills and capabilities   tapping into alternative talent   productivity, and consistency
                                                                  pools                 with physical design and
2020 Deloitte                                                                                 technologies                  3
Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
The future of work – A human capital perspective
We are seeing new organizational designs emerge, new skills required and a new relationship evolving

                How things were                How things are                        How things work

                                                                B
                        A                           A

                    B
                                                F           C           D

                C       D      E
                                                                    G
                                                        E

2020 Deloitte                                                                                          4
Die App zur Veranstaltung - "F.A.Z.-Fachverlag Events" App-Code: pftr2020 - TOTAL REWARDS
The future of work – A human capital perspective
Changing jobs and skill requirements driving our clients to consider new elements and perspectives

Some jobs that didn’t exist 10 years ago                “Human” skills are becoming more important than ever

                Social Media Manager
                                                         # Communication                           # Strategic Thinking                    # Collaboration & Leadership
                                                         Listening, responding, and                Exercising judgment and leadership      Effectively work with others, team with
                                                         expressing ideas effectively in           to decide the way forward in            others, and lead others
                Data Scientist                           different contexts, influencing           complex environments                      • Teamwork
                                                         others                                      • Decision making                       • Leading teams
                                                           • Service orientation                     • Professional ethics
                Cloud Architect                            • Cultural fluency                        • End-to-end/Big Picture thinking
                                                           • Emotional judgment

                Mobile Web Developer                     # Problem Solving                         # Self-Development                      # Analytical Thinking
                                                         Finding creative solutions to difficult   Continuously evolving and up-skilling   Processing complex information and
                                                         or complex issues                         oneself                                 drawing accurate conclusions
                                                           • Design thinking                         • Intellectual curiosity                • Critical thinking
                Experience Designers                       • Agile thinking                          • Self-management                       • Data fluency
                                                           • Innovative thinking/creativity                                                  • Digital/technical fluency

                Automated Driving Jobs

                    Change in nature of careers: Average tenure in a job is
Impact on Job Architecture design
Three-quarters of our Global Job Architecture survey participants indicate, that they have undergone a redesign project
in the past five years or are currently in the midst of a redesign (vs. 66% in 2017)

Last time your redesigned your JA?                                                           How responsive is your approach?

                N/A - have not redesigned                13%
                                                                                                        Not at
                                                                                                          all
                             5+ years ago                13%                                             16%
                                                                                                                                Somewhat
                                                                                                                                  34%
                            3-5 years ago        7%
                                                                                              Very Responsive
                                                                                                    24%
                            1-3 years ago                        19%
                                                                                                                  Responsive
                                                                                                                     26%
                             < 1 year ago               12%

      Undergoing/planning a project                                                  36%

Top 5 drivers that prompted these projects

                  69%                       56%                        43%                     38%                                                   36%
                  Job structure             Career pathing and         Pay program assess-     Minimal Job                                           Workforce planning
                  practices/changes         talent development         ment/alignment          Architecture in place                                 and HR reporting
                                                                                                         Source: Deloitte 2020 Global Job Architecture Practices Survey (preliminary results)
2020 Deloitte                                                                                                                                                                                   6
Our hypotheses for Job Architecture re-design
In light of new business models, ways of working, and technology, it seems worth re-thinking traditional approaches to
Job Architecture

   Traditional                  “Tomorrow's workforce might not be managed effectively using yesterday's methods”        Future

  1.        Organizational/departmental view                                                    Functional view on the organization

  2.        Detailed jobs descriptions                                                                         Generic role profiles

            (Semi)analytic job evaluation/                                                            Leaner levelling approaches/
  3.        Narrow grade structure                                                                    Flatter, broad level structures

  4.        Careers go up (“or out”)                                                            New career journeys incl. re-skilling

  5.        Information stored de-centralized                                          Information intertwined with cloud solutions

2020 Deloitte                                                                                                                           7
1. Taking a functional view on the organization
Jobs can be organized into Functions, Job Families and Roles based on the nature of work performed – agnostic of
organizational structure or reporting relationships

  A Role Profile describes                                                                                         If 2 (or more) jobs are
  basic job characteristics    Current Title                 Team Assistant                                         70% similar, they can
     and conditions of         (Example)                          Office           Executive
                                               Assistant                                         Board Assistant       mostly likely be
  employment. The name                                         Administrator       Assistant                             consolidated.
    quickly allows us to
  understand what the job
            does.
                               Role Profile                                                                        Differentiation in terms
                                               Assistant I     Assistant II      Assistant III    Assistant IV     of levels (e.g. based on
    A Family is a group of                     (Level S2)       (Level S3)        (Level S4)       (Level S5)          levelling/grading
  roles that require similar
                                                                                                                        methodology).
   skill-sets/competencies
  and represent a specific
           discipline.         Job Family
                                                                       Administrative
                                                                         Support
  A Function is a collection
        of Job Families
    and the highest level
     organizing principle      Function
    within the framework,                                            Corporate Services
   reflecting a substantial,
    discrete type of work.

2020 Deloitte                                                                                                                                 8
2. Starting a new era of “job” descriptions
Job descriptions are no longer about exhaustive lists of job duties or pseudo legal documents developed to cover all the
facets of jobs – We think of them more often as “Role Profiles”

      Job descriptions focus on the differences between jobs,…                             …Role profiles emphasis the similarities between jobs

  •     1 job : N employees                                                            •   1 role : N jobs

  •     A job description is typically written for each and every job                  •   A role profile structures and summarizes similar and comparable
                                                                                           jobs in a job family framework
  •     It contains individual, often numerous tasks, activities and
        underlying requirements which are described in detail                          •   Instead of describing granular tasks and activities, the role profile
                                                                                           is more process-oriented and can cover a variety of jobs
  •     The rigid framework is perceived as cumbersome in today's
        dynamic and changing work environment. For agile companies                     •   The generic role description is geared towards the "Future of
        with frequently changing tasks, it is difficult to maintain this                   Work", with its changing nature of jobs, as it does not get lost in
        structure                                                                          details

                As a response to the Future of Work 77% will be fine-tuning existing jobs and redesigning work into new roles. A rising number of
                companies have started to cluster several jobs to more generic roles. Also, HCM cloud solutions pick up this logic to structure their system
                                                                                                                     Source: Deloitte 2020 Global Job Architecture Practices Survey (preliminary results)
2020 Deloitte                                                                                                                                                                                               9
3. Moving towards a simple and more customized levelling approach
Reducing complexity and ensuring flexibility is key. Factors and Levels need to be able to cover future jobs and cope with
a dynamic and changing work environment

                From analytical job evaluation methodologies…                               …to broader and less-complex career levelling approaches

  •     55% of companies use an off-the-shelf solution from a major provider, another   •     Levelling guides are a rubric-style evaluation tool to identify number of levels
        45% use either an adapted or in-house solution                                        and assignment of jobs to those levels

  •     Many companies evaluate nearly every job using 5-10 criteria                    •     Create consistent and holistic criteria that roles may need in order to
                                                                                              successfully perform duties
  •     A majority of companies (71%) complain that the evaluation
        process/maintenance is too time- and resources intensive                        •     Provide consistent criteria for entry and movement through a job
                                                                                              progression
  •     Potential requirements considering the Future of Work:
          Move away from an overreliance on hard numbers but still grasp the           •     Supplement role profiles, career progressions, performance management
            essence and complexity of the job                                                 discussions/goals
          Map new and more fluent forms of leadership, careers, and team work
          Capture new ways of work and underlying skills and requirements

                   41% of respondents perceive that analytic job evaluation is “old thinking”. 47% consider replacing their point-factor methodology in the
                   near future, moving to a simplified levelling approach (67%).
                                                                                                                            Source: Deloitte 2020 Global Job Architecture Practices Survey (preliminary results)
2020 Deloitte                                                                                                                                                                                                      10
3. Moving towards a simple and more customized levelling approach
Criteria that will be most relevant in evaluating jobs in the next 3 to 5 years

                                                                     Scope of work
                                                  Cultural agility                   Autonomy
                                 Project management                                         Decision making

                         Digital competencies                                 Role & Delegation       Impact/value creation                           “Though,
                                                                                                                                                    ‘traditional’
                Knowledge management                                                                        Budget/revenue responsibility
                                                                                                                                                evaluation criteria
                                                                                                                                                 are still amongst
                   Leadership skills                                                            Financials/  Direct span of control
                                                                                                People Mgmt.
                                                                                                                                                 the top criteria,
                                                                                                                                                     behavioral
                 Strategic thinking                                                                              People Management
                                                                                                                                                competencies and
                    Problem solving
                                                                                                Qualification
                                                                                                                Years of experience
                                                                                                                                               skills related factors
                                                                                                                                                       prevail”
                                                                                                            Overall operational and business
                            Complexity
                                                  Behavioural Competencies/Skills                             knowledge and experience

                                                                                                                 Formal
                             Functional agility
                                                                                                      education/degree/certifications
                  Interfaces/influence and interaction                                      Business Acumen
                                       Creativity and innovation               Communication
                                                               Change Management                                                                 Source: Deloitte 2020 Global Job Architecture
                                                                                                                                                     Practices Survey (preliminary results) 11
2020 Deloitte
4. Developing new career paths/levels using competencies and skills
Alignment between evaluation criteria and competency/skill frameworks

                                                                                                            52%

                                       “Three-quarters plan on better
                                     integrating Grading/Levelling and
                                        Competency Management”

                                                                                                                                                                        27%

                                                                  16%

                         5%

         Yes, each factor is linked to specific   Yes, each grade/level is linked to our   Currently there are no links, but we are        No, there are no links between the
          elements of our competency/skill            competency/skill framework                  planning to introduce it             concepts, and we do not plan to introduce it
                     framework
                                                                                                                                 Source: Deloitte 2020 Global Job Architecture Practices Survey (preliminary results)
2020 Deloitte                                                                                                                                                                                                           12
4. Developing new career paths/levels using competencies and skills
...enables HR to give guidance and direction for management and employees in times of increasing uncertainties

Building a “competency-based” Architecture                              Potential Benefits

    • Prepare organization and its workforce with                        #1
      the right skills for the future                                    Insights on existing skill landscape – create
                                                                         transparency and assess risks
    • Look for new ways to gain detailed insights
      for a better and business oriented workforce
                                                                         #2
      management
                                                                         Assessment of the future skill demand / requirements
                                                                         based business strategies and plans
    • Offer employees targeted career
      opportunities
                                                                         #3
    • Identify important strategic skills and                            Precise recruiting and development plans for closing
      development needs by recognizing skill gaps                        the gaps between skill supply and skill demand
      (knowing what the workforce knows)
                                                                         #4
    • Stress test future business strategies for their
      propensity to be delivered with current or                         Streamlined, better directed talent development
      future work and workforce configurations                           improves skill set – fact based, business aligned and
                                                                         supported by tools

2020 Deloitte                                                                                                                    13
5. IT – Shifting from disruptive to manageable
Using an HCM cloud solution for your Job Architecture design and ongoing governance

        What we have done so far…                                                                                          A solid Job Architecture optimizes the value of your
                Excel-based spreadsheets are used to model the movement of employees                                       technology investment
                across functions, grades and eligibilities                                                                 Consistency & Stability
                • There may be no single master of record                                                                  Alignment of organization's job data to the HCM architecture as
                • Small changes may require extensive checking efforts                                                     a stable and consistent building block for job information
                • Employee “ins and outs” create update challenges
                • Version control is an issue requiring there to be a single primary owner                                 Increased ROI
                • Providing an audit trail of changes is more or less impossible                                           Frontend planning around Job Architecture creates efficiencies,
                                                                                                                           better return on investment and shortens implementation time

                                                                                                                           Enhanced Functionalities
                                                 …and how to benefit from HCM cloud solutions                              Increased reporting functionalities, capabilities, and system
                                                                                                                           performance to maximize workforce planning, compensation
                                                       Cloud based solutions create value primarily by:                    analysis and succession planning
                                                       • Accelerating the process lowering overall project costs and
                                                          lessening the disruptive period                                  Improved Application
                                                       • Involving more people with specific job and employee              Stakeholder usability in areas such as workflow, self service and
                                                          knowledge in the process                                         role based information access
                                                       • Standardization of governance processes (Control access rights)
                                                       • Providing a single and secure site for job and employee data      Added Value
                                                       • Creating a sound foundation for uploading the project results     Strong foundation for various HR concepts that facilitate state of
                                                                                                                           the art talent and reward programs

                     57% of companies have no technical cloud solution in place yet to support job evaluation and Job Architecture practices.
                                                                                                                                         Source: Deloitte 2020 Global Job Architecture Practices Survey (preliminary results)
2020 Deloitte                                                                                                                                                                                                                   14
Questions?

                Peter Devlin          Maximilian Evers
                Partner               Senior Manager
                pdevlin@deloitte.de   maevers@deloitte.de
2020 Deloitte                                               15
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