July 16, 2022
25 min read

How to Implement Job Leveling Matrix in Your Company

We can all agree that job satisfaction increases the productivity of workers and/or employees in a company. Most people thrive more and gain satisfaction from their jobs when working in a company with a clear structure and amiable work culture instead of one with a toxic culture and/or vague organizational framework.

According to job satisfaction statistics, about 79% of workers in America agreed that company culture is an important factor in job satisfaction. Beyond the job titles and descriptions, most employees want to have a clear picture of what the company expects from them, how they can add value, their career hierarchy pathway, and the steps they need to take to secure a promotion or advance within the company. This is where a job leveling matrix comes in.

In this article, we will explain what job leveling is and tell you how you can implement a job leveling matrix in your business or organization. Read on if you'd love to learn more.

Table of contents

  1. What is job leveling?
  2. What is a job leveling matrix?
  3. Benefits of job leveling
  4. How to implement a job leveling matrix
  5. Conclusion
  6. FAQ: Job leveling matrix

What is job leveling?

Job leveling is the process of classifying or defining job responsibilities/roles and establishing career pathways/hierarchy within an organization while clearly stating the benefits of each stage. In simple terms, it is a way of assigning specific values to specific roles within an organization.

Job leveling can also be referred to as "job classification" or "job grading"; however, it is not to be mistaken for job descriptions, as job leveling entails more than a position description.

When jobs are not adequately valued and leveled in organizations or businesses, it could lead to different organizational problems like employees feeling less than engaged, compensation expenses for the company where jobs are valued too high, and several other instances.

A proper job leveling system can help you establish your business or company's framework and boost productivity since everyone is aware of what you expect of them and what they need to do to move higher in their career paths.

In addition, you can also include a salary structure showing the salary range for each level in your job leveling process. This way, it can motivate employees to attain more.

What is a job leveling matrix?

It is one thing to set a clear path for your employees, and it is another to set visible measures and tell them what to expect on their way through the path. This is the purpose of a job leveling framework or matrix, and human resources managers often use it to achieve consistency and transparency across all levels of the organization.

Your job leveling matrix is a framework that comprises both job levels and competencies, and it could also include the salary ranges for the level and other additional incentives.

Job levels show the employees the hierarchy of the role. For example, for a Content Writing/Marketing department, the hierarchy may look similar to the list below:

  • Level 1: Content Writing Intern
  • Level 2: Junior Content Writer
  • Level 3: Senior Content Writer
  • Level 4: Content Marketing Manager
  • Level 5: Head of Content Marketing

On the other hand, competencies are skills, knowledge, abilities, behaviors, or any other factor that helps the employer differentiate the performance level of the employees regarding their roles and job responsibilities. Examples of competencies may include the under-listed skills or behavior:

  • Team building
  • Emotional intelligence
  • Conflict resolution
  • Communication skills
  • Adaptability
  • Attention to detail
  • Independent leadership
  • Situational awareness, and so on.

A job leveling structure could highlight the job level alongside the job description and competencies required for specific roles.

These matrices could vary depending on the company's size and its development plan. We know that small businesses' needs differ from larger corporations. We tend to have a proper job leveling structure in more prominent companies than most start-ups or smaller organizations. All you need to do is tailor the job leveling matrix to fit your organization's needs.

Benefits of job leveling

"Why is job leveling important?" you might wonder. The truth is, having a job leveling system in your business or organization is too valuable to ignore, as it can offer you both short-term and long-term benefits. Let's look at some benefits of creating a job leveling structure for your company.

  1. Saves your human resources team time: When your company has a job leveling structure, your HR managers or team won't have to go through repetitive processes to outline job descriptions, role expectations, and job responsibilities every time you employ a recruit. They can use an already established framework for every recruiting process, making adjustments and modifications where necessary as the company progresses.
  2. Saves your company money: When you value a job role correctly, you know what to pay for each job level after market comparisons for the role and other necessary factors. This way, you won't overpay for a position. Also, when your employees feel underpaid for a position, they may leave earlier than expected, making you spend more money to carry out another recruiting process.
  3. Consistency: Having an established job leveling process in your business or company helps maintain consistency and uniformity across all job levels and departments.
  4. Promotes a healthy work culture: Clear organizational structures help promote a healthy work culture amongst employees. Everyone knows what they are supposed to do to add value to the organization, and there are no blurred lines or doubts about every employee's job description.
  5. Boosts productivity: We all know that happy employees are highly productive employees. When employees understand how they can move ahead in their respective career paths, they will get motivated to do their best to achieve their goals.
  6. Transparency: A defined job leveling structure establishes transparency throughout the organization, ensuring uniformity and equity across all levels and roles.
  7. Keep your employees: Encouraging personal developments through a job leveling system will increase your chances of keeping your employees. According to Forbes, 91% of highly engaged employees are less likely to leave for a competitor's company because they are satisfied with the professional development opportunities in their current companies.

These and many more are ways businesses and/or organizations can benefit from having a job leveling framework.

How to implement a job leveling matrix

Many organizations currently have a job leveling process or structure, while others have yet to enforce one. You have seen how having an effective job leveling structure can benefit your company, so now, let's tell you how you can implement an effective job leveling system.

1. Work with a team

If we are being honest, creating a job leveling framework can be time-consuming and stressful for just the human resources manager to do. Therefore it is vital to build a team to help you achieve this goal. Your team can include representatives from different levels and roles in the company, so they can help you develop the framework.

2. Establish levels based on the size of the organization

As we mentioned earlier, the framework you will use will depend on several factors, including the size of your company. Note that the job leveling process for a large enterprise of over 1000 employees will differ from that of a small business of fewer than 50 employees. So depending on the size of your company, goals, and other factors— you should carefully tailor the levels to fit the needs of your business. Some organizations have 4 levels, some have 6 levels, and others have 8 or more.

3. Define roles, responsibilities and expectations

Your job leveling framework should precisely define each role, job duties, and responsibility across all the established levels in the organization. Outline a job, clearly state its title, and determine the level it falls under in your job leveling system. Also, outline the competencies and expectations for the position and its benefits. Do this across all levels of the organization, ensuring consistency and uniformity.

4. Establish growth pathways

Your job leveling structure or framework should identify and establish clear growth pathways for every role. An employee should see how the next level connects to their performance at their current level and how they can advance their career within the organization. For example, a Junior Content Writer should be able to see that they can progress to being a Senior Content Writer and even up to the Head of Content Marketing position level if they perform well.

5. Develop helpful metrics

Just as mentioned earlier, showing them the pathway is not enough. Your leveling framework should also include KPIs that you can use to measure the performance at different levels. This will tell the employees what they need to do, but it will also tell them how they can achieve it, including all the potential challenges they may face.

6. Get feedback

You can share the framework with employees and stakeholders to seek their feedback when you are done. You can get their input through a survey or questionnaire; with Effy, you can get this done within the fastest time possible. Engaging your employees makes them feel valuable, knowing that you carry them along and their contributions matter. You can also do this through one-on-one meetings with them when you need to ask certain questions and get the most out of them.

As the company grows and some roles develop, ensure to make adjustments where necessary to align with the company's goals.

7. Carry out performance reviews

To track the progress of your employees, you can carry out performance reviews from time to time. Let your employees know how they are performing and what they need to do to perform better while referencing the leveling system.

This will boost productivity, but it will also increase self evaluation among employees. You can easily get this done with Effy, as it has a product you can use to efficiently and effectively track your employees' progress

8. Automate your processes with helpful tools

Thankfully, we live in a time where we no longer have to carry out all our duties manually, as we have several tools and software we can use to automate most of our day-to-day activities. Leveraging helpful tools can make your job leveling process easy and efficient. One of such tools you can use to automate and implement your job leveling process is Effy.

Effy is a customizable Human Resource Management (HRM) software for IT companies that can help you automate your HR processes and organize and secure all your employees' personal information.

With Effy, you can quickly perform job leveling processes by automating HR processes like carrying out surveys, building employee profiles, tracking employees' progress, managing their leaves, and storing their data in a secured space without fear of someone else accessing them.

You can also carry out onboarding steps, run 360-degree feedback and hold one-on-one meetings or group team calls with your employees. Effy integrates well with other third-party tools like Slack, Microsoft Teams, Telegram, etc. The system can also help you keep track of projects, teams, and skills.

If you would love to automate your HR processes to achieve your goals faster, you can log on to the Effy website and request a demo to understand how it suits your business needs.

Conclusion

Now you know what job leveling is, its usefulness, and how you can implement an effective leveling system within your organization or business.

We cannot overemphasize the important role it can play in growing your business and making sure your employees are motivated and productive. It's up to you to decide the best way to grow your business and increase revenue.

With the proper structure, you can save time, and money, develop your company & employees and achieve organizational goals.

FAQ: Job leveling matrix

What is job levelling?

Job leveling is classifying and defining job responsibilities/roles while establishing career pathways/hierarchy within an organization and clearly stating the benefits of each stage. Simply put, it is a way of assigning specific values to specific roles within an organization.

What does leveling mean in business?

Job leveling in business is defining and classifying the duties and responsibilities of your staff at the individual positions they occupy in your business. It is simply setting a structure that shows how your workers can progress in their roles while carrying out their duties and doing what you expect from them to advance the business.

What are the 4 job levels?

The levels within companies or businesses vary from one to another, depending on different factors, like the size and needs of the companies. While some may have 5 levels, others may have more than that or even less.

Generally, the 4 widely acceptable job levels are:

  • Level 1: Entry level
  • Level 2: Intermediate level
  • Level 3: Mid-level
  • Level 4: Senior/Executive level

What is salary leveling?

Salary leveling is a structure used to differentiate the many salary ranges for the various job levels in an organization. Most companies have uniform salary structures throughout the different departments of their organization.

Sometimes, this may mean that all Level 1 employees are within the same salary range across various departments. It may be unique to specific departments, other times, based on their duties.

An example of the first instance could be all entry-level employees of an IT firm earning the same salary range, regardless of whether they are in the Software Development department or Marketing department. While an example of the second instance could mean that all entry-level employees in the Software Development team will earn within the same salary range, which may be bigger or smaller than that earned by entry-level employees in the Marketing team.

Who is in charge of implementing job leveling?

Ideally, the Human Resources Manager or team are usually in charge of creating the job leveling framework and seeing how they implement it throughout the organization.

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