Nicole Fabig-Grychtol and Ralf Hendrik Kleb

Career Models in the Context of Old and New Work Cultures Frankfurt/Stuttgart, April 2019

CAREER MODELS& NEW WORK

Work Culture

Career models in the context of the old and new worldDigitization influences the way we live, how we communicate - and above all how we work. While certain job profiles disappear, new jobs with a future are created.

Work Culture

In the context of Digitization and New Work, previous needs and objectives are being questioned.

Essential questions that companies should ask themselves:

What skills will we need in the future? Which skills/jobs are no longer needed?

Do we have the skills on board? How can we develop the skills internally? Which skills do we have to recruit externally?

What ideas do the employees have about careers and New Work? What expectations do employees have of us as an employer?

Is Human Resources prepared to meet these challenges?

And for this reason in particular, we recommend rethinking the subject of "careers"!This requires understanding the differences between the old and the new world.

Career models in the context of the old and new worldFunctional Structure

WorkCulture

"Today's World"

• Rigid hierarchical leadership/structures

• Parallelism of line, matrix and project organization

• Bundled personnel, technical and methodological responsibility (in a position/person)

• Formalistic, bureaucratic organizational management (job planning and approval)

• Strong job/activity orientation

• Strong orientation to job titles

• Mainly quantitative update of position planning

"New World"

• Functional structure and skill requirements changed as a result of digitization

• Experimenting with new organizational models and work forms

• Heterogeneous business structures ("Dual Operating Models")

• Heterogeneous management structures and roles

• Flexible, fluid organizational forms

• Job family orientation

• Cross-functional organizational forms: Tribes, chapters, squads.

• Strong role orientation (role in a process or roles in different situations)

• Strengthening teams and individual, shared responsibility

• Separation of leadership, subject and method responsibility (distributed among several roles/persons)

• Temporary perception of roles, tasks and responsibilities

Career models in the context of the old and new worldJob Profiles

WorkCulture

• Focus on individual positions/positions

• Classic job, position or task, competence, accountability (TCA) profiles

• Strong task/activity orientation

• Rather generic description of competence requirements with focus on qualification (education, work experience)

• Low flexibility due to high relevance to collective bargaining agreements (orientation towards fixed job characteristics, qualification requirements and indicative examples)

• Low transparency of job/skill requirements

• Formalistic, bureaucratic process of job description and approval

• Differentiation of core competencies and critical skills at company, divisional and job family level

• Skills requirements changed due to digitization

• Significant reduction of the number of job descriptions and positions on reference roles and standard profiles

• Focus on job family specific roles

• Concretisation of job-specific skill profiles

• Skills orientation allows for multiple usability and flexibility of the employees (Second/Third Skilling)

• High transparency of job-specific skill requirements

• Use of industry and job family specific job & skill profile libraries

"Today's World" "New World"

Career models in the context of the old and new worldGrading Structure

WorkCulture

• Grading systems provide the basis for determining job values and job levels and associated HR policies (titles, grades/career levels, remuneration, benefits ...)

• All position/job evaluation systems use identical or very similar evaluation criteria and may differ in scale construction and process

• Focus on job/career levels, career ladders

• High communication requirements due to comparativediscussions

• Analysis and evaluation (mapping) of existing organizational structures and job requirements

• Benchmarking also of new organizational units / structures usually only possible with "old world"

• The hypothesis that the equivalence of the technical/project career path and the management career path is impaired orhindered by strict application of the previous grading systems is mostly shared

• Complement job grades with personal grades as a "valve solution" to increase flexibility and mobility

• Decoupling of collective bargaining rank/classification systems and career understanding/development systems

• Hybrid career models by definition assume the equivalence of management, specialist and project careers

• In the absence of alternative grading systems, the existing systems are "bent" when required / in individual cases

• Focus on competence careers (picture: pie pieces) and skills extension (Second/Third Skilling) instead of career advancement and job levels (picture: ladder)

• A move away from management and organisational structures that are too strongly hierarchical

• Unclear value of changing and new jobs/roles

• Gap between internal job value of new jobs/roles according to job grading and current market value

• Need for a flexible grading system due to flexible organizational forms

• Need for a fast, unbureaucratic grading/approval process

"Today's World" "New World"

Career models in the context of the old and new worldRemuneration Structure

WorkCulture

• As a rule, tariff remuneration is linked to fixed job characteristics, qualification requirements and indicative examples

• Assumption of additional tasks (e.g. deputy, management) is remunerated by fixed functional bonuses

• Pay scale development within a pay scale group usually takes place via automatic annual pay scale development

• Partial "performance-oriented" tariff remuneration possible

• Excempt/executive remuneration is generally linked to company-wide job grading

• With increasing job level/grade, increasingly wide, overlappingpay bands in the excempt/executive area

• The benchmark value of the individual short-term variable excempt/executive remuneration is linked as a percentage to the midpoint of the base pay band or to the employee's actualremuneration

• Supplementary medium- and long-term variable compensation elements are generally linked to higher-level key figures at company or division level

• Appropriate relativization of the remuneration in relation to other important hygiene and motivation factors (visibility, awards, time, degrees of freedom, etc.)

• Little room for manoeuvre in the collective bargaining sector so far

• Attempts at flexibilisation within the framework of works agreements and in-house collective bargaining agreements

• Market-oriented differentiation of the excempt/executiveremuneration bands according to job families

• Replacement of the classic performance management by OKR (Objectives and Key Results) and thereby decoupling the variable remuneration from individual target agreements

• Stronger linkage of variable remuneration to overriding goals and key figures at company, divisional and team level

"Today's World" "New World"

Career models in the context of the old and new worldAssessment/Access Processes

WorkCulture

• Linking of collective bargaining ranking/classification system with career stages

• Vertical, horizontal and diagonal development in the collective bargaining and excempt areas possible through application, simple selection procedure and promotion (focus tends to be on technical and methodological competence)

• When assuming management positions and comparably prominent expert and project management positions, the selection is usually made via assessments (focus tends to be on technical, methodological, social and management competence)

• Annual employee appraisals usually focus on the quality and quantity of task fulfilment as well as on aspects of behaviour outside the field of spezialisation

• Cross-organizational calibration rounds based on performance potential portfolio considerations

• Annoying, bureaucratic promotion and appointment rounds

• Open feedback culture instead of one-sided focus on top-down assessment

• Assessment/feedback focus on skill development and continuous learning rather than promotion/ advancement

• Use of assessment tool libraries and AI-supported processes for skill assessment

• Strengthening of individual learning motivation through the use of gamification elements (e.g. collecting points for skill expansion/certification)

• Matrix-like and newer organizational forms with partly shared responsibilities require multi-rater feedback processes

• Cross-organizational calibration rounds based on multiple feedback results and performance potential portfolio considerations

• Lean, fast staffing processes

"Today's World" "New World"

Career models in the context of the old and new worldPersonnel Marketing/Recruiting

WorkCulture

• Development and maintenance of the employer image (Work-Life-Balance, New Work, ...)

• Multi-/Omni-Channel-Strategy in Personnel Marketing and Recruitment (Print, Social Media, Trade Fairs, Active Sourcing, ...)

• Highlighting the range of education and training opportunities on offer

• Identification of career ladders with a focus on career advancement

• Prevailing advertisement and description of concrete, open positions

• Establishment and maintenance of internal talent pools

• Systematic development of internal and external talent pipelines

• Systematic use of multiple sourcing channels / methods

• Optimized Multi-/Omni-Channel-Recruiting-Strategy based on Touchpoint- and Candidate-Experience-Analysis

• Flexibilisation of the internal labour market, including internal active sourcing

• Greater focus on skills instead of jobs

• Use of an AI-supported applicant assistance system on the career website

• Use of KI-supported recruiting solutions for optimized identification and selection of suitable candidates

• Offer of individual (also virtual, AI-supported) career counseling

• Use of Persona Descriptions in Personnel Marketing

"Today's World" "New World"

Career models in the context of the old and new worldDevelopment/Qualification

WorkCulture

• Development in the collective bargaining sector mainly via collective bargaining ranking/classification system (collective bargaining groups)

• Competence models focus predominantly on generic competences outside the field of specialisation

• External competence requirements are either generally valid or differentiated for managers/employees and, if applicable, for different levels/rankings

• Despite the need for differentiation, skills usually play a subordinate role in career models due to the complexity involved

• PD offers mainly in the form of comprehensive blended learning programmes (online/offline)

• The registration/approval of PD measures is usually the responsibility of the responsible manager

• Job enrichment, enlargement, rotation and mobility are hardly systematically promoted, especially due to inflexible/ bureaucratic tariff regulations

• Strategic, demand-driven and tool-supported skill management(success-critical core competencies, skill requirement shifts, ...)

• Support for employee development and transfers in the event of skill requirement shifts

• Setting up of situation-, demand- and target-oriented Employability & Mobility programs

• Flexibilisation of employee deployment through skill enhancement (Second/Third Skilling)

• Focus on "Continuous Learning" in the conception of development concepts

• Promotion of independent skill development through the use of gamification elements (e.g. collecting points for skill extension/certification)

• Establishment/use of a job taxonomy and competence library with technical and non-technical competences

• Individual, virtual career coaching on the basis of AI-supported skill matches

"Today's World" "New World"

Career models in the context of the old and new worldCommunities/Networking

WorkCulture

• Cooperation and communication takes place primarily in relation to tasks and activities

• Knowledge is power. Systematic knowledge management hardly takes place. Information still flows mainly hierarchically.

• Technical exchange takes place predominantly within the specialist areas / functional silos

• Interdisciplinary project work is increasing and helps to overcome hierarchical and technical (silo) boundaries

• In geographically distributed companies or divisions, it is difficult for employees with expert knowledge to network

• Often little is known about the work of other experts and there are hardly any opportunities for systematic exchange

• The external professional exchange takes place partly via professional associations and increasingly via the social media

• In times of cost pressure, participation in external seminars and conferences is limited or even prohibited

• The flattening out of hierarchies as well as the upgrading and equivalence of specialist and project careers alongside management careers lead to a more direct flow of information

• Modern cross-functional forms of organisation (tribes, chapters, squads) promote professional exchange across the previous siloboundaries

• Job family concepts soften hierarchical structures and promote the formation of expert communities and networks

• Social media, expert wikis, expert blogs, annual competence meetings, regular web and video conferences etc. are standard for the exchange in internal and external communities and networks

• The use of artificial intelligence facilitates the systematization of skill and knowledge management

"Today's World" "New World"

Career models in the context of the old and new worldWork Culture

WorkCulture

• Cohesion of the organization through "One Firm Culture" -promotion of commitment and identification

• Organizational change is primarily the result of incremental changes

• Work culture is characterized by precisely fitting methods and specifications, high control and centralized management

• Promotion of existing relationship patterns and self-confidence

• Flatter, but hierarchical structures characterise the work culture in large parts of the organisation

• Silo thinking and fragmented processes and responsibilities

• In some areas of the organisation, experiments are carried out with newer forms of organisation and work

• Business model-driven organizational and process diversity as well as different area/work cultures

• Employees' connection to (external) communities and networks

• Strong employee focus: positive employee experience as a prerequisite for positive customer experience

• Encounter of the VUCA world with shorter planning and review cycles, increased willingness to experiment and a positive learning and failure culture

• Newer target and feedback processes (e.g. OKR) lead to more transparency, commitment and cross-organizational cooperation - decoupled from remuneration.

• Transformational, inspiring and stimulating leadership

• Personal responsibility of teams and individuals, self-control and organisation, end-to-end responsibility

• Flexible, skill-related development opportunities, self-directed, dynamic learning

• Changed Mind-Set (frame-breaking)

"Today's World" "New World"

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© changeleaders 2019

Place and date of publicationStuttgart/Frankfurt, 04/2019

AuthorsNicole Fabig-GrychtolRalf Hendrik Kleb

Publisherchangeleaders gmbhwww.changeleaders.de

Contactcontact@changeleaders.de