Are Your Job Descriptions Your Achilles Heel? Presented by Don Berman, HRTMS

1. Are Your Job Descriptions Your Achilles Heel?Presented by Don Berman, HRTMS

2. Presenter – Don Berman Don BermanVP Client Services - HRTMS Since 1989, Don Berman has spearheaded the introduction and adoption of HR and talent management applications and technology driven best practices at large and mid-sized companies throughout the U.S. As co-founder and Client Services Leader at HRTMS, Don has helped numerous organizations take control of their job descriptions.

3. Why Manage Job DescriptionsA Critical Issue For Strategic HR/Compensation • Identify and retain top performers • Identify and manage bottom performers • Benchmark/Evaluate jobs to compensate employees fairly • Motivate employees with engaging Career Paths • Protect your company from regulatory sanction FLSA, ADA, Equal Pay Evaluate employee productivity & performance • Protect your future with • effective succession plans Develop an equitable salary structure • Identify Employee Training Gaps Recruit the right people A clear understanding of the Job is Requiredto:

4. https://zdoc.site/managing-an-organizations-largest-cost-the-saba-software.htmlhttps://zdoc.site/managing-an-organizations-largest-cost-the-saba-software.html ROI of Knowing Your Jobs Other Outdated Duplication Inconsistent Format Inconsistent w/ actual duties of job Somewhat Satisfied w/ JDs http://www.hrtms.com/blog/survey-says • In most organizations, total human capital costs, average nearly 70% of operating expenses. • Yet in a 2018 Conduent survey NOT one company surveyed was completely satisfied with their job description and only 28% said they were some-what satisfied.

5. ROI of Knowing Your Jobs JOB DATA JOB DATA • Job data is a foundational element • Job information is the cornerstone of what we do: • Human Resources • Talent Management • Compensation Where do we keep this critical dataset? THE JOB DESCRIPTION

6. Job DataCentral to HR/Talent Management YourSystems Your Processes • A Robust up-to-date job description repository can ensure that all aspects of your HR and talent management activities are reading from the same play book. Compliance FLSA, ADA, FDA, Joint Commission Career Pathing Succession Training Performance Management System/ Process Compensation Plans & Salary Structure Job Description ATS/Recruiting Process Corporate Culture Future Plans

7. Customers Include:

8. HR Technology Expenditures • Spending on HR Technology increased by > $1B last year Estimated Expenses for a 5,000 Employee Company What is the potential cost of not Managing Job Information?

9. What’s The Risk? Inaccurate, out-of-date Job descriptions have real impact on: Acquisition ---Productivity--- Regulatory Risk --- Compensation • Companies invest in other HR areas but very little, if anything, on the foundation. • A clear understanding of each job is required to do just about everything we do in HR. • Weak job descriptions = compromised HR initiatives Bottom Line: The days of managing Job Descriptions in Word docs via email are over!

10. What’s The Risk? • What is the real cost of executing these poorly? • Talent Acquisition • Employee Engagement Productivity • Talent Retention • Compensation • Compliance • FLSA • ADA • Equal Pay

11. What’s The Risk? • For each area we will cover: • What is the Risk? • Why job descriptions are important? • What can you do? • What are JDXpert clients doing?

12. What’s The Risk: Talent Acquisition • Businesses rely on people • Total human capital costs nearly 70% of operating expenses so it is important that we are hiring the right people! • The average cost-per-hire is $4,129 • Average time to fill a position is 42 days* • 80% of employee turnover is due to poor hiring decisions • 36% of new hires fail within the first 18 months * SHRM’s Human Capital Benchmarking Report.

13. Talent Acquisition: Costs Of A Bad Hire • It costs on average one-third of a new hire’s yearly salary to replace them • In some cases, it can cost as much as five-times a bad hire’s annual salary to replace them • And others say that a bad hire can cost you two and one-half times the person’s salary • There are clearly significant costs associated with a bad hire

14. Talent Acquisition & Retention: Calculating The True Cost Of A Bad Hire • Intangible costs of a bad hire: • The cost of hiring a new employee (advertising, interviewing, screening) • Cost of onboarding • Lost productivity • Lost engagement • Customer service and errors • Training cost • Cultural impact

15. Talent Acquisition: Why Job Descriptions Are So Important • 36% felt the top factor leading to a failed hire, aside from performance issues, is a poor skills match. • Followed by unclear performance objectives (30%). • A clear understanding of work is essential. Recruit the right people http://www.prnewswire.com/news-releases/robert-half-survey-executives-say-poor-skills-fit-most-common-reason-new-hires-dont-work-out-130770988.html

16. Talent Acquisition: What You Can Do • Your job descriptions need to be accurate, up-to-date, and reflect what people actually do. • Capture marketing summaries, organizational summaries, and vetted job data to construct job postings for specific purposes • Automate interface between your Job Information and your ATS.

17. Talent Acquisition: What JDXpert Clients Are Doing • Over 80% of JDX clients have implemented an automated interface with top ATSs. • Background Interface • Attended interface • Realtime interfaces (Workday) • Interview questions • Competencies

18. What’s The Risk: Engagement and Productivity • Productive teams are engaged • Engaged employees result in a higher rate of retention, productivity, etc. • Companies with highly engaged workforces outperform their peers by 147% in earnings per share.* *Gallup

19. Engagement and Productivity: Why Job Descriptions Are So Important • Employees are engaged when they are successful. • Accurate and detailed job descriptions help describe that success. • Job descriptions impact training, succession, knowledge of responsibilities, etc.

20. Engagement and Productivity: What You Can Do • Job descriptions must be consistent with the actual duties and responsibilities of the job • Allow employees to view (and comment on?)their job description • Performance and rewards programs should reflect what’s in job descriptions • Use job descriptions as a guide for PR • Integrate your Job Description Management system with your Performance/Rewards software

21. Engagement and Productivity: What JDXpert Clients Are Doing • About 30% of clients roll out the job description repository to all employees • About 15% of client implement acknowledgements • Employee Job Description Contributions/PDQs • JDX Portal Access from Performance Review Apps • Data integration between JDX/PR Apps

22. What’s The Risk:Talent Retention - Career Paths • Invested employees = forward-thinking employees • Engaged employees require a career path • Incomplete or inaccurate understanding of what people do makes career pathing difficult

23. Talent Retention - Career Paths:Why Job Descriptions Are So Important • Millennials are focused on a rewarding career path • Defining Career Architecture – Enables a coherent taxonomy, salary structure and career ladders   • Career architecture and career ladders require a clear understanding of all roles • Accurate job descriptions are critical • Managing the process in Word is virtually impossible

24. Talent Retention - Career Paths:What You Can Do • Organize jobs into families/sub-families • Organize jobs into a grade/level structure • Share this information with employees so they: • Are aware of their career path • Know how their contribution fits into the organization • Are clear what their career options are

25. Talent Retention - Career Paths:What JDXpert Clients Are Doing • Many client start with Career Architecture projects • More accurate results with in a shorter time • Most use JDX to publish career ladders online • Use revision process to ensure coherent hierarchies

26. Talent Retention - Career Paths:What JDXpert Clients Are Doing • Helps organize jobs • Routes job descriptions/careerladders to appropriate stakeholders for revision and approval

27. What’s The Risk: Compensation • Overpaying 25 employees by approximately 2% = $23,000 and provides little motivation • A 5% salary underpayment is enough to lose key talent, but not enough to motivate marginal employees to leave

28. Compensation: Why Job Descriptions Are So Important • Salary Structures begin with Career Ladders/Career architecture • Benchmarking, grading, leveling jobs, requires a clear understanding of the work people do • For each job, a detailed job description is critically import for market pricing • Inaccurate job descriptions = Inaccurate results

29. Compensation: What You Can Do • Make sure job description are detailed, accurate, and up-to-date • Have job descriptions at hand to help ensure accurate market pricing • Collate job information with market pricing to help validate compensation decisions

30. Compensation: What JDXpert Clients Are Doing • Integration between PayScale MarketPay & JDXpert • In MarketPay you can view a live link to the job description • Helps during benchmarking process • Helps ensure more accurate market pricing • Market pricing results collated with job descriptions in JDX helps validate compensation decisions • Built-in internal equity and point-factor calculations provide context

31. What’s The Risk: Compliance - FLSA Litigation • 2016 had the second-highest number of wage and hour cases ever filed • AND the settlement valuation has more than tripled over the last two years. • The value of the top 10 settlements hit $695.5 million in 2016 • Make sure you classify employees properly

32. Compliance - FLSA Litigation Why Job Descriptions Are So Important • Job descriptions can be used to back classification decisions during a claim • Accurate classification requires a true understanding of the job • Essential function AND percent of time are critical 

33. What’s The Risk: Compliance - ADA Litigation • Overall, EEOC resolved 99,109 charges in 2017 • Secured more than $398 million for victims of discrimination in the workplace • 26,838 were disability cases resulting from claims under the ADA • https://www.eeoc.gov/eeoc/litigation/selected/ada_litigation_facts.cfm

34. Compliance - ADA Litigation Why Are Job Descriptions Important • Essential functions are critical • Physical demands/working conditions provide the physical details and help determine accommodations • Job descriptions written before an employer advertises to fill a job opening can help establish defend claims

35. What’s The Risk: Compliance – Equal Pay • Fair Pay Act - California over 2 years in effect • New York, Massachusetts, Delaware and other states have followed or will • Regulations move from equal pay for equal work to: Equal Pay for substantially similar work. • EEO-1 Report - collection of aggregate pay and hours data was due to go into effect 9/17 • 8/29/17 OMB issued a decision to initiate a review and stay • In Canada Pay Equity is legislated and audits are expanding • https://www.eeoc.gov/eeoc/litigation/selected/ada_litigation_facts.cfm

36. Compliance – Equal PayWhy Are Job Descriptions So Important • Imprecise standards require detailed job descriptions in order to make equal pay decisions • Accurate and up-to-date job descriptions justify and potentially defend decisions

37. ComplianceWhat You Can Do • All – Make sure your job descriptions are accurate • FLSA – Have employees signoff on their job description • FLSA - Be vigilant in applying DOL: Salary Level, Basis and Job Duties test • FLSA - Periodically audit your job descriptions • ADA- Try using more ADA-friendly terminology • All - Verify that everything you list as an essential function, is in fact, essential to the job • All - Ensure that your job descriptions reflect the job, not the person doing the job

38. ComplianceWhat JDXpert Clients Are Doing • For FLSA, Clients: • Validate Essential Functions and Percent of Time with stakeholders • Guide stakeholders in determining Essential Functions/supply compliant content • Ensure that job descriptions are accurate and up-to-date • Have employees signoff on job descriptions • Use online FLSA Determination assistance

39. ComplianceWhat JDXpert Clients Are Doing • For ADA, clients: • Validate essential functions and percent of time with stakeholders • Capture physical demands and working conditions • Capture job description history

40. Compliance – Equal PayWhat JDXpert Clients Are Doing • For Equal Pay, clients: • Produce Job descriptions that justify and potentially defend decisions • Categorize jobs to enable comparisons • Use Similarity Scoring • Use reporting to identify pay equity issues • Implement point factor job evaluation(Canada)

41. Conclusion • Weak job descriptions equal a weak foundation other HR initiatives • Are you risking your company’s business objectives by executing these processes poorly? • Don’t let your job descriptions be your Achilles Heel! • Establish a job description audit process • Collaborate with those who understand the job • Use a technology partner to help manage job descriptions and integrate with other systems • Take full advantage of your job information and let it drive your HR and processes and systems

42. Resources • https://www.shrm.org/about-shrm/press-room/press-releases/pages/human-capital-benchmarking-report.aspx • https://www.psychometrics.com/poor-hiring-decisions-blamed-80-employee-turnover/ • http://insights.dice.com/report/the-cost-of-bad-hiring-decisions/ • http://www.gallup.com/services/190118/engaged-workplace.aspx?utm_source=gbj&utm_medium=copy&utm_campaign=20160107-gbj • http://www.gallup.com/businessjournal/166667/five-ways-improve-employee-engagement.aspx • https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/class-action-wage-and-hour-2016.aspx • https://www.paycor.com/resource-center/dont-be-a-victim-avoid-wage-and-hour-lawsuits • https://www.imercer.com/products/market-pricing.aspx • https://www.eeoc.gov/eeoc/newsroom/release/1-18-17a.cfm

43. Thank You! For more information about HRTMS and JDXpert, visit hrtms.com or email Ashley at ashley@hrtms.com As a thank you for joining us today, click here to download a free copy of our eBook, 10 Ways To Improve Your Job Descriptions