2014 EMEA Job Levelling Summit

Transcription

1 2014 EMEA Job Levelling Summit Case Study: Rio Tinto Jodi Holt Principle Advisor of Employee Remuneration Rio Tinto

2 Building a Career Framework

3 3 Agenda Rio Tinto Our Company Our Situation Our Solution Lessons Learned Questions and Answers

4 Our Situation

5 5 Pain points driving the need for Job Architecture Disproportionate amount of time; 388 person days year evaluating and peer reviewing roles & time spent by BU 13,000 roles for 25,000 employees Duplication of roles in system creating possible inequities Delays in recruitment Role definitions inconsistent across our various systems therefore no clear way to identify talent across our business Difficulty to reconcile data during transformation programs and to maintain proper data in HRIS

6 6 How did we get here? In 2007 Rio Tinto implemented what was termed the Global Banding Framework with the following goals and objectives: to provide a single, consistent methodology for the evaluation and banding of roles across the Group; to develop a common banding structure across all Rio Tinto Business Units (BUs) and Functions providing a standard language, system and process to support a range of organisational requirements; to act as a basic building block for a range of Human Resources (HR) programmes required to support the business; to provide a methodical framework for regional and local remuneration; too support consistency and transparency within and between Business Units and regions; and to enable efficient global performance and talent management.

7 7 The Global Banding Framework The Framework covers all employees, with two streams, recognising both managerial and functional roles. The initial focus of the framework was on the professional roles (GGS grades 8 14). Executives had been harmonized previously and adoption below the professional level is optional. The Framework is underpinned by a formal job evaluation tool, Towers Watson Global Grading System (GGS) and supported by Global Benchmark roles to ensure consistent application.

8 8 Our challenges Implementation of the Global Banding Framework and the original processes established for the framework were not well understood or followed, resulting in an inefficient process. Our challenges included: Technology Security access to view roles in GGS was limited to a users business unit, resulting in duplicate roles being created. GGS was not linked to our HRIS. No job codes (GGS nor HRIS). No standard role titles (GGS nor HRIS). No alignment of functional areas between various HR processes and HRIS.

9 9 Our challenges (continued) Governance HR lacked an understanding of how the system works and when a role should be evaluated. Larger number of system users ~350 vs. recommended maximum. No formal and consistent training for new users. Benchmark roles were not properly used. Job descriptions Geared toward the individual leading to all roles being unique Too many job bands Difficult to clearly delineate between levels

10 Our solution

11 11 Our solution The Rio Tinto Career Framework a globally consistent and easy to navigate classification of roles, designed with the business to inform, guide and engage both employees and leaders, to effectively develop and manage our workforce. Achieved through: The design of a Job Family Architecture, brought to life in a model for employees and leaders to utilise. Successful embedding within our HR processes and technology. Support from an appropriate change management and communication plan

12 12 Our solution (continued) Job Architecture 16 defined functional areas with 87 defined job families Each functional area has an owner from the business with assistance by subject matter experts who responsible for: Approving the job families and associated definitions. Identifying the jobs in each family and approving the associated role profiles. Standard roles profiles simplified. Number of roles reduced from over 13,000 to 1,000 1,500.

13 13 Our solution (continued) Technology HRIS is being reconfigured to support and align with the new job architecture. Job codes are being introduced, functional area, job family, job title, band will be linked. Governance A new governance model is being developed. Only jobs within the job architecture are available for use in the HRIS. Transparency Role profiles will be published. Band Levels Minor updates made. Decision made not to make major changes.

14 Lessons Learned

15 15 Lessons learned to date Band Levels Ensure proper understanding by decisions makers that the number of levels is a design feature of the overall job architecture, and not a separate project that can be undertaken at a later time. Very emotive topic. Difficult to reduce. Not about pay but clearly defined career progression. Functional Areas / Job Families Difficulty with Leaders in separating organisational structure from functional area (i.e. where the job is performed versus the what the role does). Ongoing desire to change functional areas / job families to reflect the organisational structure.

16 16 Lessons to date Managerial versus Individual Contributor career streams Lack of understanding about the differences between the two streams, and when a job is considered to be in the management stream. A role can have direct reports or manage a project and still be an individual contributor. Transparency of role levels While it was stated up front as an outcome of the project, the discomfort with actually being transparent is causing HR to rethink if they are ready.

17 Questions & Answers

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