0 Organizations Enrolled in Our Global Database, Short- and Long-Term Incentive Design Study, Intern, New Graduate, Pay Administration Study, Sales Incentive Practices and Car Policy Study, Publication: Access Radford's April Publication Today, Platform Enhancements: Peer Group Access Enhancement and Multi-Factor Authentication, Publication: Access Radford's January Publication Today, Platform Enhancements: Pay Inference, Updated Mapping and More, Short- and Long-Term Incentive Plan Design Study, Intern, New Graduate and Pay Administration Study. RADFORD GLOBAL TECHNOLOGY SURVEY The landscape for compensation professionals is shifting rapidly in a truly global economy. Private Company stream 3 0 obj High-level technical employees often referred to as fellows or chief scientists are becoming a common alternative to management roles. To learn more about participating in a Radford survey, pleasecontact our team. Enable the Future of Pay Technical Jobs Continue to Command Hefty Pay Premiums; Here's How Contact Us Streamlined ability to port Aon data into third-party tools. With career development and perceptions of fairness frequently ranked at the top of employee engagement goals for both employees and companies, the most effective job leveling models need to embed an organization's desired culture and evolve beyond simply serving as defensible frameworks for pay equity. The first thing we need to decide is which employees (or incumbents) working elsewhere are good representatives of our specific labor market. Careers. Newsroom Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Let us know how best to reach you and well be in touch shortly. Pay is generally higher (for the executive level) at larger companies, so a peer group of companies that are in the same general size range or perhaps slightly bigger is appropriate. endstream endobj startxref %PDF-1.5 These grades are intermediate steps within a global career level that have their own specific base salary or fixed compensation ranges. Intern, New Graduate and Pay Administration Study The company needed to evaluate and compare its current leveling structures across the business against each other; develop a single consistent approach to leveling jobs; assign grades across the business; and develop a dual career ladder, as too much emphasis was being placed on management hierarchy at the expense of the technical individual contributor career paths. To be motivating, consider setting objectives and targets that arent too aggressive or unattainable, but require reasonable effort to attain. While regional differences in pay levels exist, the global leveling system enables a company to be consistent in its determination of program eligibility by considering the internal equity of the positions in a given grade and then letting market practices dictate actual compensation levels. Sales Compensation endstream endobj startxref Chapter 2: How Much to Pay - Aon Subjective approaches, such as intuition, along with internal and external sources of market value of labor can offer a framework for decision making and may be reasonable to use when hiring temporary help or independent contractors. 2148 0 obj <> endobj 0000001195 00000 n The reality is that a large, reputable survey provider will allow you to complete a much more sophisticated analysis today. To meet the needs of your changing workforce, your pay surveys must offer a robust and reliable database, global coverage, instant data access and superior customer service in a single global source. 0000006838 00000 n In the meantime, if you have any questions, please don't hesitate to contact your survey consultant. This means that job leveling approaches quickly need to evolve beyond simply serving as defensible frameworks for pay equity. ABOUT US Pay Equity Pay Equity If he follows the solid gold line and is promoted in the accountant family, then he has received an in-family promotion. Plus, your team will be able to cut down on research time, have more energy to work on establishing consistent compensation programs, and won't have to scramble for data every time your business enters a new talent market or adds new types of jobs. IBM Samsung The overall fixed compensation range remains the same; however, additional pay ranges now exist within this span. Partners We love that we can access both technology and sales positions with a single vendor. 25 0 obj <> endobj Philips Healthcare While administrative, technical and production roles can still be aligned into consistent global job levels, each of these support functions should have their own market-based pay ranges to reflect their specific values in the local market. To learn more about participating in a Radford survey, please contact our team. <> 0000001697 00000 n Aon plc. Companies have recognized the value of keeping experts focused on what they do best. %%EOF Site Map| Email Preferences | Legal | Privacy Statement | Cookie Notice | Do Not Sell My Data (US ONLY) | Cookie Preferences Peloton These types of energy are used to generate power for residential, commercial, industrial and transportation customers. Newsletter Access to timely and accurate compensation data is the life-breath of all total rewards strategies. Increasingly, human resources and talent leaders at technology and life sciences companies seek job leveling tools that have enough built-in flexibility to handle cultural differences, local and regional regulations, diverse business needs and changing talent requirements. The benchmark job is exactly what it sounds like, a common job held by many that's consistently defined and relatively stable in design and purpose. Companies with an accounting team, for example, will typically have a variety of levels within the function. These promotions usually happen around the time an employee receives a review or a salary increase. Radford Job Leveling Chart Statement | Cookie Notice | Do Not Sell My Data (US How much to pay is definitely a relative term. Figure A: Promotion path of a junior accountant. This . As a compensation professional, your task to define job levels is a critical skill; it creates motivation for your employees to learn new skills and helps them identify career paths. 1 0 obj In this case, the median base salary for a customer service job at a level 3 is 11.3% higher than the same position at a level 4. However, this system is underpinned by job architecture, which is a method of organizing jobs into job codes, job titles and functional areas all before assigning a grade level. Covers activities related to firm-wide, function, area or focus level leadership. RADFORD GLOBAL TECHNOLOGY SURVEY Global Long-Term Incentive (LTI) By Level - You vs. Market Subject: RADFORD GLOBAL TECHNOLOGY SURVEY Global Long-Term Incentive (LTI) By Level - You vs. Market Keywords: RADFORD GLOBAL TECHNOLOGY SURVEY Global Long-Term Incentive (LTI) By Level - You vs. Market Created Date: 7/29/2015 1:30:05 PM In light of this dynamic, over the past several years, our team has observed a steady shift away from highly regimented job leveling models at technology and life sciences companies, specifically point-value based systems. Market Practice Studies Figure A below shows the promotion path of a junior accountant. Life Sciences Sector Struggles to Maintain Consistency for Scientific Job Titles, For an Effective Job Levelling Approach, Follow These Five Steps, 5 Reasons to Revisit Your Job Architecture, Understanding the Impact of Performance Ratings in Differentiating Pay, How Biotech Companies are Scaling their Workforces for High Growth, A Well-Oiled Machine: What High-Performing Companies Are Doing That Youre Not, Voluntary Sales Talent Turnover Finally Slowing Down, New Radford Data Suggests the War for Talent in China Could be Cooling Off, But Just a Little, Turnover Rates for Sales Employees Reach a Five-Year High. Rethink Location Strategy, Articles Survey Services, ANALYTICS The most complete job library in the business Our job library is the industry standard for technology firms. Analytical forms of job evaluation, such as the point-factor approach, continue to dominate the landscape in many European countries due to the regulatory environment, which requires pay equity compliance in collective labor agreements. Covers activities related to scientific research and development of products such as pharmaceuticals, biologics, therapeutics, diagnostics, medical devices, animal health, etc. Salary Increase and Turnover Study Individual job value is based on three pillars starting with job analysis (what is done), job evaluation (how jobs compare), and market pricing (linking company to market). xref The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Contact Us. High-quality data, direct from HR teams %%EOF A consistent leveling structure enables more robust and diverse analytics across sectors, geographies, and jobs. Radford polled some of our largest technology and life sciences clients in 2016 on their approach to salary administration. As a company matures and expands its global footprint, the approach it takes for organizing its workforce will have a lasting cultural and financial impact. Terms of Use However, European companies as a whole are starting to consider different approaches that facilitate more dynamic organizational design with the capacity to adapt pay and talent practices to more readily respond to today's so-called VUCA (Volatile, Uncertain, Complex, Ambiguous) market demands. The business challenges outlined in Figure 1 are even more prominent in the high-growth technology and life sciences sectors, where companies live and die based on their ability to innovate. Spotify Private Companies (all industries), MARKET PRACTICE STUDIES Lower starting pay for new hires can also explain why rates move more slowly overall than you might think. Employee Rewards Coinbase Retail and E-commerce % Performance & Analytics, Contact Us Radford polled some of our largest technology and life sciences clients in 2016 on their approach to salary administration. Radford consultants successfully implemented a job leveling system that helped employees understand the different career opportunities available to them within their function and across the company. ]c\RbKSTQ C''Q6.6QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ - |" Financial Technology C.3 Radford Global Compensation Database Job Catalogue Proprietary and Confidential E6 Executive 6 E5 Executive 5 Examples Chairman, CEO Major Function Leaders, often CXOs, EVPs Description The senior leader(s) of the corporate entity. We also conducted detailed interviews with senior leaders to confirm our understanding of job content, career progression criteria and global level differentiators. In the US, there is a normal distribution, a bell curve that is typical in each job family. In the next section of this paper, we describe how Radford's approach can be customized for companies operating in Asia, Europe and the United States. Radford Global Technology Survey | Radford Product Resource Center - Aon However, driving this type of change has hurdles, and HR leaders need to be aware of the many steps that might be involved in migrating to a globally consistent leveling structure. Xactly IT Staffing At the same time, the same model was employed by a rapidly growing private online gaming company with multiple large offices in the US and a few smaller satellite offices in Asia and Europe, demonstrating the flexibility of this model across different business types and different job types. Employees who have technical or scientific skills are no longer required, or even encouraged, to pursue management roles in an attempt to further their careers if that's not their desired career path or they lack managerial skills. The entire Radford Platform consists of three elements: A dynamic and intuitive portal to access compensation insights quickly and efficiently, A single database containing all survey incumbents across industries and geographies, A unified and highly differentiated job leveling system and job library that creates a common language for all clients. Radford Renewal 2023 - Aon A G+20n9X,R{,A Hw#?CKA#nX> %a]DA:.@`3Z' )[ A great global job leveling program is the foundation for creating a compelling, fair and market-oriented approach to managing your talent for optimal business results. It's important to take these types of differences into consideration when developing global leveling structures. Radford's global leveling approach recognizes this organizational reality by aligning job levels with both the internal value companies place on individual contributor positions relative to managerial positions, as well as the value the market places on each type of job. Media Relations McLagan Data & Analytics Workday Terms of Use ) 0 When an employee assumes greater responsibility while continuing to perform the same basic function, it is recognized as an in-family promotion. What this means for you: One globally consistent input process; One output methodology Global levels can be used to determine a position's bonus eligibility, bonus target and equity grant guidelines. Drive Diversity, Equity and Inclusion Talent Assessment Source: Radford Global Technology Survey The pay premium for technical jobs is highest at entry-level jobs (P1), declines slightly at mid-level career jobs (P3) and then drops even more significantly at the most senior professional jobs we studied (P5). At Radford, our global leveling approach, which is integrated into the global architecture of our surveys, meets these requirements. The primary activity that describes the type of work performed, The specific segment of the business or type of work performed; summarizes the general responsibilities and shared purpose behind performing specific jobs, The most precise definition of purpose for, and actions taken by, employees in order to deliver on the expectations of clients, colleagues, regulators or leaders. Talent Assessment Technology Covers activities related to the acquisition, development, production, publication and distribution of film, television, animation, radio, podcast, web-based video, streaming, broadcast, print media, electronic games and other forms of media. %PDF-1.4 % The Radford Global Technology Survey defines six distinct levels of work for most individual contributor job families. Covers activities related to enabling functions that drive business results. Salaries for mid-level engineers are just 6.5% higher than a year ago and overall salary increases for 2015 are running at 8.5% at the 50thpercentile. For technology and life sciences companies, who live and die based on their ability to innovate, these types of challenges are significant and make it all the more important to employ effective job leveling systems. Rewards Optimization Corporate Governance Press Contacts We also need to be aware of key markets where management talent may be paid a premium over what we typically view as comparable individual contributor positions in a dual career ladder global structure. The Radford Platform in conjunction with the Radford Global Compensation Database and the Radford Network provides human resources and compensation professionals with access to rewards insights covering more companies, employees and countries on a single multi-industry survey platform than any other data provider. 4H,~u7|z}*Wi}RI7g d*2XMXctk";^R <> There is generally a 1-level off relationship in pay, as shown below here in the Management and Professional columns. PDF Radford Global Technology Survey overview DATA Then consider affordability. 0000004763 00000 n Preferences, Calculates rope strength. The maximum pay level for Grade 5b is the same as the maximum pay level for Global Grade 5. Manufacturing Next, decide which group of companies best represents your competitive market for talent. Covers activities related to the acquisition, development, production, publication and distribution of film, television, animation, radio, podcast, web-based video, streaming, broadcast, print media, electronic games and other forms of media. Salary Increase and Turnover Study %PDF-1.7 % When the Radford Global Compensation Database is used to assist recruiters assign an appropriate hiring range, keep records of the job match for subsequent data reporting and analysis. Github A medium-sized global corporate discipline or department Develops, adapts and executes functional or departmental strategy to achieve key business objectives in area of responsibility Decisions. endstream endobj 2016 0 obj <>/Metadata 104 0 R/OpenAction 2017 0 R/PageLabels 97 0 R/PageLayout/SinglePage/Pages 100 0 R/StructTreeRoot 106 0 R/Type/Catalog/ViewerPreferences<>>> endobj 2017 0 obj <> endobj 2018 0 obj <. Solutions Contact Us The company had a large number of employees with PhDs and needed to ensure alignment between scientific, management and business career paths. Stryker However, that's not always the case. As a compensation professional, you will be establishing the rewarding yet affordable ranges of pay and identifying the market value for jobs. Radford Global Technology Survey, we find most companies in Russia haven't dramatically increased salaries for their technical talent over the past year. Newsroom hbbd``b`$;Kqu@BDLKLAV 0 [ Preferences. Severance and Change-in-Control Study, BENEFITS INSIGHTS _P8>w-V%E1~U}nx[M[o$(l7xX:fk}veLhlqNj i{$kT~UjzKj:0/ All rights reserved. Dual career ladders, where managers and individual contributors progress up the ranks in similar organizational levels, are much more common at technology and life sciences companies in the US. Core roles would include engineering, production, supply chain, skill trades. Building or refining job leveling structures to meet the growing and changing demands of your business will result in better communication with your employees, more clearly defined career paths, and salary structures with greater market alignment and internal equity. 0000003556 00000 n For the technology companies, 48% said they have one salary structure that covers most job functions, but have market-based ranges for functions that pay a premium (or a discount) in the market. Media and Gaming 0000002494 00000 n Statement, | Do Not Sell My Data (US Technical Jobs Continue to Command Hefty Pay Premiums; Here's How It also helped alleviate the pressure for scientists to move into management roles as the only way to advance in their careers. Job leveling, when designed correctly, greatly simplifies how global workforces are organized and managed by introducing a common grading language across all employees and functions, while still differentiating for performance and specific market realities. 3 0 obj Product Support This allowed us to combine our draft classification architecture based on market data with specific feedback on corporate goals and culture. Imagine if you were able to create your own peer groups from our over 4,000 participating organizations and run them in customized queries designed by you. With the Radford Network at your side, you'll be able to benchmark pay on-the-fly for thousands of industry-specific jobs, both technical and non-technical in nature, across all manner of geographic and industry lines. At technology and life sciences companies in the US, dual career ladderswhere managers and individual contributors progress up the ranks in similar organizational levelsis now an organizational norm. In general, we find that companies in Germany (and other similarly regulated markets) are attracted to the Radford approach because it is rational, transparent and equitable, while still differentiating for high performers. We can agree when hiring executives, you want to compare pay levels with appropriate firms. Global Job Leveling at Radford: A Tailor-Made Approach for - Aon 0000003198 00000 n This is the process of comparing your company's jobs to the ones offered as benchmarks in the survey. EQc4T=3F+Yipd@/pODGM,5mZsDp? v2}6x=zqjjz};hE/{~]6`7 aVlGkR%tgN jBO]j: FTphDK;QKZa7N{~3;ukjY#QIj4+7,&?v. The Technical/Scientific levels are new and will only be used by life sciences companies. Around the world, more companies are turning to global job leveling systems as a replacement for their legacy methods of grouping similar jobs across various regions and business unitswhether they currently use a points-value system, generic job descriptions or something else. Moving into a new job as a below average paid employee pushes the average pay for that job down, too. Update: We've updated this article to include new information and data. Covers activities related to scientific research and development of products such as pharmaceuticals, biologics, therapeutics, diagnostics, medical devices, animal health, etc. Data shows job level is a great predictor of the level of participation and the likelihood of receiving a bonus. Importantly, most companies that turn to job leveling find the approach to be more transparent, fairer and easier to communicate to employees. For workstudy opportunities, and to apply for financial aid, visit the Radford University's Financial Aid office online. What we do. Analytical Job Evaluation: Value-Adding Business Process or Bureaucratic Relic? Performance & Analytics, Contact Us COMPENSATION CONSULTING All personal information is collected and used in accordance with our privacy statement. For the technology companies, 48% said they have one salary structure that covers most job functions, but have market-based ranges for functions that pay a premium (or a discount) in the market. Companies with more internal job levels than database job levels should approach job matching from the "ends." The chart below illustrates how tweener grades can be developed specifically for Asia within the context of a larger global leveling system. ",#(7),01444'9=82. In the chart above, Global Grade 5 is subdivided into two tweener grades, 5a and 5b, in order to accommodate more frequent performance assessments. Compensation, Private Company Radford's global leveling approach recognizes this organizational reality by aligning job levels with both the internal value companies place on individual contributor positions relative to managerial positions, as well as the value the market places on each type of job. 2022 Aon plc. Benefit SpecSelect Their reliable market data closely aligns with our compensation philosophy, so its a natural fit. Product Support Between efficiency gains in HR and talent acquisition and improvements in employee engagement related to fairer and more consistent compensation decisions great survey data quickly pays for itself. $.' } !1AQa"q2#BR$3br The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. There are 10 individual levels, broken down as: Management: M3, M4, M5 & M6 Professional: P1, P2, P3, P4, P5 & P6 For companies that may not have a comprehensive internal job level framework yet, we offer a simpler, blended level structure that can be used to Benchmark employees against. We're a participant-only survey, meaning there's only one way to access the Radford Network: submit a complete, high-quality data input that passes multiple rounds of quality assurance. We're much more than a data provider Knows a lot about knots. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. This infrastructure is also easier to maintain as a company continues to grow its workforce and geographic reach. Drive Diversity, Equity and Inclusion Top Ten Tools of the Radford Network Box But from the CFO's view, the objective is to measure costs against return on investment. Press Contacts Zero in on the data that matters most to you Technology When designed correctly, job leveling greatly simplifies how global workforces are organized and managed by introducing a common grading language across all employees and functions, while still differentiating for performance and specific market realities. Once promoted, they move to a job where they are no longer the most senior and often receive below-average pay since they are new to that level of responsibility. Figure 2 illustrates how a globally consistent job architecture system, based on career levels, can be aligned to sample global salary range midpoints. Multiple levels in the job family create promotional opportunities for people who grow their skills in one discipline over time. Compensation, Private Company Where this is a factor, separate market-based pay ranges can be created for management and individual contributor positions that still remain in the same global grade for purposes of internal pay equity and global consistency. Entry-level professional jobs (level 1 and 2) don't have a big premium for new hires. Our comprehensive job library spans every business function and includes an extensive collection of jobssomething we call a job module. Our unified methodology leverages a new building block approach to generating job codes that, while a change for clients, will ultimately be more intuitive to use and support accelerated job-matching processes. The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. To take these models a step further, the following case study describes how we can translate the sometimes abstract concepts of job architecture and job leveling into successful systems at large multinational companies: Business Challenge Paypal Covers activities related to enabling functions that drive business results. The Rewards Solutions practice at Aon and other Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. Executive To help combat this, comparing your salaries for technical jobs to the pay at these companies is critical. As Market Realities Change, Radfords Global Job Leveling Model Rises to the Challenge, Accelerate Your Workforce into the Future, Workforce Optimization and Transformation, Poor transparency regarding job requirements and career progression, Inconsistent approach to pay decisions for new hires, promotions and annual increases, Uncertainty about appropriate pay differentiation, particularly for similar roles with comparable skills, Create job descriptions for each job family with career matrices defining progression at each job level both with the job family and laterally across job families or functions, Benchmark market pay for each job and aggregate for similar job families at the same job level into functional pay ranges, Clear communication of job requirements, promotional opportunities and development requirements, Structure that provides guidelines to ensure equal pay for equal or substantially similar work, Consistent, unbiased and market-oriented compensation decisions to attract and retain talent.
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