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

2. We help employers and employees understand the right pay for every position and effectively communicate about compensation.
When everyone has the same type of access to pay data, there is huge potential for building employer-employee relationships founded on trust and transparency.
What we believe: Everyone should have access to fresh, accurate salary data and be able to talk about compensation w/ confidence.
What we built: PayScale pioneered the use of big data and unique matching algorithms to power the world’s most advanced compensation platform.
What we enable: Employees and employers use PayScale data and software to make salary decisions, manage compensation and enable better pay conversations.

3. Redefining Job Description Management
A leader in Job Description Management Software on a mission to redefine the way you manage your job descriptions.
JDXpert by HRTMS
Redefining Job Description Management
Before we get into the presentation, I would like to introduce you to HRTMS. HRTMS is software company based in Raleigh, NC that specializes in Job Description Management. They are the creators of JDXpert, the leading Job Description Management System on the market. JDXpert allows HR to easily collaborate with managers to create, maintain and enable a repository of effective job descriptions.
Now, I would like to introduce you to Don Berman, our speaker and Professional Services Leader at 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 Professional Services Leader at HRTMS, Don has helped numerous organizations take control of their job descriptions. Now, without further ado, here’s Don.

4. Don Berman Professional Services Leader - HRTMS
Presenter – Don Berman
Don Berman Professional Services Leader - 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.
Now, I would like to introduce you to Don Berman, our speaker and Professional Services Leader at 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 Professional Services Leader at HRTMS, Don has helped numerous organizations take control of their job descriptions. Now, without further ado, here’s Don.

5. Why Job Descriptions Are Important
Protect your company from regulatory sanction
FLSA/ADA/Equal Pay
Benchmark/Evaluate jobs to compensate employees fairly
Identify and manage bottom performers
Develop an equitable salary structure
Identify and retain top performers
Protect your future with
effective succession plans
A clear understanding of the Job is Required to:
Evaluate employee productivity & performance
Engage employees with motivating Career Paths
Recruit the right people
Identify Employee Training Gaps

6. ROI of Knowing Your Jobs
In most organizations, total human capital costs nearly 70% of operating expenses. While an organization’s total cost of workforce percentage may vary, these costs remain the single biggest organizational expense. 
In most organizations, total human capital costs, also known as total cost of workforce, average nearly 70% of operating expenses. While an organization’s total cost of workforce percentage may vary, these costs remain the single biggest organizational expense.

7. ROI of Knowing Your Jobs
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
In most organizations, total human capital costs, also known as total cost of workforce, average nearly 70% of operating expenses. While an organization’s total cost of workforce percentage may vary, these costs remain the single biggest organizational expense.

8. ROI of Knowing Your Jobs
It’s critical to understand what people do.
Yet NOT one company surveyed was completely satisfied with their job description and only 28% said they were some-what satisfied.
That leaves over 70% who are not satisfied with their job descriptions.
Since employees are our largest expense, shouldn’t we be more aware of what they actually do every day? Thankfully, we have a tool available to us that can help us understand our jobs better. The job description.
Unfortunately, most companies find that their job descriptions are not up to par. According to the latest Compensation Planning Survey conducted by Conduent, NOT ONE respondent said that they were completely satisfied with their job descriptions!.
Although 28% reported being happy with the state of their job descriptions, 24% complained that their job descriptions were inaccurate and 22% said that their job descriptions were outdated.
These findings illustrate that we still have a lot of work to do on improving the way we manage our job descriptions.

9. Why Job Descriptions Lag Behind
People think of them as documents/paper
No one person can complete them
HR knows how to write them
Comp/Compliance know their piece
Managers/Stakeholders know the details of the job
One person responsible for many JDs
Little or no content
No structured way to go about it
Different formats/focus
Cater to the lowest common denominator
Everything else is more important
Recruiting, Performance Reviews, Compensation, Market Pricing
(Despite the fact that none of these can be done well without an effective job description)
No urgency (until you need to hire someone)

10. Job Data (In a perfect world) Central to HR/Talent Management and Compensation
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

11. HR Technology Expenditures
Spending on HR Technology increased by > $1B last year
Estimated Expenses for a 5,000 Employee Company
System
PEPM PUPM
Annual License
Implementation Vendor
Implementation Internal
Total 1st Year
HRMS
$ 8
$ 480,000
$ 240,000
$ 240,000
$ 960,000
Performance
$ 3
$ 180,000
$ 45,000
$ 11,250
$ 236,250
Applicant Tracking
$500
$ 10,000
$ 10,000
Succession Planning
$ 45,000
Market Pricing Data/Tools.
$ 15,000
$ 20,000
$ 80,000
Career Architecture (Career Ladders, Banding Projects) NA
$ -
$ 150,000
$ 120,000
$ 270,000
Total
$ 1,792,500
Maintaining Job Descriptions in Word
???
What is the potential cost of not Managing Job Information?

12. What’s The Risk?
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
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.
By having a weak foundation (weak job descriptions/information), the HR initiatives that rely on accurate job data are being compromised.
Bottom line: The days of managing Job Descriptions in Word docs via are over!
Bottom Line: The days of managing Job Descriptions in Word docs via are over!

13. 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

14. 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?
For today’s presentation, I will go over each area and cover the risk, why job descriptions are important, what you can do, and what JDXpert clients are doing.

15. 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*
* SHRM’s Human Capital Benchmarking Report.
- We rely heavily on our employees, so much so that we have a whole department/industry dedicated to people.
- In most organizations, 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, while the average time it takes to fill a given position is 42 days*

16. Talent Acquisition: Hard Costs Of A Bad Hire
80% of employee turnover is due to poor hiring decisions
36% of new hires fail within the first 18 months
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 hard costs associated with a bad hire
- 80% of employee turnover is due to poor hiring decisions.
- 36% of new hires fail within the first 18 months.
- It costs on average one-third of a new hire’s yearly salary to replace them.
- In some cases, depending on the position, 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
- Whatever the statistic, it’s clear to see that there are true hard costs associated with a bad hire.

17. 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
The reason for so many varying opinions on the cost of a bad hire is due to many factors, including intangible costs. Some of those intangible costs you have to account for are:
The cost of hiring a new employee including the advertising, interviewing, screening, and hiring.
Cost of onboarding a new person, including training and management time.
Lost productivity—it may take a new employee one to two years to reach the productivity of an existing person while at the same time impacting valuable resources.
Lost engagement—other employees who see high turnover tend to disengage and lose productivity.
Customer service and errors—for example; new employees take longer and are often less adept at solving problems.
Training cost—for example, over two to three years, a business likely invests 10 to 20 percent of an employee's salary or more in training 
Cultural impact—whenever someone leaves, others take time to ask why.

18. 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
A survey by Robert Half showed that 36% of 1,400 executives surveyed felt the top factor leading to a failed hire, aside from performance issues, is a poor skills match.
The second most common reason, at 30%, was unclear performance objectives.
A clear understanding of work is essential.

19. 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.
Make sure your job descriptions are accurate, up-to-date, and reflect what people actually do.
Capture marketing summaries and Organizational summaries along with vetted and approved job data and then allow users to sculpt job postings for specific purposes
The easiest way to assure that your Recruitment practices stay consistent with the job descriptions is via an automated interface between your Job Description management system and your ATS.

20. Talent Acquisition: What JDXpert Clients Are Doing
Over 80% of JDX clients have implemented an automated interface with top ATSs.
Background Interface
Attended interface
Interview questions
Competencies
Over 80% of JDX clients have implemented an automated interface.
Taleo, Workday, iCims, PeopleFluent, ADP, Infor, CSOD, BrassRing, Oracle, PeopleSoft, SilkRoad and many more
Background Interface
Attended interface
Interview questions
Competencies

21. 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
We know that in order to have a productive team, you must have an engaged team
Engaged employees result in a higher rate of retention, productivity, customer satisfaction, innovation, employee attendance, safety and quality. 
Companies with highly engaged workforces outperform their peers by 147% in earnings per share.*

22. 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.
Employees are engaged when they are successful.
Accurate and detailed job descriptions help describe that success.
Job descriptions impact training, succession, knowledge of responsibilities, ability to receive constructive performance/feedback, etc.

23. 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
Your job descriptions must be consistent with the actual duties and responsibilities of the job
Allow employees to periodically view (and comment on?)their job description so they know what is expected of them
Make sure your performance and rewards programs reflect the information found in the job description.
Refer to the job description when guiding employees on how to improve their performance.
Integrate your Job Description management system with your Performance/Rewards software.

24. 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
About 30% of JDXpert clients roll out the Job Description Repository to all Employees
About 15% of client implement Employee Job Description acknowledgements
Employee Job Description Contributions/PDQs
JDX Portal Access from Performance Review Apps
Data integration between JDX/PR Apps

25. What’s The Risk: Talent Retention - Career Paths
Invested employees = forward-thinking employees
Engaged employees require a career path
Millennials are focused on a rewarding career path
Defining Career Architecture – Enables a coherent taxonomy, salary structure and career ladders  
Employees invested in their careers are always looking at the next step
Engaged employees require a career path
Millennials, more than others, are focused on a rewarding career path
Defining Career Architecture – Enables a coherent taxonomy, salary structure and career ladders  

26. Talent Retention - Career Paths: Why Job Descriptions Are So Important
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
Career architecture and career ladders require a clear understanding of all roles
Accurate job descriptions are critical content for the process
Trying to manage the process using Word documents is virtually impossible
A Job Description Management System:
Helps organize jobs
Routes job descriptions/career ladders to appropriate stakeholders for revision and approval
Allows career ladder matrixes to be published online

27. 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
Organize Jobs into Families/sub-families
Organize Jobs into a grade/level structure so that there is a clear hierarchy within a job family
Share this information with employees so they are aware of their career path, how their contribution fits into the organization and what their career options are

28. 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
Many client start with Career Architecture projects
JDX enables more accurate results with shorter time to completion
Most Use JDX to publish career ladders online
Use career ladders in revision process to ensure coherent hierarchies as jobs evolve

29. Talent Retention - Career Paths: What JDXpert Clients Are Doing
Helps organize jobs
Routes job descriptions/career ladders to appropriate stakeholders for revision and approval
Many client start with Career Architecture projects
JDX enables more accurate results with shorter time to completion
Most Use JDX to publish career ladders online
Use career ladders in revision process to ensure coherent hierarchies as jobs evolve

30. 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
Overpaying 25 employees by approximately 2% costs your organization more than $23,000 and does little to motivate key employees to stay.
Yet, a 5% salary underpayment is enough to send your key talent to the competition, but not enough to motivate your marginal employees to leave.

31. 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
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 critical import for market pricing.
Inaccurate Job Descriptions = Inaccurate Results

32. 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
Mare sure job description are detailed, accurate, and up to date
Ensure accurate market pricing results by having job descriptions at hand for those involved in the process
Collate job information with market pricing to help validate compensation decisions

33. Compensation: What JDXpert Clients Are Doing
Integration between PayScale MarketPay & JDXpert
An optional field in MarketPay with 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
As partners, we do offer an integration between PayScale MarketPay & JDXpert
You can request an optional field be visible in MarketPay that will allow you to view a live link to the job description
This link helps during benchmarking process by removing the bulky task of reviewing the job description in a separate system or document. You can view the job description right in MarketPay.
This also helps ensure more accurate market pricing because you are able to draw information from the job description of record
It’s also helpful to collate market pricing with the job description to help validate compensation decisions
And built-in internal equity and point-factor calculations provide context
Built-in internal equity and point-factor calculations provide context

34. 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
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, a 50% increase over 2015's $463.6 million valuation, and more than triple the $215.3 million valuation in 2014.
To protect yourself, you need to make sure you classify employees properly.

35. 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 
Although not a requirement, the job description is a central exhibit to back classification decisions during a claim.
To accurately classify jobs you truly need to know what your employees do.
Essential function AND percent of time are critical 

36. What’s The Risk: Compliance - ADA Litigation
Overall, EEOC resolved 97,443 charges in 2016
Secured more than $482 million for victims of discrimination in the workplace
28,073 were disability cases resulting from claims under the ADA
Overall, EEOC resolved 97,443 charges in 2016
Secured more than $482 million for victims of discrimination in private, federal and state and local government workplaces
28,073 were disability cases resulting from claims under the ADA

37. 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
Essential functions are critical to determining if an employee/candidate can perform the job
Physical demands/working conditions provide the physical details behind essential functions and help determine accommodations
The EEOC has said that one of the documents the agency will look at when determining essential functions are job descriptions written before an employer advertises to fill a job opening. 

38. 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
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 standard to:
Equal Pay for substantially similar work.
EEO-1 Report collection of aggregate pay and hours data – 8/29/17 OMB issued a decision to initiate a review and stay
In Canada Pay Equity is legislated and audits are expanding.

39. Compliance – Equal Pay Why 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
Imprecise standards require detailed job descriptions in order to make equal pay decisions. 
A Job Description Management System enables you to:)

40. Compliance What 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
All - Make sure your job descriptions are accurate
FLSA – Have employees Signoff on their Job Description
FLSA - Be vigilant applying DOL: Salary Level, Basis and Job Duties test
FLSA - Periodically audit your job descriptions to make sure the classification still matches the duties and responsibilities of the job. ADA - Try using more ADA-friendly terminology in your job descriptions.
All - Verify that everything you list as an essential function in your job description is in fact, essential to the job
All - Ensure that your job descriptions reflect the job, not the person doing the job.

41. Compliance What 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

42. Compliance What 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
For ADA, clients:
Validate Essential functions and percent of time with stakeholders
Capture physical demands and working conditions needed for determining accommodations.
Capture job description history -  prove vintage of job descriptions to the EEOC

43. Compliance – Equal Pay What 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)
For Equal Pay, Clients:
Produce accurate and up to date job descriptions to 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)

44. 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
If you have weak job descriptions, then you have an ineffective foundation for other HR initiatives (talent acquisition, performance, engagement, retention, compliance, compensation).
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.

45. Resources

46. For more information about HRTMS and JDXpert, visit hrtms.com
Thank You!
For more information about HRTMS and JDXpert, visit hrtms.com
If you would like more information about HRTMS and JDXpert, please go to our website hrtms.com.
And for more information about integrating JDXpert with MarketPay, please contact your PayScale/MarketPay representative.