In this article, we will describe what job enlargement is, review its benefits and drawbacks, explain some best practices, and share a few examples of job enlargement in the digital age that show its relevance in today’s and tomorrow’s world of work.

Contents
What is job enlargement?
What is the objective of job enlargement?
Types of job enlargement
Job enlargement vs. job enrichment
Job enlargement advantages and disadvantages
Job enlargement examples
How to implement job enlargement
FAQ

What is job enlargement?

Job enlargement is expanding the duties of an existing role while maintaining its level within the organization. This means that a person will handle new responsibilities that fall within the scope of their current job title. For example, an employee will now take over the work planning that was formerly done by their manager.

The goal of job enlargement is to enhance employee satisfaction and performance by expanding the variety of tasks and responsibilities within their role. It is a key technique in job redesign, along with job enrichment, job rotation, and job simplification.

Job enlargement was born out of the need to overhaul what the early 1900s wave of job specialization had generated. Job specialization means that employees develop specific skills to work on a narrow set of tasks. The thinking here is that the individual will be highly effective in executing these tasks. Although boring and repetitive, specialized jobs made good business sense at the time due to their increase in output and profit.

One of the most famous examples is the Ford Motor Company. Because of the highly specialized assembly line created at its factories, the company was a leader in the marketplace. As a result, the company was able to offer workers a much higher minimum wage and give them more time off.

Job enlargement was popularized in the 1960s and ’70s as the opposite of specialization job design. During that time, increased attention was on factors that made a job motivational. There was a realization that traditional mass production assembly lines were monotonous and deeply dissatisfying work situations.

Although the concept of job enlargement has been around for decades, it remains entirely relevant. Today’s business climate is filled with fast-paced growth and continual changes in the nature of work. Organizations now expect employees to adapt to new methods and shifting priorities and be flexible in how they do their jobs. A job enlargement model is one way to ensure that added and evolving responsibilities are covered.

What is the objective of job enlargement?

Job enlargement aims to boost employee engagement and organizational effectiveness by broadening the scope of an employee’s role, thereby increasing the variety of skills used and reducing job monotony.

Taking on the challenge of new responsibilities often results in higher job satisfaction and the capacity for more career path options. This strategy not only benefits employees by making their jobs more interesting and promoting their professional growth but also helps organizations build a more skilled and motivated workforce.

Types of job enlargement

There are two main types of job enlargement which are described as horizontal and vertical. Here’s what these mean: 

• Horizontal job enlargement: This involves assigning additional but similar tasks to a role that will keep the job at its current level of responsibility. For instance, expanding a salesperson’s territory to increase the company’s sales opportunities and boost the employee’s commission. Another example is giving an assembly-line worker more parts to install on a product to add variety to their job while consolidating production.

• Vertical job enlargement: This entails adding tasks to a role that will increase an employee’s scope of responsibility and autonomy. For example, authorizing an administrative assistant to propose and maintain the budget for team-building activities or putting a food service worker in charge of training new hires. By augmenting employees’ responsibilities and accountability, they can find more fulfillment and offer a greater contribution to the organization.

Job enlargement vs. job enrichment

Job enlargement is often confused with job enrichment, but they are not the same. Job enlargement involves adding more tasks to an employee’s role to increase the variety of work, while job enrichment involves enhancing a job’s responsibilities to make the work more engaging and meaningful.

This means that job enlargement is one way to execute job enrichment but not all job enrichment activities are also considered job enlargement. 

Here are examples of each to illustrate the difference between the two concepts:

Job enlargement advantages and disadvantages

Advantages

Enlarging highly specialized jobs can lead to a number of advantages for both the employee and the employer, such as the following:

1. Reducing monotony by creating a wider range of activities: In essence, job enlargement is about adding responsibilities to existing roles to combat boredom. Varied activities decrease monotony and make a job more interesting. Instead of doing one highly specialized task all day, employees are more involved from end to end. For instance, taking a single product through multiple production phases or even managing an automated assembly belt.
2. Promoting skill development and career growth: Additional job responsibilities require training and give employees the chance to explore new interests and expand their work experience. The skills and knowledge they acquire equip them to secure more career growth opportunities with the potential to earn higher wages.
3. Inspiring employee engagement and satisfaction: Additional and varied responsibilities can be motivational factors. Employees who are being challenged and learning often experience personal growth and find more fulfillment in their work. They may also develop a sense of loyalty to the organization when they view it as being committed to their development.
4. Improving efficiency and productivity: When employees are trained to handle extra tasks, they become more proficient, flexible, and inventive and can adapt as needs change. They’re able to come up with creative solutions, pick up the slack caused by absences, and pitch in when the workload increases. Job enlargement allows organizations to tap into their existing workforce for new or altered duties and avoid the cost of outsourcing or hiring.
5. Gaining more autonomy, accountability, and responsibility: Even though increasing the sense of autonomy isn’t the primary goal of job enlargement, being responsible for multiple related activities gives employees more freedom over how they do their work. In addition, when they have increased interaction with a single product or service, they become more accountable for product quality and mistakes. This drives them to take ownership of their responsibilities.

Disadvantages

Although job enlargement can certainly benefit employees and the organization, there are some possible drawbacks. HR needs to be aware of the challenges job enlargement poses and be prepared to meet them before deciding whether it’s the right technique for your workforce.

Some disadvantages of job enlargement you should deliberate include the following:

1. Lower efficiency: Job enlargement decreases specialization. When highly specialized workers do one activity all day, every day, they soon learn to do it very quickly. In some cases of job enlargement, adding tasks may hinder efficiency. This is especially true at the onset when employees are learning their new responsibilities. 
2. Lower quality: If workers are stretched beyond their capabilities, output quality can be affected. Also, reducing specialization can affect the level of expertise within your workforce. However, as we’ve already discussed, repeating the same specialized task all day can lead to boredom and a lack of attention to detail. Furthermore, if employees are only responsible for a small part of the product, they don’t have a whole product concept and may not have a sense of ownership and willingness to improve.
3. Job creep: Job creep is a continuous increase in workload as more and more tasks are added to a position. If this isn’t executed well or employees don’t find the new tasks meaningful, job enlargement can make the role feel overwhelming and potentially lead to stress and burnout. This is even more likely to happen if employees are not being recognized or paid more for taking on extra duties.
4. Increased training levels and costs: Because job enlargement involves the adding of tasks and responsibilities that the employee didn’t have before, it often requires an increase in training levels and training costs. In addition, employees need time to overcome the learning curve and reach their optimum productivity.

Since job enlargement has both advantages and disadvantages, organizations must individually assess whether or not it is the right option. An HR business partner or an organizational development specialist can consult with managers on what job redesign strategy the most sense according to the unique circumstances of the job.

Job enlargement examples

Seeing how job enlargement plays out in the real world is a good way to understand it better. Below are three examples of job enlargement in practice: 

1. In a hospital setting

As robotized surgeries increased, surgical procedures were affected. Surgeons began controlling a robot through a console, usually located in the corner of the operating room. When a major U.S. hospital implemented this, they found that having the surgeon away from the operating table hindered communication.

Traditionally, the surgeon dictated the procedure and given instructions. However, with the surgeons physically distanced from the operating table they didn’t have a full overview of what was happening on it and the area nearby. It became necessary for an operating assistant to take over part of the surgeon’s customary role. 

As a result, this assistant was trained in how to communicate with the rest of the team and in the execution of different activities that would otherwise be performed by the surgeon. 

2. In corporate communications

Another job enlargement example comes from the corporate communications team in a large multinational fast-moving consumer goods company. This firm had specialized advisors to manage communication around the implementation of new digital tools. Despite this, the adaptation of tools remained low. 

After looking into it, they discovered that corporate communications did not always align with the purpose of the tool and its functionality because the team was not always fully informed. They resolved this by enlarging the jobs of the communications team. The team was included in the initial conversations and research around the purpose and main functionalities of the tools, as well as user interviews and drafting design criteria. 

The expertise of the communications team proved helpful in this stage. It enabled them to draft a communication strategy earlier that connected with the user problems that the new software tool was solving.

3. For extending social media reach

A multi-location property management company wanted to make better use of social media for marketing purposes and communicating with its apartment buildings’ residents. Instead of hiring a full-time social media director, management selected one willing leasing agent from each location to create/film a few social media posts per week.

This increased the company’s social media presence while customizing content for each building individually. It also provided certain employees with the opportunity to take on an innovative responsibility that allowed them to be creative and develop new, transferable skills.

How to implement job enlargement

Each organization must take its own approach to job enlargement based on its industry, workforce structure, and business needs. While job enlargement may look different to every organization, there are some universal best practices HR can adopt. 

Here are several ways HR can effectively support the job enlargement process: 

• Communicate clearly and involve employees: Employees will be resistant to change that they don’t understand. With regular communication about the purpose of job enlargement and how it will benefit them and their career, employees will be more likely to accept and embrace the concept of taking on more responsibilities. Provide periodic updates, actively involve them in the decision-making process, and address their concerns and questions. When employees feel informed and included, they’re more comfortable giving their buy-in.

• Set employees up for success with thorough preparation and training: Job enlargement typically requires employees to acquire new skills and/or knowledge. Implement comprehensive training and development programs that will equip employees to navigate their expanded tasks and responsibilities effectively. These may include online courses, hands-on simulations, seminars, workshops, or mentoring.

• Take a measured approach to implementation: Introduce job enlargement gradually. Employees need time, support, and resources to get familiar with and adjust to juggling new responsibilities. Add new tasks incrementally, ensuring employees get up to speed without feeling inundated and frustrated. Managers should closely assess employees’ capacity and proficiency levels and provide supportive guidance as necessary.

• Keep the workload balanced: When left unchecked, job enlargement can make a role feel overwhelming. Added tasks must be balanced with existing responsibilities to keep the workload manageable and prevent burnout. The process must allow leeway for altering priorities, redistributing tasks, and supplementing resources.

• Monitor performance and outcomes: Job enlargement initiatives should be evaluated for effectiveness in achieving your goals, whether it’s reducing monotony or productivity. You can reveal the overall impact of job enlargement and identify improvement areas by establishing viable performance evaluation and feedback mechanisms that track employee progress and gather constructive input. Ensure there is flexibility for making necessary adjustments that will maximize employees’ success and satisfaction with the enlarged job roles.

• Recognize and reward employees: Acknowledging and showing employees appreciation for taking on job enlargement requirements goes a long way in keeping them motivated and fostering engagement. Put a reward system in place that salutes effort and showcases employees’ contributions, for instance, public recognition, celebratory events and activities, or gifts and bonuses.

On a final note

Job enlargement may have originated as a remedy for the tediousness of highly specialized assembly lines, but it is still pertinent in today’s digital world. With an increasing number of tasks being automated or digitized, roles will naturally shrink and become more specialized. 

With job enlargement that is well-supported by HR, employees can embrace new responsibilities and become more agile. Once they feel the reward of being challenged and growing their abilities it will reinforce their engagement and willingness to perform at their highest level.

FAQ

The post What Is Job Enlargement? [A Guide + 3 Examples] appeared first on AIHR.

Contents
What is job enrichment?
Job enrichment examples
Job enrichment theory
Advantages of job enrichment
Disadvantages of job enrichment
13 job enrichment techniques
How to implement job enrichment at your organization
Job enrichment vs. job enlargement
FAQ

What is job enrichment?

Job enrichment is the process of adding motivators to existing roles to increase employee satisfaction and motivation, improve work quality, and make jobs more engaging. 

Examples of job enrichment include adding tasks and responsibilities (job enlargement), increasing skill variety, creating autonomy, giving feedback, and making the jobs more meaningful through a job design process.

The job enrichment concept is based on the idea that, due to technological developments and increased job specialization, many jobs have become monotonous and uninspiring. Enriching those jobs is one potential way to solve this issue.

Job enrichment examples

Let’s look at what job enrichment could look like in practice. 

Job enrichment example 1

Caroline works at a contact center. Her role involves, among other things, managing incoming customer service phone calls, managing online chats, and keeping track of cases or issues discussed. She recently started picking up additional tasks by becoming a buddy for new hires via the company’s buddy program, hence developing her mentoring and coaching skills.

Job enrichment example 2 

HR assistant Ahmed fills his days ensuring that the HR department’s operations run smoothly. During the latest one-on-one with his manager, Ahmed discussed his desire for more autonomy. As a result of that discussion, his manager will assign him a project, deadline, and some guidelines from now on and trust that Ahmed will get the job done or reach out when necessary.

Check out our Learning Bite to learn everything you need to know about the Job Enrichment!

Job enrichment theory

To understand where job enrichment came from, we should quickly examine the history books. 

In 1959, Frederick Herzberg published his two-factor theory of motivation. He proposed that some job factors result in employee satisfaction, which, in turn, helps increase retention. These are motivators. Examples include recognition, responsibility, and a sense of achievement. A satisfying job should have sufficient motivators.

In this motivational approach, job enrichment is crucial; jobs are created to satisfy employees and their needs, in other words, to motivate them. This approach gives people autonomy, responsibility, the ability to do a job from start to finish, and performance feedback. Essentially, job enrichment is the process of adding motivators to existing jobs to increase job satisfaction. 

A few decades later, this approach was refined in Hackman and Oldham’s Job Characteristics Model. They proposed that there are certain job characteristics that lead to meaningfulness, motivation, and performance. These are:

• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback

The validity of this model was assessed through a meta-review of nearly 200 studies. The analysis results supported the different job characteristics, although there was some debate about the exact number of dimensions. Psychological states were confirmed as mediators between job characteristics and outcomes (Fried & Ferris, 1987).

Advantages of job enrichment

As we’ve already discussed, the main goal of job enrichment is to motivate employees, increase their satisfaction, and improve their work quality.

Enriching jobs has numerous benefits for both employees and the organization, including: 

• More motivation and better performance: When employers strive to give their people more critical tasks and responsibilities, this can boost their motivation and improve their performance. 
• An increased sense of fulfillment: If an employee accomplishes a challenging task they once thought was too difficult for them, this will likely boost their confidence and give them a sense of fulfillment and satisfaction.  
• An opportunity to learn new skills: For employees, job enrichment often means doing something they are unfamiliar with and don’t necessarily have the right skills for (yet). As such, it allows them to broaden their skill set. 
• A better employee experience: When job enrichment is successful, it leads to more satisfied and happier employees, which, by extension, creates a more pleasant work environment and a better overall employee experience.
• Lower turnover: All the benefits mentioned above naturally lead to less employee absence and lower turnover rates.

Interestingly, job enrichment does not necessarily lead to greater productivity. Although employees experience the work as more meaningful, they don’t necessarily generate more output.

Disadvantages of job enrichment

There are also some potential drawbacks to the implementation of job enrichment in an organization, including:

• Potential for overload and stress: Adding more responsibilities can overwhelm some employees, leading to decreased satisfaction, stress, and potential burnout if not managed properly. Interestingly, this has not been found in the literature. Instead, increasing intensity and scope are experienced as a motivational variable. However, the exception is employees with low growth needs or low knowledge and skills. For these employees, job enrichment was more likely to produce frustration than satisfaction (Cummings & Worley, 2009). 
• Mismatch with employee preferences: Not all employees desire the increased responsibility or complexity of job enrichment; they prefer stability and predictability in their roles.
• Barriers to implementation: Organizational systems, such as technical HR, control, and supervisory systems, can limit the degree to which jobs can be enriched. Negotiations with labor unions and changes to job descriptions may be required, complicating the process.
• Increased training needs and costs: Training may be required to enable employees to handle their new responsibilities effectively, as they will probably not have the right skills to take on those new tasks right away. This can be time-consuming and temporarily decrease their productivity.

13 job enrichment techniques

Job enrichment interventions aim to increase skill variety, task significance, broadening roles, and increasing autonomy. Here are some interventions that you can implement at your organization:

1. Creating natural work units: The formation of natural work units is about grouping interrelated tasks. This creates ownership of the tasks and allows the employee to see the result of their work, leading to an increase in ownership, task identity, and perceived task significance.  

An example of interrelated tasks could be managing a project from inception to completion, where an employee is responsible for planning, executing, monitoring, and closing the project. This could involve coordinating with various departments, tracking progress, and ensuring deliverables meet the required standards.

2. Combining tasks: You can combine tasks that are now divided across multiple jobs to create broader, more rewarding jobs. Cummings & Worley mention Corning Glass Works, a laboratory hotplate assembling plant. Separate tasks were combined so that each operator would completely assemble, inspect, and ship a hotplate. 

This meant that each assembler could identify with and self-inspect a finished product, leading to greater task significance, autonomy, and feedback. This resulted in an increase in productivity of 84%, a drop in controllable rejects from 23 to less than 1%, and a drop in absenteeism from 8 to less than 1%.   

3. Quality circles: Quality circles, or Kaizen groups, are groups of employees who regularly meet to consider ways of resolving problems and improving productivity in their organization. These small groups increase participatory management, leading to more task identity and autonomy. 

4. Suggestion programs: In line with quality circles, Employee Suggestion Programs (ESPs) encourage employees to offer suggestions that improve the performance and quality of their work. Usually, HR oversees the ESP. Sometimes, cash awards are given to employees whose ideas are implemented or result in savings or revenue. 

5. Job rotation: Job rotation is the practice of laterally moving people between jobs in an organization. It is a technique that is used to boost employee learning and motivation. For example, an employee can work in the marketing department for six months and then rotate to the sales department to gain broader organizational experience and develop new skills.  

Job rotation can be an excellent way for employees to develop new skills, learn from each other, build camaraderie, and perhaps even consider a (slightly) different role in the organization.  

6. Feedback: The simple act of giving regular feedback may be the easiest job enrichment intervention of all. 360-degree feedback from one’s direct manager and peers, for example, helps the employee grow and develop and is a key way to enrich one’s job. 

7. Autonomy: Autonomy is another critical part of a job’s motivating potential. Any interventions that can increase autonomy in the workplace will increase this potential. 

Examples include employees being able to determine their working hours, making certain decisions independently, and people being involved in setting their own goals and KPIs.  

8. Purpose: Purpose as a job enrichment intervention is about connecting employees’ daily tasks and responsibilities to the broader mission and goals of the organization.

When employees understand how their work contributes to the overall success and impact of the organization, they are more likely to find their roles meaningful and fulfilling. This sense of purpose can significantly enhance motivation, job satisfaction, and engagement.

9. Establish client relationships: Another job enrichment intervention is to establish client relationships. Workers have little to no contact with or knowledge of the ultimate user when jobs are split up. By establishing client relationships, task identity and task significance increase. 

Cummings & Worley recommend three steps: 

1. Identify the client
2. Ensure that the contact between the employee and the client is as direct as possible
3. The criteria by which the client judges the product or service should be clear, and their judgement should be shared with the employee. 

10. Vertical loading: Vertical loading refers to giving employees additional responsibilities and tasks traditionally reserved for higher-level positions, thus significantly increasing autonomy. It may be the most crucial job enrichment and design principle.

Vertical loading is often lost when a mistake is made. At this point, a supervisor removes the responsibility, leading to lower vertical loading and a decrease in autonomy. However, rather than immediately removing someone’s responsibility, it could be more valuable to discuss what happened and how to avoid this in the future.  

11. Horizontal loading: Horizontal loading is also referred to as job enlargement. Job enlargement is increasing job duties by extending the range of job responsibilities. Contrary to vertical loading, where the degree of control is increased, job enlargement focuses on simply adding duties to the job without necessarily increasing autonomy or control.  

Job enlargement thus enables an employee to do more, have a wider range of activities, increase their skill variety, and improve their earning capacity.

An example is an office secretary who now also welcomes occasional guests who visit the office. This gives her a welcome break from her daily work, as she likes to make people feel at home and chat with new people, which boosts her motivation.

12. Running a job crafting trial: Job crafting refers to people proactively making small changes to their jobs. They take the job they already have and make changes that are improvements to them and make it a better fit for them as an individual. By doing so, they are more satisfied, more engaged in what they’re doing, and more likely to perform better.

Strictly speaking, job crafting is not a job enrichment intervention because it is employee-driven, while job enrichment is top-down. However, as with any new HR initiative, chances of success are probably much higher if the organization and its people work together to co-create. 

So, it might be worth testing the concept and running a job crafting trial, as this might be the future, more modern version of job enrichment. 

13. Creating an employee recognition program: This is not a traditional job enrichment intervention, either. However, as we saw earlier, Frederick Herzberg had already identified recognition as one of the key motivators for job satisfaction back in 1959.

An effective employee recognition program can be a great way for a company to show appreciation for people’s achievements and positive actions. This creates, among other things, a more positive work environment and more satisfied and productive employees and has, therefore, a ‘job enriching effect.’

How to implement job enrichment at your organization

Let’s take a look at the essential elements for successfully implementing job enrichment interventions at your organization:

Involve employees in the process

As we’ve seen earlier, job enrichment might not be for everyone. Some employees will be happy with their role as it is, and others will prefer to tailor their role more to their liking using a technique like job crafting.

It’s crucial to recognize and respect these individual preferences to maintain overall job satisfaction. By offering a range of options for job design, organizations can cater to diverse needs and ensure that all employees feel valued and engaged.

Conduct a Job Diagnostic Survey (JDS)

The Job Diagnostic Survey (JDS) is a framework for calculating a motivating potential score. It assumes that motivation consists of meaningfulness, autonomy, and feedback. 

A score is identified and calculated for each of these factors per job. The figure below illustrates the motivating potential score as a function of these three states. 

In the figure, two jobs are compared. Job A scores around 6.5 on meaningfulness (the average of skill variety, task identity, which is the extent to which a job is done from start to finish, and task significance), 6.4 on autonomy, and 6.3 on feedback, making the motivating potential score 6.5*6.4*6.3 ≈ 260. Job B scores significantly lower, bringing its motivating potential score to less than 40.  

Leverage design thinking to refine job roles

Apply design thinking principles to the job enrichment process. This involves empathizing with employees to understand their needs and challenges, defining areas for improvement, ideating potential enhancements, prototyping new job elements, and testing these changes in a controlled environment.

Design thinking focuses on the human aspect of work and, as such, can help create more engaging and fulfilling job roles. 

Provide adequate training and resources

If people are willing to take on additional tasks and responsibilities, the employer must ensure they are well-equipped to take on this new challenge.
This often means offering them adequate training and resources to get the job done. As we’ve seen earlier, a lack of training can backfire and lead to frustration and dissatisfaction.

Monitor and support

Once you’ve implemented one or more job enrichment interventions, it’s important to monitor them. How are employees experiencing their additional tasks? What goes well, and what can be improved?  

Managers usually play a big part in this as they are the ones who are in contact with their team members on a daily (or almost daily) basis. 

Job enrichment vs. job enlargement

Job enrichment and job enlargement are two distinct strategies of job design, each with its unique approach to enhancing employee satisfaction.

Job enrichment focuses on adding motivational dimensions to a job, aiming to make it more fulfilling and engaging for the employee. This approach seeks to increase job satisfaction by enhancing the meaningfulness, autonomy, and feedback associated with the job roles. The goal is to improve the intrinsic value of the job to the employee, making it a more rewarding experience.

On the other hand, job enlargement is characterized by increasing the number of tasks an employee performs. It broadens the scope of their job horizontally without necessarily increasing their control or responsibility over those tasks.

The primary aim of job enlargement is to combat job dissatisfaction and monotony by providing a greater variety of activities within the same level of an existing role. While it increases the task variety an employee experiences, it does not inherently make the job more motivating from a psychological perspective.

An example is a warehouse worker who is typically responsible for packing and shipping orders but now also takes on inventory management tasks. This additional responsibility allows them to learn new skills related to stock tracking and inventory control, which they find intellectually stimulating and rewarding.

However, the effects of job enlargement diminish over time. Initially, the warehouse worker enjoys the new challenge, but eventually, they might find the additional tasks overwhelming and feel that their workload has become unmanageable, leading to increased stress and decreased job satisfaction as the excitement of the new responsibilities diminishes.

Job enlargement can be seen as a way to keep employees engaged by preventing repetitive work patterns, but it may not contribute to job satisfaction and motivation in the same depth as job enrichment does.

The continual increase of job enlargement is referred to as job creep. This happens when an employee gets an ever-increasing task load, leading to an unmanageable workload.

Both job enrichment and job enlargement are crucial strategies in organizational development efforts. While they both enhance employee engagement and performance, they operate on different aspects of job design to achieve these outcomes.

Wrapping up

Job enrichment can be a great way to keep people’s jobs engaging and retain employees. However, not everyone is open to having their job enriched. The interventions listed in this article can be a good place to start if you want to implement job enrichment interventions in your organization as long as you involve your employees.

FAQ

The post Job Enrichment: A Practical Guide + 13 Examples appeared first on AIHR.

The 9/80 schedule offers a fresh take on the work week by lengthening weekends. This working model is gaining popularity as a strategy to improve the ultimate business trifecta: Productivity, employee satisfaction, and work-life balance.

Contents
What is a 9/80 schedule?
How does a 9/80 schedule work?
9/80 schedule versus 4-day workweek
What are the benefits and drawbacks of a 9/80 schedule?
What does a 9/80 schedule look like?
How HR can help implement the 9/80 schedule
Companies that use the 9/80 work schedule

What is a 9/80 schedule?

The 9/80 schedule upends the typical 9-5 work schedule of eight hours a day, five days a week, followed by two days off on weekends. Instead, it compresses workweeks, providing more free time for the same wages. Under a 9/80 schedule, employees work slightly longer days in exchange for every other Friday off.

9/80 schedules are calculated in two-week blocks. In week one, employees work a 9-hour day from Monday to Thursday and an 8-hour day on Fridays. In week two, they work nine hours from Monday to Thursday and get Fridays off. And then the routine repeats. This means they get two 3-day weekends every month, on average.

The backstory of how work scheduling come about is an interesting one. The automotive tycoon and manufacturing pioneer Henry Ford established the 40-hour work week back in 1926. It then became the legally mandated work week in the United States in 1940.

Since then, flexible and compressed schedules have been recognized under the banner of ‘alternative work schedules’ and are gaining popularity as a way to boost work-life balance without sacrificing productivity. These include the 9/80 and 4/10 schedules, also known as the 4-day work week.

How does a 9/80 schedule work?

A 9/80 schedule is a work schedule that condenses the standard 80 hours worked in two weeks into nine days instead of 10. This means staff get every other Friday off, all while keeping total work hours the same.

If you’re considering introducing a 9/80 schedule, here’s how HR can be the ultimate advocate for this new approach:

1. Be the communication champion: Clearly explain the new schedule to everyone. This includes details on the format, how payroll handles the 9/80 schedule, and the benefit of extra days off.
2. Help with scheduling: Support managers and employees in adjusting to their new workloads and ensure coverage is in place during the additional days off. Think of it as a scheduling puzzle you get to solve – and happy employees are your reward.
3. Provide guidance on maintaining productivity: Offer tips and resources on managing energy and staying focused during the longer 9-hour workdays.

9/80 schedule versus 4-day workweek: Which is better?

Both the 9/80 schedule and 4-day workweek aim to improve work-life balance by compressing more work hours into fewer days. But they achieve it in different ways:

• 9/80 schedule: Employees work for nine days (eight 9-hour days and one 8-hour day) over two weeks, totaling 80 hours. This translates into an extra day off every other week for extra recharge time.
• 4-day work week: Here, employees power through a compressed schedule, typically working four 10-hour days for a total of 40 hours. The reward? A three-day weekend every week, boosting morale and, hopefully, creativity.

The key is picking the option that best suits your company’s needs and your team’s preferences. For instance, a marketing agency might find the 4-day week perfect for their creative minds. It allows for focused work sprints followed by extended downtime to refresh and come back with even better ideas.

On the other hand, a manufacturing plant with strict production targets might benefit more from the 9/80 schedule — allowing it to maintain efficiency while still offering occasional long breaks to avoid burnout.

While the 4-day workweek is less complex from a scheduling and payroll perspective, both options can be successful if implemented carefully.

What are the benefits and drawbacks of a 9/80 schedule?

A 9/80 work schedule offers employers the potential benefits of greater productivity and employee satisfaction, but it’s not without its drawbacks. Let’s explore some pros and cons.

The pros:

• Enhanced productivity: We all struggle with distractions in our ‘always-on’ world. Longer, uninterrupted stretches in a 9/80 schedule could help employees focus on deep work tasks, potentially leading to more complex projects getting finished faster and overall productivity gains.
• Improved employee retention: Offering a work-life balance perk like a 9/80 schedule can make your company stand out. This can be a game-changer when it comes to attracting top talent and keeping your existing team happy by providing the freedom that comes with extra personal time.
• Reduced absenteeism and tardiness: This recent Gallup study confirms that having happy, engaged employees translates into an 81% reduction in absenteeism and a 14% increase in productivity. The 9/80 schedule, with its three-day weekends every other week, could contribute to a more positive and reliable workforce. Think of it as an investment in employee wellbeing and productivity.
• Improved employee work-life balance: For employees who handle 9-hour days with ease, the benefit of a 9/80 schedule lies in the extra day off. Reduced stress and a better work-life balance can lead to a happier, more engaged team, ultimately leading to higher outputs and retention prospects.
• Environmental benefits: Think about all that commuting avoided with an extra day off every other week. A 9/80 schedule can contribute to a smaller carbon footprint, which is a major plus for companies looking to build an environmentally conscious employer brand to attract top candidates.

The cons:

• Scheduling challenges: Let’s face it; a 9/80 schedule won’t suit every type of business. Coordinating meetings and ensuring team coverage, particularly in customer-facing roles, can become a juggling act, potentially disrupting workflows with employees having different days off every other week.
• Limited flexibility during workweeks: Employees might have less wiggle room during their nine-day stretches to handle appointments and personal needs. This could lead to some frustration.
• Increased risk of burnout: Not everyone thrives on longer workdays. While some might see a productivity boost, others may struggle with maintaining stamina and experience fatigue or burnout. This could ultimately cancel the initial productivity benefits and decrease overall morale and performance.
• Payroll and overtime complexity: The non-standard nature of a 9/80 schedule can be extremely challenging, especially with overtime and leave calculations. Be prepared to invest in new software or resources to ensure your compensation, overtime, and leave figures are accurate.

What does a 9/80 schedule look like?

Here’s a 9/80 schedule example:

Employees typically work four longer days from Monday to Thursday, nine hours each, followed by an 8-hour stint on Friday in the first week. Then, they power through four more 9-hour days in the second week but get the Friday off to recharge. And so, the two-week routine repeats itself.

9/80 schedule example

This is just a sample schedule. Your 9/80 schedule can be tailored to your specific business needs. For instance, the extra day off could fall on a different weekday, such as a Monday, to meet the needs of your company or team.

How HR can help implement the 9/80 schedule

A 9/80 work schedule can be a win-win for both your company and employees, but let’s be honest, not everyone will immediately take to a switch-up in routine.

Here’s how HR can ensure a smooth transition to a 9/80 schedule and prepare employees for the change:

1. Test it out first

Before diving headfirst into a company-wide launch, consider suggesting a pilot program for the 9/80 schedule. This lets you test the waters with a small, representative group of employees. It’s a great way to iron out any logistical kinks, identify potential scheduling challenges, gauge employee adoption, and track productivity metrics. This will enable HR to refine the program and ensure a smoother, more successful launch for everyone.

2. Cater for leave and payroll

Non-standard workweeks can lead to complications in your leave and payroll processes. Before launching a 9/80 program, make sure you have clear policies in place. This includes figuring out how sick leave and vacation will work — for instance, will it be based on 8-hour or 9-hour days? Also, check if your payroll system can handle the 9/80 structure.

3. Work on workload management

Partner with managers to ensure workloads are adjusted for the new schedule. This might mean helping them prioritize tasks, delegate effectively, and even build in some buffer time for breaks. By working together, you can help everyone feel supported and productive during their longer workdays.

4. Monitor for burnout

Long weeks can zap employee energy. HR can help by offering wellbeing resources. Think stress management workshops, time management tips, and resources to help them maintain a healthy work-life balance.

5. Set up team training

Before you pilot your new work schedule, develop brief training programs to educate managers on effectively scheduling their teams with the 9/80 model and provide pointers on addressing common employee concerns. Meanwhile, employees can be trained on time management strategies for longer workdays.

6. Build trust with open comms

Encourage employees to ask questions and share concerns before things get going. Stay receptive to feedback throughout the process — it’s the best way to refine a 9/80 work schedule program and make sure it works for everyone. By keeping this open dialogue going, you’ll build trust and get your team on board.

7. Be flexible

Consider offering some flexibility within your 9/80 structure. This could involve letting employees choose their ‘off’ Friday or allowing occasional adjustments to the schedule to accommodate personal needs. A little flexibility will go a long way in boosting morale and keeping your team happy.

8. Track and adapt

Throughout the pilot program and beyond, keep an eye on key metrics like productivity, absenteeism, and employee satisfaction to gauge the effectiveness of your 9/80 schedule – and be prepared to make adjustments as needed for maximum benefit.

HR tip

Check the pulse of your team with ‘stay’ interviews

Don’t wait for problems to surface. Be proactive about scheduling ‘stay’ interviews with employees before and during your 9/80 flex work schedule rollout. These one-on-one chats are a great way to get a feel for employee sentiment, preferences, and any potential concerns. By keeping the conversation flowing, you can proactively address issues and tailor your 9-hour workday programs to meet employee needs better.

Companies that use the 9/80 work schedule

1. Chevron

The global energy giant Chevron offers flexible work schedules, including the 9/80 schedules and 4/10 schedules (where employees work 10-hour days four days a week with one extra day off every week). Based on Chevron’s Glassdoor reviews, its 9/80 schedule is a hit with staff.

Learnings for HR: 

• Chevron offers its team the benefit of selecting one of two non-traditional work schedules to boost work-life balance. 
• The company does not allow off days to be banked and discourages the exchange of scheduled days off with scheduled days of work.

2. Shell

Long before COVID and the rise in the popularity of telecommuting and new flexible ways of working, Shell was offering alternative work schedules. This included the compressed 9/80 working week.

Learnings for HR:

• In addition to an ‘every other Friday off schedule,’ Shell also provides its team with flexible start and finish times.

3. Lockheed Martin

Defense contractor Lockheed Martin also offers the 9/80 schedule, providing its staff with the benefit of every other Friday off.

Learnings for HR:

• Lockheed Martin has leveraged its 9/80 scheduling to build its employer brand by publicizing the benefits of work-life balance as experienced by staff members in a video posted to its social media platforms.

The bottom line

The 9/80 work schedule can be a win-win for businesses and employees, but it has drawbacks. Piloting the program with a smaller team is a smart way to gauge its impact on your workforce and helps HR to smooth out scheduling, payroll, and other challenges.

Ultimately, the success of any 9/80 schedule relies on striking the right balance between maintaining productivity and employee satisfaction.

The post What Is a 9/80 Schedule? Your (2024) Explainer Guide appeared first on AIHR.

A WeSpire study revealed that Gen Z workers were the first to prioritize purpose over salary. They must see the connection between their actions and the broader social impact. 75% of respondents surveyed believed that work should have a greater meaning than just bringing home the bacon. They are looking for positive, purposeful, and significant roles. 

Contents
What is a purpose statement?
The role of HR in developing a company purpose statement
How to write a purpose statement
5 actionable steps for HR when crafting a purpose statement
Sample company purpose statement
21 company purpose statement examples

What is a purpose statement? 

Purpose statements are the core beliefs guiding the organization’s decision-making and culture. It is a powerful tool for attracting and retaining talent. Candidates are drawn to companies that stand for something bigger than themselves.

A strong purpose statement resonates with potential employees, which helps in creating a robust workforce. It also helps build customer loyalty. Customers support brands that share their values. A compelling purpose statement can foster loyalty with customers who trust companies that align with their beliefs. 

Company vs. personal purpose statements

Personal purpose statements

• A personal purpose statement is your internal compass
• More subjective and reflects the unique motivations and aspirations of a person. 
• Mainly written for yourself, explaining your life goals and motivations.

Company purpose statements

• A company purpose statement is the guiding principle of the entire organization. 
• Broader and consider the impact on a large scale, like solving environmental problems or promoting social justice. 
• Targeted at employees, customers, and investors to inspire and build trust with stakeholders.

Purpose statement vs. mission statement: The difference

The role of HR in developing a company purpose statement 

HR forges a strong connection between employees, leadership, and the company’s purpose, ensuring it drives the organization’s success.

Here’s how Human Resources plays a role in developing the organization’s purpose statement: 

1. Aligning employee and company motivations and aspirations: HR interacts with employees. Through staff surveys and meetings, they gather insights into their motivations and aspirations and how these align with the company’s potential purpose. 
2. Aligning company culture and purpose: HR ensures that the purpose statement reflects the company’s values and how it resonates with the culture. 
3. Promoting holistic insights across the organization: HR can organize discussions with staff from different ranks and departments, customers, partners, and other stakeholders to gain a holistic view of the company’s purpose.
4. Communicating the organization’s purpose: HR plays a vital role in communicating the company’s purpose to the employees. This ensures that everyone understands how their work contributes to the company’s bigger purpose, fostering employee engagement.
5. The purpose statement guides policy and initiative development: HR can use the company’s purpose to guide policies, programs, and initiatives. 
6. Creating attractive talent acquisition strategies: A clear purpose statement can be a powerful tool in attracting talent who share the employer’s values and aspirations. HR can use the purpose statement when creating recruitment and employer branding strategies. 

How to write a purpose statement

To create a purpose statement that truly reflects your organization, consider the following elements: 

Values

These are the fundamental beliefs that shape your company’s culture. They influence the way employees work together and decide. Think about how they shape your organization’s identity and purpose and ensure they are reflected in your mission statement. 

For instance, if collaboration and innovation are your company’s core principles, your purpose statement should match these values and communicate how they drive your organization’s purpose.

Stakeholders

These are the people and groups with a significant interest in your business, such as your staff, clients, shareholders, vendors, and local communities. Consider their perspectives, needs, and expectations to ensure alignment when formulating your purpose statement. 

For example, a statement highlighting customer satisfaction and social responsibility will help build stronger relationships with customers and communities, ultimately nurturing trust and loyalty.

Long-term goals

Your purpose statement should align with your company’s goals and aspirations. Explain how your goals coincide with your anticipated results, impact, and legacy. 

For instance, if you desire to become a global leader in sustainability technology, your purpose statement should highlight your commitment to sustainability, innovation, and global impact. 

Impact

Consider your organization’s financial success and the wider societal and environmental effects it wants to achieve. Recognize important social, environmental, and economic issues and explain how your goals aim to tackle them. 

For example, a purpose statement for a healthcare organization may emphasize advancing medical research to cure cancer, focusing on its broader societal impact beyond giving healthcare services.

Authenticity

Your purpose statement must be sincere, transparent, and aligned with the organization’s values, culture, and actions. It should accurately represent the organization’s leaders and employees’ true intentions and beliefs. 

When creating a purpose statement, it’s important to avoid generic statements. Being authentic builds credibility with stakeholders, improving engagement and commitment to the organization’s purpose.

5 actionable steps for HR when crafting a purpose statement

1. Build a team and collaborate

Crafting a company’s purpose statement is a team effort that should involve different groups of stakeholders. So, it’s imperative to build a cross-functional team to brainstorm ideas. Encourage open dialogues and active participation from staff of all levels. Assemble a representative individual or team from various departments, e.g., Sales, Marketing, Operations, Finance, IT, etc. 

HR can employ various techniques to facilitate collaboration, such as design thinking workshops, brainstorming sessions, or virtual idea-sharing platforms. 

2. Research and analyze

Survey or interview employees, customers, potential suppliers, and community members. Ask questions about understanding the company culture and mission and identifying impact and contributions: 

• What values do you believe are essential to our company?
• Which values do you think define our company culture the most?
• What do you think is the primary purpose of our organization?
• In what ways do you believe our company contributes to the wellbeing of our customers, communities, and stakeholders?
• How do you envision our company making a difference in the future?
• Where do you see our company in the next 5–10 years?
• What are your aspirations for the future of our organization?

By gathering and analyzing this data, HR gains valuable insights to inform the development of a purpose statement that resonates with stakeholders and aligns with market trends.

HR tip

You can also analyze industry trends and competitor purpose statements to inspire your own and consider how yours differs.

3. Crafting the purpose statement 

Keep your statement concise and clear. It should focus on the organization’s reason for existence and ensure it aligns with its mission, values, and strategic objectives. It should also authentically reflect the organization’s values and resonate with internal and external stakeholders.

Based on your analysis and research, you may have many complex ideas, so HR professionals must simplify them with simple and impactful language. Use storytelling techniques to make your purpose statement engaging and memorable. 

HR tip

Aim for a short and clear company purpose statement. Ideally, it should be around 1–2 sentences that are easy to understand and remember. 
Avoid jargon and complex sentences. 

4. Ask for feedback and finalize your purpose statement 

Share the draft with the team and broader stakeholders. Solicit feedback from the employees, managers, customers, and other stakeholders. This will identify gaps and clarify any misunderstandings. It will also confirm that the purpose statement is inclusive and relevant to all stakeholders. 

Based on their feedback, refine your statement to ensure clarity, conciseness, and inspiration. Remember to have the company’s leadership team review and approve it. 

5. Create a communication plan

Once finalized, develop a comprehensive communication plan to roll out the purpose statement internally and externally effectively. Present the statement to employees via town hall meetings, intranet announcements, and integration into training and onboarding materials.

Externally, work with marketing to integrate the purpose statement into your company website, marketing materials, and social media presence.

Sample company purpose statement

“To empower individuals and communities to thrive by providing innovative solutions and exceptional service, guided by our commitment to integrity, diversity, and sustainability.”

In this example, the purpose statement articulates the organization’s commitment to empowerment, innovation, and service excellence. It emphasizes integrity, diversity, and sustainability values, reflecting the organization’s ethical stance and long-term vision for positive impact.

21 company purpose statement examples 

1. Intel: We create world-changing technology that improves the life of every person on the planet.
2. Boston Consulting Group: Unlocking the potential of those who advance the world
3. Novartis: Reimagine medicine to improve and extend people’s lives 
4. Unilever: Make sustainable living commonplace 
5. Walmart: We aim to build a better world — helping people live better and renew the planet while building thriving, resilient communities. For us, this means working to create opportunity, make a more sustainable future, advance diversity, equity, and inclusion, and bring communities closer together.
6. Pfizer: Deliver breakthroughs that change patients’ lives. R&D is at the heart of fulfilling Pfizer’s purpose as we work to translate advanced science and technologies into the therapies that matter most.
7. McDonald’s: Feed and foster communities
8. Goldman Sachs: We aspire to be the world’s most exceptional financial institution, united by our shared values of partnership, client service, integrity, and excellence.
9. Coca-Cola: To refresh the world and make a difference.
10. Vodafone: To connect for a better future
11. Sony: Fill the world with emotion through the power of creativity and technology 
12. United Airlines: Connecting People. Uniting the World” drives our decision-making, supported by our core values – Safety, Caring, Dependability, and Efficiency. In action, that means doing the right thing for our planet, our passengers, and our people.
13. Mondelez: We empower people to snack right
14. DHL: Connecting people, improving lives 
15. Ford: To help build a better world, where every person is free to move and pursue their dreams.
16. Nike: Move the world forward through the power of sport
17. HSBC: Opening up a world of opportunity. We’re here to use our unique expertise, capabilities, breadth and perspectives to open up new kinds of opportunity for our customers. We’re bringing together the people, ideas, and capital that nurture progress and growth, helping to create a better world – for our customers, our people, our investors, our communities, and the planet we all share.
18. De Beers Group: Make life brilliant 
19. Mckinsey and Company: To help create positive, enduring change in the world.
20. Mastercard: Connecting Everyone to Priceless Possibilities
21. Visa: To uplift everyone, everywhere by being the best way to pay and be paid

To sum up

Writing your company’s purpose statement is an investment in your organization’s future. It serves as a guiding light, attracting talent who share your vision and inspiring employees to bring their best selves to work every day.

A clear, concise statement that captures your “why” will resonate with your target audience, building trust and loyalty. Remember, your purpose statement is a living document. As your company grows and evolves, review and refine it to ensure it continues to reflect your core values and the positive impact you strive to make in the world.

The post How To Write a Company Purpose Statement (+ 21 Real Company Examples) appeared first on AIHR.

Contents
What is a work-from-home policy?
Why have a work-from-home policy
What to include in your work-from-home policy
Work-from-home policy examples
Work-from-home policy template
14 HR best practices when developing a work-from-home policy

Download our free work-from-home-policy template in Word:

What is a work-from-home (WFH) policy?

Welcome to the future of the (hybrid) office. According to Gallup, eight in 10 remote-capable employees expect to work hybrid or fully remote, with 60% wanting to work off-site for part of the week and almost 30% not wanting to return to the office at all.

Deloitte’s statistics reveal a similar pattern:

• 29% of remote-capable employees are fully remote today
• 40% of remote-capable employees have shifted from working entirely on-site to either a hybrid or exclusively remote work arrangement.

This shift is not only the result of digitization and the pandemic. Many employees have found that they like the flexibility of hybrid work, and 46% of respondents in a Workmonitor report by Randstad said they would quit if their jobs did not support work-life balance.

The challenge is that working remotely, or even hybrid, is not the same as working from the office, and traditional policies may not always accommodate these differences. To meet the needs of a hybrid or remote workforce while maintaining consistency, strong company culture, and productivity, it’s essential to have a work-from-home policy that outlines how the company allows its employees to work from locations outside the traditional office environment (typically their homes). 

This type of policy specifies who is eligible to work from home, often based on the nature of their job or on a case-by-case basis. It sets expectations for working hours, clarifying if the remote work arrangement adheres to standard business hours or if there is flexibility to accommodate different schedules.

Why have a work-from-home policy

Like all company policies and procedures, a WFH policy provides clear guidelines and expectations for employees. In the context of remote work, this is crucial for maintaining consistency, efficiency, and productivity when the workplace extends beyond the traditional office setting. It ensures that employees understand their responsibilities, work hours, and the methods of communication they should use. This helps in adopting discipline and a sense of normalcy, even when working remotely.

As an HR professional, it’s important to remember that a well-defined WFH policy can lead to improved employee satisfaction and work-life balance. Allowing employees to work from home can reduce commute times and provide a more flexible schedule, accommodating personal commitments and leading to a better balance between work and personal life.

In terms of productivity, many companies find that employees are more productive when they have control over their working environment. Without the usual office distractions and with the ability to create a personalized workspace, individuals find they can focus better and be more efficient with their time.

However, as with all business practices, a work-from-home policy is only effective if it is designed with the organization and employees’ needs in mind and is managed and measured.

What to include in your work-from-home policy

HR should consider various factors to ensure a comprehensive and clear policy when constructing work-from-home policy guidelines. 

Some key considerations you should include:

• Eligibility: A clear definition of which employees and job scopes are covered by the policy and under what circumstances it applies. This includes which roles are eligible for remote work and the extent to which they can work from home.
• Request process: A process for employees to request work-from-home arrangements, including any necessary approvals from management.
• Communication and scheduling: Communication channels, flexibility of work hours, and where, when, and how employees should collaborate and connect.
• Performance evaluation: How performance and outputs will be measured.

Importantly, a hybrid work-from-home policy will include a range of policies within the overarching policy. By its very nature, a work-from-home policy is not one-size-fits-all, and yet it is the foundation for transparency and consistency. The various ‘sub’ policies within your work-from-home policy will, therefore, meet employees’ different needs.

Here are a few policies you could include:

1. Hybrid work-from-home policy: Outline how the hybrid model operates, with specifics on how many days are expected in-office versus at home. For more detailed guidelines, read our article on developing a hybrid work schedule.

2. Work-from-home internet outage policy: Establish a protocol for what employees should do in case of an Internet outage, including any expectations for communication and a timeframe for resolving the issue.

3. Work-from-home security policy: Emphasize the importance of information security and specify the measures employees must take to protect company data. This includes using secure connections, company-approved devices, and adhering to IT security policies.

4. Work-from-home stipend policy: If applicable, define a stipend policy to cover the costs of home office setup or ongoing expenses that employees might incur when they work from home.

5. Work-from-home reimbursement policy: Provide details on what costs the company will reimburse, the process for submitting expenses, and any limits on reimbursable amounts.

6. Work-from-home equipment policy: Clarify if the company will provide the necessary equipment (computers, phones, ergonomic furniture) and how equipment support and maintenance will be handled.

7. Work hours and flexibility: Define core working hours during which all employees are expected to be available while also providing flexibility to accommodate personal obligations and varying time zones.

8. Performance management and productivity tracking: Outline how performance will be assessed. For example, is productivity based on output and completion of objectives or hours logged? What regular digital productivity tracking tools are in use?

9. Communication protocols: Determine expected response times during work hours and the use of company-approved platforms for all work-related discussions and file sharing.

10. Professional development: Outline how employees working from home will have equal access to professional development opportunities and training resources, ensuring remote work does not hinder career growth and skill advancement. Also, discuss the expectations on remote employees in terms of their development.

Work-from-home policy examples

Example 1. Atlassian blazes a trail in work-from-home

Dubbed Atlassian’s ‘Team Anywhere’ initiative, Atlassian has been a distributed company since its first US office opened in 2005. The company has redefined the concept of a distributed workforce by offering flexibility and autonomy in work locations, whether it’s from home or in-office. 

Team Anywhere emphasizes asynchronous communication and reserves real-time meetings for key activities like project kick-offs and brainstorming. They strive for progress over perfection, continually adapting their approach based on feedback and learning. The goal is to merge remote working strengths with in-person interaction benefits for a balanced solution.

Example 2. The EY work-from-home difference

EY’s work from home mandate is that “Work is what you do, not where you go.” According to EY’s website, the company’s remote working policy was developed before the lockdown and is still in place today.

EY’s policy encourages working from home, although its offices remain open, primarily to assist its employees when they face issues like power or internet disruptions. EY has also introduced an app for employees to log visits to the office or clients and has set up a ‘click and collect’ service for those needing to acquire tech accessories or other essentials.

Work-from-home policy template

14 HR best practices when developing a work-from-home policy

To make the most of your work-from-home policy, follow these tried-and-tested best practices:

1. Provide training: Offer comprehensive training on digital tools and platforms that facilitate remote work, ensuring that all employees use them comfortably and efficiently.
2. Encourage regular check-ins: Encourage regular check-ins between managers and their teams, possibly through daily or weekly virtual meetings, to keep everyone aligned and informed.
3. Prioritize cybersecurity: Provide extensive training on cybersecurity best practices to all employees to protect sensitive company information.
4. Encourage work-life balance: Encourage employees to maintain regular work hours and to take breaks throughout the day to avoid burnout and maintain work-life balance.
5. Organize social events: Create virtual social events, like online coffee breaks or team games, to maintain morale and a sense of community among remote workers.
6. Develop clear communication protocols: Ensure that team members remain connected and collaborative.
7. Implement virtual project management tools: Help track progress on tasks and projects.
8. Establish clear performance metrics: Align metrics with remote work outputs rather than time spent in the office.
9. Enable a good home office setup: Provide ergonomic guidance and support for setting up a home office to help reduce the risk of strain and injury.
10. Provide support: Offer mental health support, such as access to counseling or mindfulness resources, acknowledging that remote work can sometimes lead to feelings of isolation.
11. Encourage a culture of trust and autonomy: Train managers on managing remote employees to help avoid micromanagement, which can be counterproductive in a remote setting.
12. Help managers to lead by example: Ensure leaders model healthy work-from-home behaviors to set a standard within the organization.
13. Offer reimbursements or subsidies: Reimburse or subsidize home office expenses to alleviate any financial burdens on employees.
14. Review and revise: Review and revise the work-from-home policy regularly to adapt to changing circumstances and feedback from employees.

Implementing these practices can help ensure a smooth transition to remote work and contribute to the sustainability and success of work-from-home programs.

To sum up

The implementation of a comprehensive work-from-home policy is crucial for modern organizations aiming to stay competitive. This policy is the foundation for clear communication, efficient operation, and sustained employee engagement, regardless of geographical boundaries.

By considering factors such as eligibility, communication protocols, and performance tracking, companies can foster a productive and flexible work environment that aligns with the goals of both the organization and its employees. Ultimately, a well-designed WFH policy enhances operational efficiency and supports a healthier, more balanced approach to work.

The post What To Include in Your Work-From-Home Policy (Plus Free Template) appeared first on AIHR.

Contents
What is organizational restructuring?
The role of HR in organizational restructuring
Types of organizational restructuring
7 organizational restructuring strategies for HR
Organizational restructuring examples
Organizational restructuring plan template
Organizational restructuring announcement letter
9 steps HR should take in organizational restructuring

What is organizational restructuring?

Organizational restructuring is a strategic process aimed at enhancing efficiency, adapting to new market demands, or improving competitiveness. It can significantly alter a company’s structure, strategy, and operations.

The process includes realigning departments, redefining roles and responsibilities, and sometimes downsizing to improve efficiency and effectiveness. It’s not just a cost-cutting measure but a strategic decision to improve overall productivity and long-term sustainability.

Organizations may decide to restructure for various reasons:

•  Responding to economic pressures: Economic downturns or shifts in market conditions can necessitate changes in how a company operates to maintain its competitiveness.
• Mergers or acquisitions: Combining different cultures, systems, and processes from multiple organizations can require thoughtful restructuring to achieve seamless integration.
• Continuous improvement initiatives: Ongoing efforts to enhance processes and reduce inefficiencies often call for periodic restructuring to align with best practices and technological advancements.
• Leadership changes: New leaders may bring different strategic visions that necessitate changes in organizational structure to support new directions and initiatives.

The role of HR in organizational restructuring

HR plays an important role in reshaping the organizational model to align with new business strategies and objectives. HR is involved in managing the operational aspects of restructuring and supporting the organization’s strategic vision.

Here are HR’s key responsibilities and roles during corporate restructuring:

1. Overseeing staff reduction processes: HR is responsible for planning and executing staff reductions in a manner that is legally compliant and handled ethically. This includes determining severance packages, conducting exit interviews, and ensuring that the process is transparent and respectful to affected employees.
2. Managing communication strategies: Effective communication is vital during restructuring. HR must develop a communication strategy that keeps all stakeholders informed throughout the process. This involves regular updates about the restructuring plans, timelines, and potential impact on employees. Clear and consistent communication helps manage the uncertainty and anxiety typically associated with organizational changes.
3. Redeployment and retraining of employees: As part of restructuring, HR may need to redeploy employees to different roles that better suit the new organizational structure. This often requires retraining employees to equip them with the necessary skills for their new roles. HR must assess the skills gaps and implement training programs to ensure a smooth transition.
4. Facilitating post-restructuring culture shifts: After restructuring, there is often a need for a shift in organizational culture to align with the new business direction. HR plays a crucial role in driving this cultural change, fostering a culture that supports the organization’s strategic goals. This includes reinforcing new values, behaviors, and ways of working that support the revamped organizational model.
5. Monitoring employee morale and engagement: Throughout the restructuring process, HR needs to monitor and address changes in employee morale and engagement. This includes conducting employee engagement surveys, setting up feedback mechanisms, and implementing initiatives to maintain or improve employee engagement during the transitional period.
6. Strategic workforce planning: HR must align the workforce plan with the future needs of the business. This involves analyzing current workforce capabilities, forecasting future needs, and developing a plan to close the gap between the current state and future requirements. This strategic planning is crucial for ensuring that the organization has the right talent in place to achieve its objectives post-restructuring.

HR tip

During times of change, maintaining or increasing employee engagement is essential. Engage employees through involvement in decision-making where appropriate, recognize and celebrate milestones and successes, and provide clear pathways for feedback. This not only helps retain talent but also smooths the transition by making employees feel valued and involved in the process.

Types of organizational restructuring

Legal restructuring

This involves changing the company’s legal structure to meet regulatory requirements, optimize tax strategies, or better align with business strategies. Legal restructuring may include forming, merging, or dissolving company entities.

Functional restructuring

This targets the functions within an organization, such as sales, marketing, or production. The aim is to enhance efficiency by reallocating resources, merging similar functions, or even outsourcing certain functional tasks.

Strategic restructuring

Strategic restructuring involves rethinking and realigning the company’s strategic goals to adapt to market changes, technological advancements, or changes in consumer behavior. It may require pivoting to new markets, products, or service offerings.

Cost restructuring

Here, the focus is on reducing expenses to improve financial health. Techniques can include streamlining operations, reducing the workforce, renegotiating contracts, and cutting non-essential costs.

Divestment

This type of restructuring involves selling off parts of the organization to raise capital, exit non-core businesses, or simplify the organizational structure. Divestments help the company to focus on its core competencies.

Mergers and acquisitions (M&A)

M&A involves either merging with or acquiring another company to enhance competitive positioning, enter new markets, or gain new technologies. This can radically transform the company’s operations, market presence, and strategic direction.

Portfolio restructuring

This is about reviewing and adjusting the mix of businesses or investments a company holds. The aim is to optimize the investment portfolio’s performance in line with the company’s strategic objectives.

Cultural restructuring

Although less tangible, cultural restructuring is crucial and involves changing the corporate culture to support new organizational directions or structures. This might be necessary after mergers, during leadership changes, or when trying to innovate corporate practices.

Each type of restructuring is based on specific internal needs and external conditions, and often, multiple types are implemented concurrently to achieve comprehensive transformation.

7 organizational restructuring strategies for HR

Here are seven strategic frameworks and actions HR needs to implement:

1. Staffing considerations

Strategic framework: Effective staffing during restructuring involves assessing current and future organizational needs, identifying gaps, and making adjustments to the workforce accordingly.

 2. Change management

Strategic framework: Change management is essential for helping employees navigate the restructuring process smoothly and effectively.

3. Communication with employees

Strategic framework: Clear, consistent, and transparent communication is crucial to maintaining trust and morale during periods of significant change.

4. Legal and compliance considerations

Strategic framework: Ensuring compliance with legal standards and internal policies is critical to mitigate risks associated with restructuring.

5. Talent and performance management

 Strategic framework: Managing talent effectively involves aligning employee skills and performance with the new strategic goals of the organization.

6. Cultural shift management

Strategic framework: Cultural adjustments are often necessary to align with new organizational structures and strategies.

7. Employee support programs

Strategic framework: Supporting employees through transitions with appropriate programs helps reduce turnover and maintain morale.

Organizational restructuring examples

Example 1. The Wall Street Journal

The WSJ, a flagship publication of Dow Jones, underwent a significant reorganization in 2017 to shift towards a more digital-focused strategy.

From an HR standpoint, this restructuring was handled with a strong emphasis on minimizing layoffs. Instead of reducing its workforce, WSJ reallocated existing employees to new roles suitable for a digital environment.

This strategy involved asking employees to apply for newly defined positions, allowing the company to maintain a stable headcount while aligning its workforce with technological advancements and market needs.

This approach helped in retaining talent and ensured that the existing employees were part of the transition, supporting a smoother cultural shift towards digital operations​.

Example 2. Hulu

Hulu’s reorganization in 2023 was driven by its need to support rapid growth and expand its streaming content.

The restructuring led to the creation of new key management positions, including a Chief Technology Officer and Chief Data Officer, to align with its strategic priorities.

Hulu’s HR approach focused on both scaling up by hiring new tech and product employees and streamlining operations to enhance efficiency. This dual focus helped Hulu manage its existing workforce effectively during the transition and attract new talent to support its expansion plans.

The restructuring was part of a broader strategy to make Hulu more attractive to potential buyers and investors, particularly during a time when it was considered a valuable asset in Disney’s bid to purchase 21st Century Fox​.

HR tip

Keep all employees informed throughout the restructuring process. Transparent communication prevents rumors, reduces anxiety, and builds trust. Ensure that messages are clear and consistent, detailing what changes are occurring, why they are needed, and how they will impact the various team members.

Organizational restructuring plan template

Organizational restructuring announcement letter template

The announcement letter is critical in the early stages of organizational restructuring. It will set the tone and expectations for the changes ahead.

9 HR steps HR to take in organizational restructuring

These are nine steps HR can take in organizational restructuring:

• Step 1: Conduct a workforce analysis: Begin by assessing the current workforce capabilities, identifying skills gaps, and forecasting future needs. This helps determine which roles need to be filled, retained, or redefined to align with the new organizational goals.
• Step 2: Develop a redeployment strategy: Plan for moving employees to new roles or departments where their skills are most needed. Consider the potential for internal mobility and career progression, which can help retain talent and maintain morale.
• Step 3: Implement a retraining program: Provide training and development opportunities to help employees adapt to new roles. This includes upskilling and reskilling programs tailored to the organization’s strategic directions and the workforce’s specific needs.
• Step 4: Support leadership development: Equip leaders with the necessary skills and knowledge to guide their teams through the transition. This involves training leaders on change management, communication, and leadership in a changing environment to ensure they can effectively support their teams.
• Step 5: Manage outplacement services: For eliminated positions, provide support such as counseling, resume workshops, and job search assistance. This shows a commitment to the welfare of outgoing employees, preserving the company’s reputation, and supporting community employment.
• Step 6: Monitor employee wellbeing: Implement initiatives that support employee mental health and morale during the transition. This could include wellness programs, open forums for feedback, and regular communication to keep the workforce engaged and informed.
• Step 7: Evaluate the restructuring impact: Regularly review the outcomes of the restructuring against the initial objectives. This ongoing evaluation helps HR adjust strategies as needed, ensuring the restructuring achieves its goals without adversely impacting the organization or its people.
• Step 8: Facilitate continuous communication: Throughout the restructuring process, maintain clear and open lines of communication. Inform employees about the reasons for the changes, the expected outcomes, and how they will be affected. Transparency is key to maintaining trust and commitment during periods of change.
• Step 9: Strengthen organizational culture: Post-restructuring, focus on reinforcing a positive organizational culture that aligns with the new business model. This involves promoting values that support the new strategic direction and encouraging behaviors that foster innovation and collaboration.

To sum up

Companies undertake corporate restructuring to improve efficiency, adapt to new market conditions, or achieve specific business objectives. Changing the organizational structure may include altering reporting relationships, redistributing responsibilities, and consolidating or dividing departments. The goal is to optimize workflow, enhance communication, and better align resources with the company’s strategic goals. These changes often lead to shifts in job roles, the introduction of new technologies, or modifying operational practices.

For HR, organizational restructuring presents challenges and opportunities. HR is pivotal in managing the change process, ensuring smooth transitions while minimizing disruption to operations and employee morale. This involves clear communication about the reasons for changes, the expected outcomes, and the impacts on staff. HR must also handle practical aspects like redefining job descriptions, overseeing training programs for new skills, and possibly managing layoffs or reassignments. Effectively, HR’s role is critical in maintaining stability and cultivating a positive work environment during the upheaval of restructuring.

The post Organizational Restructuring: 7 Strategies for HR (Plus Free Template) appeared first on AIHR.

Various reports also reveal a strong correlation between a positive culture and employee satisfaction, making a strong company culture a strategic imperative that demands continuous attention and integration throughout all aspects of the organization.

Contents
What is organizational culture?
What role does HR play in organizational culture?
Types of organizational culture
15 characteristics of a healthy organizational culture
The role of HR in organizational culture
Great cultures in action

What is organizational culture?

In management expert Peter Drucker’s immortal words, “Culture eats strategy for breakfast.” But what does that actually mean?

Organizational culture refers to the shared values, beliefs, and norms that influence the behavior of individuals within an organization. It encompasses everything from the environment and ethos of a company to the values that guide how employees interact, make decisions and perceive their roles and responsibilities.

According to Harvard DCE Professional & Executive Development, the average adult living in the United States will spend one-third of their life at work. The culture they experience during those estimated 90,000 hours is incredibly important to how they feel, their general health and wellness, their work engagement, and overall productivity.

According to SHRM’s report, The State of Global Workplace Culture in 2023, employees who rate their organization’s culture as “good” or “excellent” versus “poor” or “terrible” are 79% more likely to feel satisfied at work. They are also 83% less likely to be actively looking for a new job.

Glassdoor and Indeed’s Work Wellbeing 2022 Insights Report supports these statistics, with 90% of people believing that how they feel at work matters. However, only 49% of people report that their company measures happiness and wellbeing. 

This indicates that there is a gap between the importance of culture and the actual measurement and understanding of employee wellbeing. Add to that the fact that 46% of people are saying that their expectation around happiness at work has increased in just the last year, and it’s clear that there needs to be a greater emphasis on designing, implementing, and supporting organizational culture.

What role does HR play in organizational culture?

In the past, the approach to establishing organizational culture was quite linear: The CEO would direct the HR department to create a corporate culture. HR would then launch a campaign to promote a mission and values created by the CEO and senior management.

They might introduce workplace perks such as complimentary snacks or monthly birthday celebrations and perhaps conduct yearly employee engagement surveys, reporting the findings back to the CEO. Having ticked these boxes, the CEO and HR would often consider the task of culture creation complete and shift their focus elsewhere.

Treating culture with a tick-box mentality no longer works (if it ever did). The heightened emphasis on diversity, equity, and inclusion (DEI), workplace health and wellbeing, hybrid workplaces, and the ongoing competition for skilled labor mean that culture is no longer a peripheral concern.

It is a central strategic element with direct consequences for financial performance. It demands continuous attention and integration across all aspects of the organization rather than being siloed or seen as a one-off project. As an HR professional, you are uniquely positioned to create and support a healthy organizational culture.

Types of organizational culture

First, let’s take a look at the different types of organizational culture various businesses implement. According to Robert E. Quinn and Kim S. Cameron from Michigan University, organizational cultures are classified based on two types of competing values: flexibility versus stability and an internal versus external focus.

Here are six examples of how this looks in practice:

1. Adhocracy culture: Often referred to as the ‘create culture’, this culture is dynamic and entrepreneurial. It emphasizes innovation, flexibility, and adaptability, encouraging employees to take risks and think outside the box.
2. Clan culture: Known as the ‘collaborate culture’, clan culture is people-oriented and friendly. It focuses on teamwork, participation, and consensus, creating a family-like work environment where relationships and loyalty are valued.
3. Hierarchy culture: The ‘control culture’ is process-oriented and structured. It prioritizes efficiency, stability, and doing things right, emphasizing formal rules, policies, and hierarchical authority.
4. Market culture: Termed the ‘compete culture’, this culture is results-oriented and competitive. It drives employees to achieve measurable goals and perform at high standards, focusing on outcomes and productivity to outperform competitors.
5. Purpose culture: This culture is centered on ideals and a sense of mission that surpasses daily business operations. It emphasizes shared values and a commitment to societal or environmental goals to inspire employees and align their efforts with a broader purpose.
6. Learning organizational culture: Characterized by continuous improvement and adaptability, this culture promotes ongoing education, innovation, and a willingness to learn from mistakes. It nurtures an open-minded environment where knowledge sharing and collaboration are key to meeting new challenges.

15 characteristics of a healthy organizational culture

There is no right or wrong company culture. Instead, there are organizational cultures that suit the leadership, mission, purpose, and values of the business and its employees. When the culture and a company’s stated mission and values do not align, the environment can become toxic.

However, if your goal is to create a healthy organizational culture, here are 15 characteristics that contribute to the effectiveness and sustainability of a company’s culture.

Characteristic 1. Shared common values

Shared common values refer to the fundamental beliefs and principles that an organization adopts as its foundation.

These values act as a compass, guiding behaviors, decision-making, and interactions both within the organization and with external stakeholders. They help create a cohesive culture by aligning employees’ actions with the company’s core mission and vision.

Characteristic 2. Clear purpose and direction

A clear purpose and direction align the organization’s efforts and goals. This clarity helps unite the team, focusing their efforts on achieving specific objectives and guiding strategic planning and daily operations.

Characteristic 3. Transparent and regular communication

Transparent and regular communication supports openly sharing information and feedback throughout the organization. This practice fosters trust, helps in early identification of issues, encourages collaboration, and ensures that everyone is informed and aligned with the organization’s goals.

Characteristic 4. Collaboration and teamwork

Collaboration and teamwork underpin a cooperative environment where groups work together to achieve collective objectives. This approach enhances problem-solving, innovation, and efficiency, while also building a supportive work environment.

Characteristic 5. Active involvement and commitment

Employees are actively involved and committed to their work and the organization’s success. When employees are engaged and committed, they are more productive, contribute ideas, and take initiative, driving the organization forward.

Characteristic 6. Opportunities for growth

Opportunities for growth refer to the avenues provided by an organization for personal and professional development. This includes training programs, mentorship, career advancement paths, and learning resources. Such opportunities increase employee satisfaction, competency, and retention.

Characteristic 7. Recognition and rewards

Recognition and rewards involve acknowledging and appreciating employees’ efforts, achievements, and contributions. This can be through formal awards, bonuses, promotions, or simple verbal recognition. It motivates employees, reinforces desired behaviors, and enhances loyalty.

Characteristic 8. Welcoming and inclusive atmosphere

A welcoming and inclusive atmosphere is one that values diversity, promotes equity, and ensures all employees feel respected and valued regardless of their background.

An inclusive culture benefits from a wider range of perspectives and experiences, leading to better decision-making and innovation.

Characteristic 9. Credibility and trust

Credibility and trust are built through consistent ethical behavior, transparent decision-making, and integrity in leadership. This foundation allows for open communication, encourages risk-taking, and strengthens relationships within the organization.

Characteristic 10. Clear objectives and strategies

Clear objectives and strategies provide direction for what the organization aims to achieve and how it plans to get there. This clarity helps prioritize tasks, allocate resources efficiently, and measure progress, ensuring that everyone is working toward the same goals.

Characteristic 11. Flexibility and responsiveness

Everyone within the business has the ability to respond to changing environments and needs quickly and effectively due to high levels of trust and flexibility.

This agility is crucial for staying competitive and meeting stakeholder expectations in a dynamic business environment.

Characteristic 12. Empowerment and initiative

Employees are empowered and encouraged to take initiative and make decisions that influence their work and the organization positively. This empowerment fosters a sense of ownership, drives innovation, and accelerates problem-solving within the organization.

Characteristic 13. Constructive handling of disagreements

Constructive handling of disagreements means addressing conflicts in a positive manner that respects all parties involved and seeks a solution beneficial to everyone.

This approach prevents escalation, promotes understanding, and maintains harmony within the team.

Characteristic 14. High ethical standards

Upholding high ethical standards involves conducting business and making decisions in a manner that is fair, responsible, and compliant with legal and moral guidelines. This commitment to ethics protects the organization’s reputation and ensures long-term success.

Characteristic 15. Community engagement

Community engagement refers to the efforts made by an organization to contribute to the wellbeing of the communities in which it operates. Engaging in social responsibility initiatives demonstrates the organization’s commitment to making a positive impact beyond its business interests.

The role of HR in organizational culture

If you’ve reached this point in this article, you are hopefully all in on how important organizational culture is, as well as the critical role you can play in creating and sustaining a healthy company culture.

With that in mind, here are some areas where your input can be game-changing for your organization and its employees:

1. Define your company culture  

HR plays a pivotal role in shaping and clearly articulating the company’s mission, vision, and values.
→ Do this: Collaborate with leadership to craft meaningful, resonant statements. Conduct workshops to ensure these values are relevant and embraced across all levels.

2. Measure the existing culture

Regular assessments of the organizational culture let you understand its strengths and weaknesses.
→ Do this: Use surveys and feedback tools to gauge employee sentiment and alignment with the company values. Analyze turnover rates and employee engagement scores.

3. Hire for cultural fit

Ensure new hires align with the company’s cultural values.
→ Do this: Incorporate cultural fit into recruitment criteria. Use behavioral interview techniques to assess candidates’ alignment with organizational values.

4. Implement programs that build company culture

Create and manage programs that reinforce the desired culture.

→ Do this: Develop comprehensive onboarding programs that introduce new hires to the company culture. Implement recognition programs that reward behaviors aligned with company values.

5. Support diversity and inclusion

Build a culture that embraces diversity and inclusion.
→ Do this: Implement diversity training programs. Create diverse hiring panels to ensure a broad range of perspectives in the recruitment process.

HR tip

Go beyond the numbers. As open-ended survey questions to get insights into employee sentiments and cultural dynamics. This can be especially powerful in pinpointing the root causes of cultural toxicity.

6. Assist with adapting the culture

Facilitate culture adaptation during organizational changes like mergers or rapid growth.
→ Do this: Provide training and support to help employees navigate changes. Establish clear communication channels to keep staff informed and engaged during transitions.

7. Support internal communication

Enhance the effectiveness of internal communication strategies.
→ Do this: Develop internal communication platforms that facilitate open discussions and sharing of ideas. Organize regular town hall meetings to discuss company values and direction.

8. Promote work-life balance

Encourage a healthy balance between work and personal life.
→ Do this: Implement flexible working policies and support remote work options. Provide resources and programs that assist with stress management and mental health.

9. Develop leadership

Ensure leaders are ambassadors of the company culture.
→ Do this: Offer leadership development programs that emphasize cultural leadership. Mentor leaders on how to exemplify and reinforce company values in their teams.

10 Monitor and enhance employee satisfaction

Regularly assess and improve employee satisfaction.
→ Do this: Conduct annual employee satisfaction surveys. Create action plans based on survey results to address areas of concern and enhance positive aspects of the work environment.

11. Enhance organizational ethics

Uphold and promote ethical standards within the company.
→ Do this: Create clear ethical guidelines and conduct regular ethics training. Establish a confidential system for employees to report unethical behavior.

12. Facilitate team building

Strengthen team cohesion and promote a collaborative environment.
→ Do this: Organize regular team-building activities that align with company values. Create cross-departmental projects to enhance collaboration.

13. Sustain safety and wellbeing

Ensure the physical and psychological safety of the workforce.
→ Do this: Conduct regular safety drills and training. Offer wellbeing programs that include physical, mental, and emotional health resources.

Great cultures in action

To give you some inspiration, here is how HubSpot and Zappos approach culture.

Example 1: The HubSpot Culture Code

HubSpot views company culture as the promise you make to your employees and candidates. It answers key questions like, ‘What sort of environment can people expect to work in? What are our core values? What are our norms?’

To ensure everyone at HubSpot understands what that promise is and what to expect, employees who work at HubSpot are expected to have HEART: To be Humble, Empathetic, Adaptable, Remarkable, and Transparent.

Here is how HubSpot defines its culture:

• Culture is to recruiting, as product is to marketing
• Solve for the customer, not just their happiness but their success
• Power is gained by sharing knowledge, not hoarding it
• HubSpot has a no-door policy, where everyone in the company has access to anyone
• You shouldn’t penalize the many for the mistakes of the few
• Results should matter more than when or where they are produced
• Influence should be independent of hierarchy
• Great people want direction on where they’re going, not directions on how to get there
• We’d rather be failing frequently than never trying.

Example 2: Zappos lives and delivers WOW

Known for ‘the culture everyone wants to copy’, Zappos’ culture is defined by its commitment to customer service and company values, emphasizing employee happiness and organizational flexibility.

Core elements of its culture include a strong focus on customer satisfaction, a distinctive approach to employee engagement, such as the $1000 offer to quit after a few weeks on the job (Zappos does not want anyone who does not 100% want to be there), and a flat organizational structure through ‘Holacracy’. This blend of creativity, autonomy, and a strong value system has proven itself through a cohesive and innovative work environment.

Here are a few cultural phenomena Zappos has personified:

• Zappos strongly emphasizes exceptional customer service and aligns its entire culture around enhancing customer satisfaction. Founder Tony Hsieh has made it clear he willingly gives up short-term profits to ensure his company has the best culture possible.
• Initiatives like the ‘Pay to Quit’ bonus are designed to ensure employees are genuinely committed to the company’s culture.
• Zappos employs a unique management system that removes traditional hierarchies, promoting autonomy and rapid decision-making.
• New hires undergo extensive training to immerse them in the company’s values, ensuring a good fit with the organizational culture.
• Zappos values adaptability and continuous improvement, encouraging employees to embrace change positively.

To sum up

With a majority of people (79%) more likely to feel satisfied at work in a positive culture, and 83% less likely to seek new jobs, it’s evident that how employees perceive their workplace culture directly impacts their work satisfaction and loyalty. This underscores Peter Drucker’s sentiment that culture is more influential than strategy in determining a company’s success.

HR (that means you) has moved away from implementing top-down culture initiatives to actively shaping and nurturing an organizational culture that aligns with modern workplace demands such as diversity, equity, inclusion, and employee wellbeing. HR professionals have the critical role of focusing on continuous culture assessment, crafting inclusive policies, and aligning hiring practices with the organization’s cultural values to ensure sustained organizational health and effectiveness.

There are many different types of organizational cultures. The suitability of a culture type depends on your organization’s goals, industry, and workforce dynamics. Recognizing and intentionally cultivating a specific type of culture can lead to better alignment with organizational objectives and enhance overall performance, suggesting that one-size-fits-all approaches to culture may not be effective.

The post 15 Characteristics of (a Healthy) Organizational Culture appeared first on AIHR.

When employees respond well to an organizational culture, it encourages collaboration and innovation to propel the company forward. On the other hand, an organizational culture that employees find discouraging can hinder success. 

Organizational culture surveys tell the story of what’s going on in your workplace culture. This article covers what organizational culture surveys have to offer, provides 17 example questions to ask your employees, and recommends some best practices for administering and making the best use of them.

Contents
Why measure organizational culture?
17 organizational culture survey questions to ask
Checklist: How to conduct an organizational culture survey
Organizational culture survey: Top tips for analyzing the results

Why measure organizational culture?

The type of culture an organization offers can work to either its benefit or detriment. A cohesive, supportive culture creates trust, camaraderie, and belonging and unites employees with organizational goals and each other. It’s also a catalyst for attracting and retaining highly talented employees who are engaged and productive. 

In fact, 92% of the 3,000 participants in an EY U.S. survey stated that company culture is a top factor in whether they stay with an employer.

A Gallup poll showed that only 21% of respondents strongly agreed with feeling connected to their organization’s culture.

However, those that do feel connected are:

• 3.7 times as likely to be engaged in their jobs
• 68% less likely to often feel burned out at work
• 55% less likely to be on the lookout for a new position
• 5.2 times as likely to strongly recommend their employer to others. 

Since healthy, resilient cultures support better business success, every organization must stay abreast of how its current culture resonates with employees. Measuring organizational culture is the key to this.

The benefits of conducting an organizational culture survey

While there are other ways to gauge corporate culture, a survey can help get data directly from employees to make informed HR and business decisions.

Conducting organizational culture surveys offers many advantages, including the following:

• Identifying the current culture and establishing benchmarks for future assessments
• Being aware of what employees appreciate about the culture
• Identifying issues and practices that undermine the culture
• Fostering transparency and communication with employees
• Demonstrating a commitment to valuing employee input
• Empowering changes that drive improvements.

17 organizational culture survey questions to ask

Employee feedback is essential when evaluating organizational culture. To understand employees’ authentic perceptions of your culture, you need to ask questions that will extract the right information.

Following are 17 sample organizational culture survey questions, with explanations of how they relate to assessing workplace culture.

1. Is the organization’s mission and vision clear to you? 

Organizational culture should match up with what the company claims to be about. If employees are unclear about the organization’s mission and vision, they can’t live them out as expected. 

2. Do you see the impact of your duties on achieving organizational goals?

Employees who can see the value of their contributions will feel aligned with the organization and form a more connected culture.

3. How effective is overall communication throughout the organization?

When employees feel informed about what’s happening, there is greater transparency and less employee frustration in the work environment.

HR tip

In-depth (20+ questions) company culture surveys should generally be conducted at least once a year. Shorter pulse surveys can be useful to send out a few times per year. These can help to understand the impact of significant organizational changes, measure cultural improvement initiatives, and help allocate resources.

4. Is there transparency in how high-level decisions are made?

When employees understand the reasons for changes and new procedures, it reduces misinformation and negative speculation that can circulate throughout the workplace.

5. Are the organization’s ethics and compliance policies clearly defined and carried out? 

A lack of ethics or inconsistencies in practicing them can lead to mistrust and problematic behaviors.

6. Does the organization provide a safe working environment for all employees?

It’s difficult to cultivate a positive organizational culture if employees feel unsafe or like they have to be overly cautious.

HR tip

Inform employees that their survey responses are confidential. You must guarantee anonymity for employees to feel safe sharing the kind of candid feedback you need from them.

7. Does the organization honor and promote Diversity, Equity, Inclusion and Belonging?

DEIB statements and policies are easy to implement, but employees will sense if they’re just lip service.

8. Does the organization support employee wellbeing and work-life balance?

When employees feel valued as human beings, not just workers, it creates a nurturing environment where they can thrive.

9. Does your manager empower you to make decisions?

A sense of autonomy allows employees to take more pride in their work and realize they can make an impact.

HR tip

Ask executive leaders to participate in the survey as well. Consider isolating their results and comparing them to the overall results. This will reveal any disconnect between how leadership and the rest of the workforce interpret culture.

10. Do you feel free to voice your ideas and opinions on work matters?

When employees can speak freely, they feel heard and entrusted with bringing solutions to the conversation. 

11. Can you voice concerns without fear of repercussion?

If employees know they’ll suffer consequences for speaking up, they’ll tend to ignore problems or tolerate difficult situations. Small struggles will fester into crises that create a contentious environment, leading to worse business outcomes.

12. Do you feel encouraged to originate and experiment with creative ideas? 

In a healthy organizational culture, employees know they can try new ways of doing things, even if they don’t always succeed.

HR tip

Anticipate any obstacles employees might face in completing the survey. For example, will they have enough allotted time for it? Will the survey load and be easy to complete on their devices?

13. Is the onboarding process effective in helping new employees settle into the workplace?

New hires get their first real taste of company culture during onboarding. They will feel valued and appreciated if they are welcomed and well-prepared to start their roles.

14. Are conflicts and interpersonal issues addressed and resolved effectively?

Tension among employees can be picked up by everyone they interact with and can spread throughout the workplace. Addressing these situations promptly prevents them from becoming a tolerated norm.

15. Are enough opportunities provided for continuous learning and acquiring new skills?

An organization’s commitment to long-term employee investing demonstrates a culture of growth and development.

HR tip

No survey can cover everything, so allow employees the chance to offer more input. Include a section where employees can share additional comments or suggest other questions they’d like to see on the survey.

16. What do you like best about our company’s culture?

Hearing directly from employees about your strong cultural points will reveal what you should be reinforcing.

17. How could the organizational culture be improved?

Every employee will value different aspects of organizational culture. However, uncovering the most common priorities will help you spot emerging problems and focus on the most meaningful areas.  

Checklist: How to conduct an organizational culture survey

An effective organizational culture survey questionnaire is intentional. It’s important to consider the factors that will help you engage employees and capture the right information.

Here are six steps to guide you through the process of executing an organizational culture survey:

• ✓ Identify the objectives: Determine the purpose of the survey. In other words, why do you want to gather this information from employees? Do you want to affirm the overall culture’s strengths and weaknesses? Are you trying to assess whether the culture is affecting employee engagement? Maybe you want to see how well the culture reflects the company’s core values. Once you decide on the end goal, you’ll be able to design the survey specifically with this in mind.
• ✓ Collaborate with stakeholders: Getting stakeholder input on the survey structure and topics will generate diverse perspectives to ensure the survey is comprehensive and relevant to the entire organization. Key stakeholders to engage with may include executives, team leaders, other HR team members, and employee representatives.
• ✓ Choose the survey delivery method: The right survey delivery method is crucial to getting maximum participation and optimal results. A user-friendly online platform streamlines the process by providing easy access and simplifying data collection and analysis. If you have deskless employees with varying degrees of access to digital tools, be sure to incorporate alternative formats.
  Make the survey as concise as possible. Reveal the number of questions upfront so employees know what to expect. A progress bar displayed throughout the survey may keep respondents on task.
• ✓ Choose question types and craft the wording: Several question formats are commonly used in culture surveys. For example, multiple-choice, yes/no rank order, opinion scale, Likert scale, and open-ended short answer. Using a combination of types will gather different types of data, break up the monotony of the survey, and give respondents more options for expressing their opinions.
  Ensure that each question is worded to be clear, concise, and focused on relevant feedback. Avoid biased wording that prompts the desired response. (i.e., “How amazing is our relaxed work environment?”) Use straightforward language and avoid HR or other kinds of jargon that some employees won’t be familiar with.
• ✓ Conduct a pilot survey: Before officially launching the survey, do a trial run with a small number of employees from various departments. They can describe what it was like to take it and reveal any problems with the survey format, question comprehension, or response options.
• ✓ Implement the survey: At this point, the survey should be ready to release. Here are a few tips for a successful roll-out:
  • Promote the survey within all applicable communication channels
  • Provide the link to the survey and share how long it will take them to complete
  • Communicate the purpose of posing employee questions about culture
  • Explain why employee input is so valuable and how it will be used
  • Describe what types of actions or initiatives may come about from the survey results and how this will affect employees.

Organizational culture survey: Top tips for analyzing the results

Key takeaway

Organizations shape their cultures both intentionally and unknowingly. Unfortunately, leaders aren’t always in touch with the nuances of how employees experience culture. 

HR can help bridge this gap by conducting an organizational culture survey and exploring the data it yields. Once you understand what your employees think works well, and what doesn’t, you’ll be equipped to strategize and act on what will enrich the culture and support organizational achievement.

The post 17 Organizational Culture Survey Questions To Include appeared first on AIHR.

Contents
What is the job characteristics model?
5 core job characteristics in the job characteristics model explained
What is the goal of the job characteristics model?
Psychological states and work outcomes
Job characteristics model examples
FAQ

What is the job characteristics model?

The Job Characteristics Model (JCM) is a framework designed to enhance employee job satisfaction and performance by focusing on effective job design. It identifies five core job characteristics that, when present, can improve employee motivation, performance, and satisfaction, and lower absenteeism and turnover.

The five job characteristics are:

• Skill variety: The extent to which a job requires a variety of different activities using specialized skills or talents
• Task identity: The degree to which a job requires the completion of a whole and identifiable piece of work and how it fits into the broader organizational context
• Task significance: The extent to which a job has a meaningful impact on the lives or work of other people
• Autonomy: The level of freedom, independence, and discretion an employee has in scheduling the work and determining the procedures to be used in carrying it out
• Feedback: The clarity and directness of information the employee receives about their job performance.

Each one of these five components can be adjusted to recalibrate a job, making it more engaging for the employee. High individual job performance ultimately leads to improved business outcomes.

The job characteristics model emerged in 1975 when organizational psychologists Greg R. Oldham and J. Richard Hackman wanted to figure out why employees lost interest in their jobs. They studied people and their jobs and came up with a universal model that is still relevant more than 40 years later.

5 core job characteristics of the job characteristics model explained

Let’s dive deeper into the five core job characteristics identified in Oldman and Hackman’s job characteristics theory and model:

Let’s have a look at how these core job characteristics translate into actual jobs:

Primary school teacher

• Skill variety. High. A primary school teacher works with multiple children and applies a multitude of skills on a daily basis. Every day, there is a new challenge.
• Task identity. This can depend on the school and the assignment. Each unit can have a beginning, middle, and end so that a teacher can see clear progress.
• Task significance. While many would argue that a primary school teacher has incredibly high task significance, their impact may be limited to one class. In contrast, a school principal oversees many teachers, students, and grades and has a higher task significance.
• Autonomy. A teacher who designs their curriculum has a high degree of autonomy. A teacher who must teach a pre-planned curriculum on a school administration schedule, using only rewards and punishments approved by the school board, will have a lower degree of autonomy.
• Feedback. The primary school teacher receives feedback from a variety of sources. They can see the test scores and the progress their students make. They also receive information from their supervisors and parents. All these things work together to provide a high degree of feedback.

Fast food worker

• Skill variety. If the employee runs a cash register, takes orders, makes sandwiches, helps with inventory, and trains new hires, this job has a high degree of skill variety. If, on the other hand, they stand at the sandwich-making station all day, it would be a low level of skill variety.
• Task identity. This would vary greatly depending on the skill variety. Someone who spends the entire day in one station could have a beginning, middle, and an end but not feel responsible for the whole process.
• Task significance. The typical fast-food worker makes very few decisions outside of a small set of tasks–should I make the sandwich first or fill the drink cup? These tasks have a low level of significance, as they do not affect the company as a whole.
• Autonomy. With low variety, task identity, and task significance, this job also comes with low autonomy. The fast-food worker makes sandwiches according to a chart on the wall and fries french fries by pushing a pre-programmed button. 
• Feedback. The fast-food worker receives feedback based on immediate responses from customers and coworkers. Managers also provide feedback.

HR Generalist

• Skill variety. The HR generalist scores very high in skill variety, as they are responsible for employee relations, benefits management, employee compensation, and many other tasks daily, having to use multiple skills.
• Task identity. While there is a strong identity associated with the title, there is very rarely a beginning, middle, and end. An HR generalist can never say, “all employees are engaged and happy, so I’m done with employee engagement tasks.”
• Task significance. A good HR generalist can help make a company run smoothly. They can coach managers to be better, provide accurate information to the government, and help employees navigate difficult situations at work. A bad one can destroy the morale of the company. Therefore, task significance is high. 
• Autonomy. This can vary greatly. An HR generalist who runs their department and reports to a supportive company president can have a high independence level. A company that limits the HR generalist’s work and undermines their suggestions can create a job with low autonomy.
• Feedback. Feedback for an HR generalist can be difficult. Some successes or failures aren’t seen for years, if ever. What’s more, a non-HR supervisor may not understand what they accomplished and give limited feedback. As a result, this can be a difficult job for accurate feedback.

What is the goal of the job characteristics model?

Oldham and Hackman were looking to reduce the boredom and monotony that comes from working in a factory setting. Instead of getting better and more productive as time passed, they found that employees were becoming bored and unengaged, and their performance dropped. This model helps turn jobs around.

The job characteristics model can help an HR professional evaluate a job and make it better and more engaging. Managers can work with their employees to create a better situation for everyone–ultimately increasing engagement and productivity.

Sometimes, jobs just “happen.” There is a lot of work to be done, so companies hire a new person but fail to conduct a job analysis and create a position without a proper job design process. Using Hackman and Oldham’s job characteristics model, you can sit down and design a job to be more effective.

Here are some of the ways that the job characteristics model can help organizations:

It helps in creating job design strategies.

Unless your business consists of one solo practitioner, you have multiple people in multiple roles. Tasks assigned to each job can vary from position to position. With the job characteristics model, you look at all the functions and build various jobs around them.

For instance, you can bring in job rotation, which allows a bit of variety in everyone’s day. Or, you can work to simplify some tasks–especially ones that are tedious. You’ll have some areas you will want to expand and make more critical, and you’ll figure out where you need to include employee enrichment.

The job characteristics model recognizes that it’s not just about working today, but developing jobs for the future, so employee enrichment is a critical part of this model.

It improves job satisfaction.

When Human Resources and management work together with the job characteristics model, they design each job to increase job satisfaction. While it’s impossible to do away with all boring or monotonous tasks, this model can reduce those problems.

For example, your busy law firm may have enough work for one person to spend all day filing–a tedious and boring job. You might break that task up so that four people spend two hours per day filing and the other six doing more exciting tasks. The result is higher job satisfaction and better performance.

It enables job enrichment.

This step focuses on taking a regular job and adding additional tasks and assignments to make it a better job. Instead of focusing on making things as easy as possible, job enrichment makes it more motivating. Job enrichment can give purpose to the job. While the job characteristics model comes from the 1970s, it is still very timely. Younger workers place a high value on meaningful work, and job enrichment can do just that. 

Better delegation of tasks.

The job characteristics model uses job design to make jobs better. Jobs are broken down into specific tasks, and employees receive authority to carry those tasks out. This autonomy gives employees more control over their work environment and increases their job satisfaction.

Clear organizational information.

When everyone’s job description is a result of thorough job analysis with clear tasks and responsibilities, it is easier to manage the organization. You can see who is responsible for which duties. It can make general organizational design easier. 

It allows for straightforward performance appraisals and goal setting.

Because each job is designed rather than thrown together, setting goals and evaluating employee performance becomes more manageable in an organization that follows the job characteristics model.

Psychological states and work outcomes

The original development of the job characteristics model searched for how to make jobs better so that employees can be happier and more productive at work. This model can help by affecting the employees’ psychological states. These include:

• Experienced meaningfulness. When an employee feels that they accomplish something of value, meaningfulness is the result.
• Experienced responsibility for outcomes. Using the job characteristics model and giving employees autonomy over their tasks, they can feel responsible for their work. If they accomplish the work successfully, that’s a positive psychological outcome.
• Knowledge of the actual results. In larger companies or siloed organizations, employees often find it difficult to see the consequences of their actions. With good task identity and feedback, an employee can see their impact on the bigger organization.

The updated model defines the following work outcomes:

• Internal work motivation. Employees whose jobs have been optimized under the job characteristics model feel responsible for their work and find it more meaningful. Therefore, their internal motivation increases.
• Job satisfaction. Job satisfaction increases when employees experience autonomy, receive meaningful and timely performance, and feel their work is significant. This, in turn, leads to performance. 
• Work performance. This was a key driver in developing the job characteristics model. The organizational psychologists wanted to increase performance through the careful use of these tools. Evaluating and optimizing jobs for each category improves performance.
• Low absenteeism rate and turnover. Happy and engaged employees are more likely to come to work and less likely to quit. 
• Quality and quantity of work. When applied effectively, this model can increase both the quality and quantity of work and employee satisfaction. It brings out the best results for employees and managers alike.

Job characteristics model examples

Reading about the job characteristics model, you can see its benefits quite clearly. However, it may feel overwhelming to redesign the roles in the entire company based on this model. You do not need to do everything at once–you can start with one job at a time.

Let’s take a look at some examples of how to put the job characteristics model into practice.

1. Primary school teacher

For the primary school teacher, you can increase task identity by dividing the work among several teachers. By having one teacher teach all the second-grade students math while another tackles physical education, they can develop a deeper connection and expertise in their designated area, which not only improves their sense of identity with the tasks but also increases their autonomy.

Furthermore, this specialization can lead to a greater sense of accomplishment and recognition as they see the direct impact of their efforts on student learning and development over the course of the year. That means they have feedback on their work.

2. Fast food worker

For a fast-food worker, you can increase variety by having employees learn each station and rotate through. So, someone may run a cash register on Monday, make sandwiches on Tuesday, and be in charge of the drive-through on Wednesday. This not only prevents the monotony associated with performing repetitive tasks but also increases their understanding of how each station contributes to the overall customer experience.

The variety fosters a more engaging and dynamic work environment, which can boost morale and team cohesion as employees gain an appreciation for their colleagues’ roles and challenges.

3. HR generalist

The HR generalist can have an enriched job when management trusts them to decide how to approach their job. Allowing them the autonomy to make decisions on how best to carry out their responsibilities can lead to more innovative and effective HR practices.

When HR generalists are entrusted with more control over their tasks, from recruitment strategies to employee development programs, they can tailor their approach to meet the unique needs of the organization and its workforce. This autonomy, coupled with the responsibility for significant areas within the organization, enhances their sense of significance and identity within their role.

Furthermore, it provides them with direct feedback on their initiatives’ effectiveness, creating a cycle of continuous improvement and professional growth.

For instance, by pulling from the job characteristics model examples above, you can see how to maximize the model.

There are many different ways to enrich a job. Ask yourself the following questions:

1. Are there tasks that can be combined to give variety?
2. Are there tasks that can be separated and divided among employees to increase variety?
3. Is a siloed function working (everyone on this team makes hamburgers), or would it increase variety, autonomy, and task significance if you had everyone responsible for creating a customer’s entire meal?
4. Is there an opportunity for growth? Are the skills the employee develops with this job applicable to higher-level positions? If not, what tasks can you add to increase these skills?
5. Are you providing proper feedback? Is natural feedback occurring? Allowing employees to see how their work fits into the larger picture can increase the feedback organically.

A final word

The job characteristics model is a practical tool to analyze your organization’s jobs, which helps you improve your jobs, ultimately leading to increased motivation, satisfaction, and performance. It can be a great way to start revising job designs to better align with employee needs and organizational goals.

If you want to future-proof your HR skill set and develop new HR competencies, check out our All You Can Learn Certification Program!

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In this article, we will explain what job evaluation is, discuss key methods of job evaluation, take you through the full job evaluation process, and share some job evaluation examples. Let’s dive in!

Contents
What is job evaluation?
Benefits of job evaluation
Job evaluation methods
Job evaluation template to download
Job evaluation process: 4 phases
Job evaluation examples
FAQ

What is job evaluation?

Job evaluation is the systematic process of using internal and external data to determine the relative value that specific jobs bring to an organization. This ensures that compensation is commensurate with the worth of individual roles and that each has appropriate entry and performance requirements. 

The goal of job evaluation is to compare jobs with each other to create a pay structure that is fair, equitable, and consistent for everyone. 

Job evaluation is often used for purposes such as:

• Designing competitive and equitable salary range structures
• Determining pay for newly created positions
• Ensuring fair compensation for related positions.

HR is responsible for job evaluation but may partner with a consulting company that conducts the process. In any case, there must be collaboration with leadership teams and workers’ unions or other partners to confirm the evaluation criteria for each position. For instance, these can be working conditions, required skills, degree of difficulty, and supervision needed.

Job evaluation determines the relative worth of a job based on the role itself and not the individual skills of the person performing the job. According to a European Commission report on pay transparency, “(t)he determination of the worth of a job is assessed irrespective of the qualities of the specific job holder.” 

The relative worth corresponds to a ranking, which then corresponds to pay scales (called wage grids). Based on this evaluation, the job is added to the job structure. The resulting structure ensures pay transparency and equity between various groups of employees.

Personal qualities of the job holder, including seniority, education level, and tenure, are rewarded by an entitlement to higher steps within the applicable pay bracket. 

The European Commission actively encourages the use of job evaluation. According to Cordis, which coordinates EU-supported R&D activities, 49% of European organizations in the private sector use a formal job evaluation scheme, with small and mid-sized businesses at less than 3%. This lack of evaluation leads to unstructured wage payment practices and a lack of requirement-based career and skill development for employees.

Check out our Learning Bite to learn everything you need to know about the Job Evaluation.

Job evaluation vs. job analysis

Job evaluation and job analysis, though closely related, serve distinct purposes within an organization. While job evaluation assesses the relative value of positions within an organization, a job analysis provides the foundational information necessary for the evaluation. Job analysis determines a position’s duties, responsibilities, and environment, as well as which skills, credentials, tools, and equipment are needed to perform the job.

Essentially, job analysis outlines what a job entails and the environment in which it is performed, serving as a critical input for creating accurate job descriptions. These descriptions, in turn, are instrumental for job evaluation, as they offer a comprehensive overview of each role, enabling organizations to accurately assess and compare the value of jobs to the company.

Benefits of job evaluation

While job analysis is a resource-intensive process, it’s worth investing in for the following reasons:

• Ensures fair and equitable compensation: Job evaluation helps establish a compensation system that is fair and equitable, aligning pay with the relative value of each job within the organization.
• Helps create competitive salary structures: By assessing the worth of different roles, organizations can design competitive salary ranges that attract and retain talent.
• Promotes pay transparency: The process contributes to pay transparency, making it clear how salaries are determined and reducing the potential for disputes over pay equity.
• Streamlines payroll budgeting: Job evaluation allows you to take a systematic approach for budgeting salaries and wages, helping to manage payroll costs effectively.
• Aids in compliance with legal standards: It helps organizations comply with legal and regulatory requirements related to pay equity and non-discrimination.
• Supports strategic HR management: Job evaluation aligns with strategic HR goals by ensuring that compensation practices support the organization’s overall objectives and culture.
• Enhances employee satisfaction and morale: Fair and transparent compensation structures improve employee satisfaction, morale, and trust in management.

Job evaluation methods

There are a variety of methods for job evaluation, and all of them involve comparisons derived from either qualitative or quantitative data. Qualitative methods draw comparisons from a subjective review of each position’s characteristics. Quantitative methods assign numerical values to each position and depict the comparison in numbers. 

Here is a look at how four common job evaluation methods fall into these two categories:

Each type has its advantages and disadvantages. The qualitative methods are usually faster while the quantitative methods are more objective and account for required skills and responsibilities. The best approach is typically a combination of techniques.

Next to the four above-mentioned methods, market pricing and Hay job evaluation system are also often used to conduct job evaluations.

Following is a brief explanation of six job evaluation methods:

Job evaluation methods are selected depending on organizational size and complexity. The paired comparison method (choosing the more impactful job of a pair, as displayed below) works well for smaller organizations, while a factor comparison or a point method of job evaluation works better for larger companies.

Point factor method in more detail

The point factor method is probably the best-known of all job evaluation methods. On a high level, the steps for this approach are as follows: 

1. List jobs.
2. Define evaluation factors and factor subcategories.
3. Determine scoring degrees on these factors.
4. Assign a weight to each factor.  
5. Allocate points per job for each factor.
6. Define a new wage structure.
7. Adjust the existing wage structure.

Here is what a sample point factor job evaluation method could look like for an individual role:

Once you’ve collected the data for individual jobs, you can create an overview of all the jobs within your organization or a certain department.

Based on that, you can visualize the spread of points and a salary range per job, similar to the image below. Any outliers can be calculated and need to be dealt with on an individual basis, as we discuss in the next section.

Job evaluation process: 4 phases

Implementing a job evaluation demands significant time and planning. While each method has its own procedures, there are some general phases involved in every job evaluation process. We’re outlining the following four phases to guide you through executing an effective job evaluation:

Phase 1: Planning & diagnosis

A job evaluation project starts with an initial workshop to decide on the scope and approach.  

In terms of scope, you need to make decisions on the following:

• How job evaluation will be used to support equal pay
• Cost/budget
• Time constraints
• Degree of rigor applied 
• Who are all the stakeholders?
• Who will be responsible for administration? 
• Data sources, tools, and software
• External help required
• How to build on previous projects

The next decision is which job evaluation method you will use. It’s also important to consider the degree of customization your organization needs for the method. For example: 

• Proprietary. This is an existing framework created by consultants. It has been tried and tested, is easy to implement, and requires low internal effort. The con is that it may not suit every organization and creates dependence on the supplier.
• Customized. This builds upon an existing framework. It provides a good starting point, leads to faster implementation, and helps to create employee buy-in. This may require sufficiently revising a framework that is not entirely suited for the organization.
• Tailor-made. This is a fully customized scheme developed in-house with the help of external advisors. The participatory process leads to buy-in and enables alignment with a competency framework. Although it will be a great fit for the organization, the process will take longer and cost more.

Next comes identifying benchmark jobs, planning the data collection, and forming a communication plan for the job evaluation team. 

Bear in mind that this phase will require multiple meetings to cover everything. Rushed planning can result in more roadblocks and inefficiencies that slow or stall the process.

Phase 2: Design & development

The second phase involves determining which evaluation elements and levels to incorporate as benchmarks. This often happens through a workshop to discuss how various roles impact the organization. 

It is important to identify relatively timeless elements because the job scheme is relevant only for as long as the elements it is based on are relevant. 

Once this is complete, it’s time to collect and analyze data on the different roles in the organization, such as:

• Organizational chart or hierarchy with grade classifications
• Current salaries
• Job descriptions
• Workforce demographics

Phase 3: Validation & modeling

The third phase starts with discussing the collected data and the weightings of the different elements. This may require some fine-tuning as initial definitions often skew the results.

Next comes drafting a pay grade structure and categorizing jobs. It is likely that certain jobs will not fit perfectly within the pay grade structure. For example, these can be specialist roles in artificial intelligence and machine learning that are in demand and crucial for the company’s future. These jobs may have to be ranked higher on the salary scale than their titles correlate with. As qualified candidates for these roles become more abundant in the future, their placement on the pay scale may need to be revised.

Phase 4: Communication & roll-out

The final phase of the job evaluation process is where the new pay structure is implemented. It is crucial to explain to everyone affected why their pay grade may have changed. 

This phase goes smoother when there is buy-in throughout the organization. There should be an opportunity for employees to appeal decisions they perceive as unfair. Investigating these circumstances will help employees feel heard, ensure transparency, and uncover potential discrepancies in the system that need to be remedied. 

As a note of caution, lowering current workers’ salaries is not advisable. This will cause unrest, lower morale, and prompt people to leave the organization. Furthermore, certain wages are protected under labor laws.

Job evaluation examples

There are all kinds of scenarios where conducting a job evaluation is a good idea. Here are three job evaluation examples that demonstrate how it can be put into action.

1. Job evaluation for a merger

When Scotland’s regional and specialist police forces merged, Police Scotland/Scottish Police Authority (SPA) became the second-largest law enforcement group in the U.K. Since each agency came in with its own compensation program, a job evaluation was needed to create a fair and consistent pay and grading system for the combined staff.  

Police Scotland/SPA hired a consultant to conduct the process with the help of a factor-based job evaluation software program. After a thorough assessment of over 800 staff roles, they were able to create an appropriate pay and grading structure. 

2. Job evaluation for recruitment

In this hypothetical example, a mid-sized e-commerce company was struggling to fill entry-level customer service positions that were crucial for its growing business. The hiring managers noted that applicants often desired higher starting pay than was offered. 

The HR director used the market pricing job evaluation method to gather external market data and compare its salaries to those of similar-sized organizations. The comparison showed that their starting salary was roughly 15% lower than average. This information incentivized the leadership team to approve an increase in starting pay and expand the salary range for these roles.

3. Job evaluation for an initial pay structure

In another speculative example, a locally owned landscaping business offered a range of services from lawn maintenance to tree removal. The company was expanding and needed to formalize how employees were paid. Despite handling different responsibilities, most were earning the same hourly wage.  

The owner devised a basic compensation structure by reviewing the typical duties carried out by various employees and classifying them into the following four titles:

1. Specialty team leader
2. Team leader
3. Specialty landscaper
4. Landscaper

These categories were based on the level of responsibility and expertise needed to handle tasks and operate specific equipment. With clarification of what each role contributes, employees were paid appropriately via a justifiable method. 

Over to you

Job evaluation is the basis for making informed decisions about distributing pay effectively and achieving equitable compensation for employees. The process requires a significant commitment of time and resources. However, understanding each role and assessing its compensatory value is well worth the effort.

A transparent and coherent pay structure promotes pay satisfaction by showing employees how they are paid for what they do. It can also increase their motivation to be productive and improve their skills to achieve career growth.

If you’d like to learn more about job evaluation, we recommend the Hay Job Evaluation Manual and the book Job Evaluation by Armstrong and colleagues, which we used as one of the resources for this article.

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