Job Architecture in the Boundaryless World
Activating Career Paths, Mobility, and Pay Equity
through Modernizing Job ArchitectureJob Architecture in the Boundaryless WorldIn the rapidly changing landscape of the 21st century, characterized
by global connectivity, digitalization, and the surge of remote
work, the relationship between organizations and their employees
is undergoing a profound shift. Employees are clamoring forincreased transparency and a deeper sense of ownership in theirroles, while organizations are striving to enhance their ability topredict workforce supply and demand more effectively throughskills. Furthermore, the significance of achieving equity in rewards
has arisen as a pivotal element in bolstering diversity, equity,and inclusion initiatives.
As businesses grapple with these transformative forces, theimportance of job architecture has never been more pronounced—
job architecture serves as the blueprint that organizations use tostructure roles to build clear career paths and define equitableand fair rewards. A well-defined job architecture is also essential toconnect skills in demand and ultimately strengthen talent strategies.

The Rise of a Skills-Based Job Architecture
In response to evolving worker demands, a pivotal shift is occurring,a shift towards skills-based talent practices. This movement
recognizes that traditional jobs and titles can be limiting. A
staggering 93% of organizations believe moving away from jobcentric structures is crucial for their organization’s success, andorganizations that effectively adopt skills-based models unlock theirworkers’ potential, leading to enhanced value creation by 52%1.
Yet only 20% feel prepared to embrace this transformation1—
highlighting a substantial readiness gap, given that this transitionmeans profound changes in their strategic approach, operational
processes, and organizational culture, which could potentiallydisrupt their existing workforce and services.
This is precisely why the concept of a skills-based job architecture,
which harmonizes activities and tasks within jobs with employees’skill sets, capabilities, and corresponding proficiency levels, hasarisen as an innovative solution that connects the realms of job
architecture and a skills-based talent model. A skills-based jobarchitecture not only enhances productivity and efficiency but also
fosters innovation, underpinning a dynamic, skill-driven approachthat empowers individuals and optimizes their contributions
through the organization’s job architecture.
Additionally, in the event of labor shifts, similar to that of theGreat Resignation, a skills-based job architecture can alleviate
discrepancies between talent supply and the work to be done,
by providing a more holistic and accurate view of skills thanorganizations already possess. Organizations can then more nimbly
redeploy that talent to more optimized jobs.

122023 Deloitte Global Human Capital Trends; The organization of the future https://www2.deloitte.com/us/en/insights/focus/human-capital-trends.html

Job Architecture in the Boundaryless World

Implementing a Skills-Based Job Architecture
So how do organizations activate a skills-based job architecture?
This will require a data-driven, new way of looking at their talent.
Organizations will need to begin a mindset shift as witnessed
during the Great Resignation to define and link skills required toaccomplish the work, rather than simply developing rigid job titles
or skills without a structured framework linking the two. Ultimately,
this skills-based evolution must begin with a well-defined job
architecture, to which the skills are then linked.
Organizations that Deloitte helped design and launch their skillsbased job architecture successfully first aligned their talent strategy
to clarify how this new framework would fit within existing talent
programs and to create unconventional talent pool acquisition,
retention, and development strategies. These organizations enabledcareer movement, both lateral and vertical, based on a structured,
skills-based job architecture. Both leadership and employees
learned to think about business objectives and goals, rather thanfocusing only on specific tasks within their own departments. It is
crucial to carry this mindset into a company culture that encourages
employees to reskill and upskill to build their own career paths.

3Skills-based talent models form the foundation for "TalentMarketplaces" which foster internal employee mobility. Withinthese marketplaces, employees are empowered to explore
job opportunities tailored to their distinctive skill sets. Data
will play a critical role in this new form of job architecture. To
ensure that employees’ latest skills are accurately aligned to theirwork, organizations should consider utilizing AI and prevalentmarket data to maintain the quality and integrity of a skillsbased job architecture.
A data-backed approach and transformation will allow companies tofully unleash the potential of employees and create more dynamic,
unconventional career paths.

Job Architecture in the Boundaryless World

Job Architecture for Market-Based Compensation
and Pay Equity
The 2023 WorldatWork & Deloitte Compensation Structure Policies& Practices report confirmed that market-based structures havegrown in prevalence, reaching 65%—a 10% increase since 20192. As
market-based compensation structures continue to be popular, jobarchitecture also continues to be increasingly critical as a guideline
to align market-based compensation data to jobs.

On the other hand, as employees have increasing choice andinfluence, they are starting to demand mutual benefits from theuse of data. Tapping into real-time job and related skills data will
help organizations stay on top of emerging trends and respondquickly to the needs of businesses and employees. Data is no longer
supplementary in job architecture. Rather, it serves as a crucial
tool to help employees and organizations understand the market
directions and future-proof strategies.

In addition to market competitiveness, the dynamic workforce now
actively seeks equitable experiences and greater transparency. This
growing desire and insistence from employees drives employers
to design and manage talent programs with a strong focus onequity. One prominent area that both employees and employers
are focusing on is pay equity, a principle ensuring that employees
receive fair compensation for their work, regardless of their gender,
race, ethnicity, or other characteristics.

In addition, maintaining and handling data ethically andtransparently is important. By keeping employees aware of what
data is being tracked and why, employees may be more receptive
to both sharing their data as well as gleaning and acting on insightsfrom the data. According to a recent study published in Harvard
Business Review, 90% of employees are willing to let their employers
collect and use data about them and their work, but only if it
benefits them in some way3.

An accurate and structured job architecture is indispensable whenit comes to accurate pay equity analyses. Defining similar type roles
for cohort development and comparisons is a foundational firststep in your pay equity assessments. Without a comprehensive jobarchitecture, defining the various roles and their respective levelsof contribution and similarities can become arduous, creating a
potential breeding ground for unintended bias and inequities.

In a time where purpose and value-driven work are championed
and pushed to the forefront, embracing new technology and ways
to wisely use new tools to harness the power of data will allow
organizations to create effective workforce planning strategies andmeaningful career paths for employees. Furthermore, employees
will feel their developmental efforts, such as upskilling or reskilling,
can make a tangible impact as they see their updated skills
dashboard, the system making suggestions of other jobs within theorganization that align better with the new skills they learned, and soon. Utilizing technology and data to better understand employees’interests and skills allows organizations to help employees develop
a “shared journey, shared outcomes” mindset1 through the rightlearning opportunities. This will empower employees to adapt toongoing changes and actively maximize and contribute to change.

Empowering through Technology and Data
As organizations venture into job architecture, utilizing technology inthe right way becomes paramount to increase efficiency and reducemanual efforts. The integration of Generative Artificial Intelligence(GenAI) and technology introduces a new layer of complexity
and considerations, requiring open communication about how
technology can enhance job architecture.
Job and skills data from the external market and internal employees
has the potential to produce massive benefits for both organizations
and employees. For instance, GenAI can revolutionize the job
design and implementation process by accelerating tasks suchas job description writing, job matching, and the development offunctions and families.
This not only streamlines effort execution but also exemplifies
GenAI presence in this space, underscoring a commitment tocutting-edge technology.

234Navigating the Future
Supported by enhanced technology and data, transformation of
job architecture accelerates a skills-based organization approach,market-based compensation, and pay equity, while continuing toserve as the foundational data for talent programs to connect, grow,and expedite an organization’s talent strategy.
As organizations embrace the new norm of work, those that strive toadapt to evolving job architecture design and practices will emerge
as leaders in creating a workplace that empowers employees, alignswith market dynamics, and pioneers the future of work.

2023 WorldatWork & Deloitte Compensation Structure Policies & Practices Report
Ellyn Shook, Eva Sage-Gavin, and Susan Cantrell, “How companies can use employee data responsibly,” Harvard Business Review, February 15, 2019, View in Article

Job Architecture in the Boundaryless World

Contact us:
Gregory A. Stoskopf
Managing Director
Deloitte Consulting LLP
gstoskopf@deloitte.com

Kim Rogers
Senior Manager
Deloitte Consulting LLP
kimrogers@deloitte.com

Lucas Watanabe
Managing Director
Deloitte Consulting LLP
lwatanabe@deloitte.com

Sheila Sever
Senior Manager
Deloitte Consulting LLP
ssever@deloitte.com

Mitch Barnes
Senior Manager
Deloitte Consulting LLP
mitbarnes@deloitte.com

Doug Tapp
Senior Manager
Deloitte Consulting LLP
dotapp@deloitte.com

Chris Losak
Senior Manager
Deloitte Consulting LLP
closak@deloitte.com

Renzo Tognocchi
Senior Manager
Deloitte Consulting LLP
retognocchi@deloitte.com

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its
network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independententities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers toone or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States
and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of publicaccounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
Copyright © 2024 Deloitte Development LLC. All rights reserved.