Walmart, Wells Fargo, and Deloitte on Job Architecture

5/15/2018

Walmart, Wells Fargo, and Deloitte on Job Architecture

Ryan Miller Director, Talent Architecture

William Navarons Manager, Compensation Design

Lynda Phenix Senior Manager

Sheila C. Sever, CCP Senior Manager

:

Walmart, Wells Fargo, and Deloitte on Job Architecture

If You Build It, They Will Come . . . And Stay!

Technology Talent Management

Risk Excellence Governance | Compliance

Learning and Development

Performance Management

Succession Planning

Workforce Planning

Employee Experience

Rewards

M&A Integration

Talent Acquisition

Career Pathing

JOB ARCHITECTURE

The foundation for a company's critical elements of talent management strategy

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Introductions

Lynda Phenix

Senior Manager

Deloitte Consulting LLP Serves as a strategic partner in a variety of Job Architecture projects covering multiple industry sectors with a recent focus on M&A. She has played a key role in the development of Deloitte Consulting's core job architecture methodology and tools. She was a main driver behind Deloitte Consulting's Global Job Architecture Practices Survey.

William Navarons

Manager, Compensation Design

Wells Fargo Leads the development for company-wide compensation design initiatives covering compensation philosophy, strategy, and program framework. He is currently serving in a leadership role in the planning and design of an updated approach to job architecture. Prior to joining Wells Fargo, he has held significant compensation leadership roles in multiple industry sectors as well as consulting. William has published on various compensation topics within World at Work, the National Association of Stock Plan Professionals (NASPP) and the National Center for Employee Ownership (NCEO). William holds CCP, CBP, and GRP certifications from WorldatWork.

Sheila C. Sever, CCP

Senior Manager

Deloitte Consulting LLP Sheila has 20+ years of consulting and corporate experience working with a wide range of clients. She has published on a variety of topics in WorldatWork Journal and workspan. Today's session marks her fifth Total Rewards conference presentation. She advises clients on optimizing their total rewards package to best attract and retain talent across their organizations.

Ryan Miller

Director, Talent Architecture

Walmart

Ryan is a member of the Global People Division leadership team at Walmart and is currently focused on the redesign of the organization's talent architecture. In this role, he collaborates to develop learning and growth programs that are increasingly digital in nature and in alignment with Walmart's vision of the future of work. He draws from 25 years of Human Resources experience, including international assignments ? most recently as the Head of Talent Development for Walmart for APAC markets. He was also responsible for the development of Top Talent & Executive Development for Next Generation Walmart globally.

Session objectives

The purpose of this session is to fill in the knowledge gap on job architecture practices through sharing Deloitte's proprietary research and discussing the practical application of these findings through a panel discussion with industry leaders who are in the midst of job architecture projects. Today we will:

1

Provide pointers on how to present a case for Job Architecture to your organization: articulating the resulting benefits to talent management,

compensation investments and employee experience

2

Share leading practices in job architecture design, such as design principles, number of job levels, job titling conventions, career pathing, job/role growth

criteria and governance

3

Discuss Job Architecture experiences at Walmart and Wells Fargo through a panel discussion with Human Capital leadership

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Job architecture defined and making the case

Total rewards and the connection to job architecture

The core components of job architecture-- jobs and associated pay values are often the nucleus and common factors upon which human capital programs are built. While job architecture is most commonly the domain of the compensation function, these programs serve as the foundational elements of an organization's talent strategy.

While "compensation owned", it is more than just about pay.

Job architecture is tied to the core elements of

total rewards

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Job architecture defined

Associated with many "labels" including the job catalogue, career framework, job bank, leveling, etc., job architecture is an umbrella that contains the following core Human Capital programs centered around the development, implementation and administration of both the job framework and pay structure:

? Identify number of organizational levels and assignment of jobs to those levels

? Create consistent criteria for entry

? Assess appropriate spans of control (optional)

? Job groups/job families ? Dimensions and factors ? Number of levels ? Desired level of overlap

across Architecture

Pay Grades

? Determine linkages to pay grades

? Design grades to appropriately compensate work

? Develop pay administration processes for managing costs

Job Levels

Job Titles

Global Job Architecture:

? Creates organizational language to consistently define positions globally. It is the foundation for other elements across HR, particularly Rewards, Talent, and work environment

? Provides the foundation for aligning global workforce, programs, rewards, resources, and support systems

? Job progressions--creating meaningful, cross-organizational titles that accurately reflect level and work

? Job titles are typically associated with job codes to be loaded in HCM System

Career Pathing

? Identify function-based job families and classify jobs

? Define career progressions irrespective of reporting relationships

Communications and Change Governance

? Alignment to pay architecture and programs ? Slotting positions (initial and ongoing) ? Management of evaluation criteria ? Governance models and decision rights

The job architecture spectrum and triggers

Data Clean-Up

Job/ Employee Mapping

Focus on Select

Functions/ Groups

Focus on Jobs Only

? All Functions/

Groups

Full DesignJobs and Pay for All Functions/ Groups

The Drivers of Job Architecture

? Human Resources transformation with technology (Human Capital Management System) changes

? Significant shift in business model or strategy including M&A

? Misalignment between company pay and market practices

? Perceived internal and external pay equity concerns

? Inefficient talent management practices

? Proliferation of job titles and lack of clear career framework

? An unexpected or unexplained increase in employee turnover

? Jobs no longer reflect the work that needs to be accomplished to support the business

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Benefits of job architecture

One of the significant roadblocks to embarking on a job architecture project is articulating the value and outcomes of the project. This often begins with a current state assessment, articulating the need, and gaining leadership support for change

Setting clear criteria and expectations for movement through careers

Providing better understanding of career paths through grouping jobs into family groups and families--this enhances visibility to potential opportunities

A single job architecture framework will support talent management through improvements in:

Efficiency

Compensates consistently for like jobs/work internally and externally

Creates governance for administering pay and talent decisions

Provides consistent and efficient market analysis and common basis for compensation programs

Simplification

Supports a HR technology implementation

Supports geographic mobility across the company

Increases accuracy of HR data reporting for human capital planning and forecasting

Engagement

Reduces role ambiguity and clarifies accountability; supports career pathing

Clarifies succession planning and skills gaps

Supports enterprise-wide talent management programs

Decreased hiring timelines

What typically resonates with line management?

Improved internal pay equity ? promotes "fair" pay treatment

Performance and career development

More effectively marketing jobs ? market alignment of

titles

Results of the Deloitte Consulting 2017 global job architecture practices survey

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Deloitte Consulting's Global Job Architecture Practices Survey

The 2017 global job architecture practices survey analyzes the issues, ideas, and solutions of respondents regarding their job architecture practices.

Outdated job architecture

Many organizations are finding, as they continue to evolve organizational models and strategies, that the core job architecture framework is no longer supportive of business needs.

Deloitte invited c-suite, business leaders, human resources, total rewards and talent executives from around the world to participate in the Deloitte Consulting 2017 global job architecture practices survey.

The survey contains the following:

? Job Architecture Strategy/Design Approach

? Job Leveling Practices ? Job Titling Nomenclature/Career Path

Practices ? Job Description Practices ? Rewards Staffing Practices

This is a "Participant Only" survey. These are high level findings that explore a subset of the overall research.

Need for data

Because of the impacts to financial investments, the employee experience and talent management effectiveness, organizations continue to search for market leading practices to inform their redesign efforts. Currently there is very little quantitative market intelligence on this topic.

Survey participants

105 organizations participated in the 2017 global job architecture practices survey. Participants span across all

major industries and range from large Fortune 500 organizations to smaller organizations with less than $5

billion in revenue.

Fortune 500 Membership

30%

Primary Industry

25%

Yes 41%

No 59%

20%

22% 14%

Percent of Respondents

10%

Revenue Mix

50%

41%

41%

40%

0%

30% 20%

18%

10%

0% Less than $5B $5 - 25B

$25B+

10% 8% 5% 5% 4% 4% 3% 2%

Among 105 participating organizations, 41% are members of the Fortune 500; varying in size, survey participants span industry sectors.

Note: Total does not equal 100% due to rounding.

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Staffing the total rewards function

Participants were asked how they manage the compensation function--specifically whether their organization uses an HR Service Center Model--as well as if compensation professionals serve as total rewards ("TR") professionals with responsibilities in both compensation and benefits. Participants were also asked the number of employees that compensation professionals typically support.

Use of HR Service Center

No. of Employees Supported by Compensation Professionals

32%

Do not use HR Service Center

68%

Use HR Service Center

10,000 or More 3,001 to 9,999

11% 18%

2,001 to 3,000

23%

Focus on Compensation vs. Benefits

72%

Responsible for one

28%

Responsible for both

1,000 to 2,000 Less than 1,000

32% 18%

0%

10%

20%

When managing the compensation function, majority (68%) of survey participants use a service center to deliver HR services, while TR professionals generally focus on delivery of compensation

or benefits rather than both. Most compensation professionals (excludes service center staff) support 1,000 - 2,000 employees.

30%

40%

Job architecture program elements

Participants were asked about their current job architecture program elements.

Elements of Current Job Architecture Program

(n=105)

Job titles

90%

Job leveling

80%

Pay structures/ranges/grades

78%

Functions and families

77%

Career pathing

53%

Program governance guidelines and processes

48%

Point factor job evaluation

28%

Other

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Most participants report that the primary components of their job architecture programs include job titling, job leveling, pay structures/ranges/grades, and functions

and families.

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Polling Question

Question: When did your organization last design/redesign/significantly update job architecture? Answer: 1. Undergoing a job architecture project or ................
................

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