CAREER

Engaging the Workforce in Digital Transformation: A New Model to Enable Your Digital Strategy

21 August, 2018

Antonis Christidis
Partner, Mercer, Career business
Thomas Kochan
George Maverick Bunker Professor of Management 
Professor
Axel Miller
Partner, Oliver Wyman, Organizational Effectiveness & Corporate & Institutional
Vidisha Mehta
Career Solutions Leader, Mercer, South & East Asia, Middle East,Turkey, & Africa

“Companies benefit from designing and implementing technology in a thoughtful, integrated way that engages the workforce.”

Digital transformation is here, and it is affecting companies in various degrees, across a number of industries. For an organization to succeed in adopting technological solutions, they must find ways to engage their workforce in this digital transformation or they will fall behind their competitors.

To help determine the best practice approaches towards advancing digital transformation, we recently interviewed managers and employees at the forefront of the digital revolution. We uncovered two distinct findings. The first finding is that the digital revolution is still in its early stages and has yet to have the profound positive or negative effects that many predicted.

In one way this first finding can be seen as an advantage since our second key takeaway from interviews is that the strategies and processes for managing the technological changes are not yet well developed in many organizations, so problems and risks related to the digital transformation and the corresponding engagement of the workforce remain prominent. If companies want to truly improve their productivity, improve their rate of return and produce positive work outcomes through technology, they must first adjust their management of technological innovations.


A new integrated process for designing the workforce for the future

The traditional management process organizations have followed for years has a very sequential pattern. The digital technology strategy design (defined by managers or vendors) flows into the implementation stage, after which the workforce is trained, and workforce adjustments are made (by HR departments). This approach is reactive and often displays a divergence between business targets and workforce strategies –the HR departments are not involved in the design of the strategy, defined by the managers, while the managers are not engaged in the detail of the workforce strategies defined by the HR departments. While this approach can work in some cases, to prepare for the digital revolution – with its fast-paced and more complex changes – we believe a more dynamic and more aligned approach is necessary.

We propose a new integrated model where processes are interrelated and HR and the workforce itself has input in designing technology solutions. The objective of this process is to link the design of the digital strategy with the design of the workforce for the future, from the beginning. Rather than a sequential approach with definite steps, the whole model functions as a continuous circle, without a concrete beginning or end point.

A fundamental difference for this model is that workforce and HR both have a say in the technological problem definition and solution selection as well as the related workforce adjustments. The belief behind this system is that if we want to improve the workforce of the future, we must leverage their input and shape the digital revolution around their needs.


Five key elements for a successful digital transformation

Companies benefit from designing and implementing technology in a thoughtful, integrated way that engages the workforce. By involving in the early stages of problem definition design workers who best understand the processes that can be improved, streamlined, or even eliminated, companies can avoid the changes and bottlenecks that later add costs, reduce continuous improvements, and inhibit user buy-in. Moreover, adhering to sequential technology design-implementation processes, the “old model,” diminishes further innovations that can put technologies to new, unanticipated uses that increase an organization’s digital capacities. Plus, leaving end users/workers out of the early stages increases the likelihood that the new digital landscape will widen the gap between winners and losers in the digital transformation process.

Our interview findings indicate that a successful digital transformation incorporates the following five key elements in a new, holistic model:

  1. The CDO serves as the system integrator and change process facilitator.
  2. Sufficient workforce training and investments made before the implementation process help to ensure the workforce has the skills and the cultural willingness to work effectively with digital technologies.
  3. Vendors, internal firm managers, and workers jointly define the problems/opportunities that digitization might address.
  4. Consider systemic process changes via AI (pure AI processes but also AI augmenting humans).
  5. Staff closest to soon-to-be-digitized work brought into the design right from the start. Not only consider automation of existing processes but also think about the process itself (and optimize it).

It is imperative for companies to act swiftly so that their organization does not fall behind the best collaborative competitors in their industry.


Deep-dive: The role of the Chief Digital Officer (CDO)

As business operations change and adapt to the digital revolution, the need for a new executive position becomes readily apparent. Enter the Chief Digital Officer (CDO).

The role of the CDO has been created by some companies to design and lead strategic digitization. Yet, some uncertainty surrounds the role’s responsibilities, given inevitable overlaps with the duties of the Chief Information Officer (CIO) and the Chief Technology Officer (CTO). While no two org charts or reporting arrangements look the same, the CDO, in general, should be understood as a more evolved role, combining elements of the CIO and CTO roles to achieve a mandate of overarching digital transformation throughout the organization.

The CDO will need to be a digital integrator. Beyond extensive technical expertise, he or she must also understand operations and organizational considerations. Such a mix of skills will allow the CDO to approach technology from a design perspective and convert data into a strategic asset.

In our findings, we’ve determined that CDOs must have the following three traits to be effective in their role:

  1. 1. They must have curious minds and continuously challenge the way an organization operates, plus direct solutions towards the identified challenges.
  2. 2. They must have advanced technical knowledge so they can select and implement the correct technological innovations.
  3. 3. They must understand technology and human interactions to manage the ongoing integration and change processes of the new technology.

Many organizations have not yet defined the CDO position, choosing to spread the responsibilities across departments and executives. To compete in the digital revolution, however, companies should begin to consider how a dedicated CDO could impact their technical innovations and workforce engagement.


Case Study

THE SITUATION:

A large global utilities player headquartered in Singapore faced disruptive headwinds from both within and outside of their organization. IoT-enablement of plant equipment meant an exponential increase in both the volume and velocity of big-data sets from multiple sources that they were expected to integrate and analyze. This situation was exacerbated by ambiguity around data security, connectivity, access, and ownership. The proliferation of new technologies and the acquisition of new assets (plants) resulted in a situation where the organization had multiple, incompatible platforms. Their organizational structure also raised some red flags. Their information technology (IT) department was viewed as a cost-center and reported into Finance. The IT team comprised predominantly of generalists, while the specialist services were outsourced.

THE SOLUTION:

Mercer was tasked with designing a new structure for the IT department, as part of a broader digital transformation strategy. Part of our recommendations included the creation of the Chief Digital Officer (CDO) role to drive alignment of their IT and operations technology (OT) objectives and teams. The CDO’s role was designed to develop a digital strategy and elevate digital transformation in C-suite conversations, both from an internal (business analytics and decision making) and external (customer facing platforms and interfaces) perspective. One of the key objectives of the CDO’s role was to ensure thatsenior executives not only had a holistic view of the ownership and impact of technology decisions but were also invested in driving the outcomes that would deliver returns from these decisions.

1 Engaging the Workforce in Digital Transformation
https://www.mercer.com/our-thinking/career/engaging-the-workforce-in-digital-transformation.html

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Lastly, the high degree of change to which many organizations across the globe are exposed to, also contributes to incoherent job titles. To be specific, when organizations adopt new structures and amend roles and responsibilities of their jobs, job titling should also be considered. However, for many organizations this is an issue of limited importance of the time of restructuring so this tends to get neglected. As a consequence, especially with numerous rounds of re-structuring, a heterogeneous, incoherent landscape of job titles is likely to emerge. Conducting purposeful job titling   The above-mentioned observations raise the question of how organizations can move forward to actually create purposeful job titles. Meaningful or purposeful job titles usually consists of two key elements. Firstly, purposeful job titling should indicate the actual function and with this associated roles and responsibilities the job incumbent is tasked with. If an employee in Finance is responsible for maintaining the Finance IT systems, then the job title should indicate that this employee looks after IT for Finance, as opposed to more generic IT activities. Secondly, a purposeful job title also indicates the hierarchical level, or, to be more specific, should hold reference to the actual job grade the job has been mapped onto. In our work across the globe, we see a certain degree of inconsistency and incoherence in this respect. Frequently, strict hierarchical levels are used to create job titles, even though the job evaluation may not indicate such job titling. For instance, the responsible job incumbent for managing financials in a country managing set-up of a small to medium sized enterprise owned by a multinational corporation may be called ‘Chief Finance Officer’. This job title indicates a fairly senior position. In reality, however, such a job more closely resembles the activities of a ‘Financial Accountant’ or a ‘Finance Manager’. Such discrepancies between the actual roles and responsibilities of a job and its titling typically become clear when job evaluations are performed. As such, we advocate a certain adherence to job grades when it comes to job titling in order to derive purposeful job titles. In Figure 1, we outline how an approach to purposeful job titling could look like. It indicates the main components of a job title, i.e. (a) what the job’s hierarchical level in the organization is, (b) its function or area of expertise, (c) to what organizational unit the job belongs, and (d) what the actual scope of responsibility of the job is. For instance, a ‘Senior Vice President Finance EMEIA’ uses the elements A, B and D of the framework. Element C, the organizational unit, in this case is not required. For professional jobs, as another example, an ‘Advisor Finance Downstream Abu Dhabi’ would have all elements in her or his job title. This way, the same protocol and nomenclature for different job titles is applied universally across the organization, and thereby meets the requirements of purposeful job titling set out above.                           Figure 1: Mercer’s Purposeful Job Titling Framework In addition to adopting such a framework, organizations should consider who owns and governs job titling. The governing department should make sure that there are employees who have ownership of this process, and that no job requisition and its related activities as well as any internal re-structuring fails to comply with the framework. This way, purposeful job titling gets embedded and institutionalized in the organization. Sources: 1. 2017, ‘The talent delusion: why data, not intuition, is the key to unlocking human potential’, Tomas Chamorro-Premuzic, Piatkus. <a href="#"> 2. 1994, ‘Human resource practices: administrative contract makers’, Denise M. Rousseau and Martin M. Greller, Human Resource Management, 33-3, page 386. <a href="#"> 3. 2005, ‘Understanding psychological contracts at work: a critical evaluation of theory and research, Neil Conway and Rob B. Briner, Oxford University Press.<a href="#"> 4. Ibid. <a href="#"> 5. For an interesting review see: 2019, ‘The five pillars of self-enhancement and self-protection’, in the Oxford handbook of human motivation, Constantine Sedikides and Mark D. Alicke. <a href="#"> 6. For a good overview please refer to: 2001, ‘The role of justice in organizations: a meta-analysis’, Yochi Cohen-Charash and Paul E. Spector, Organizational Behavior and Human Decision Processes, 86-2.

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Mercer's Global Talent Trends 2019 report explains, &quot;In an environment where knowledge is widely and freely accessible, the corporate learning function must shift its focus to continue adding value. Curated learning is not new; what's changing is how it is being used to shape content relevant to a particular ambition, close a known skills gap, or build connections among peers who can share expertise.&quot; Employers can leverage digital experiences to address the uniqueness of each employee's goals, talents and learning styles. Online web portals, smartphone apps and other digital training materials can be customized according to the user's preferences, skill sets, learning ability and career goals. These digital experiences offer employees the chance to learn at their desired pace and develop skills that will lead to greater responsibilities and opportunities to advance their careers and income. The same Mercer reports explains that, &quot;When curated learning works well, people stay and progress through the organization because their learning helps them accelerate their career.&quot; The Digital Transformation of Human Resources   Robust benefits portals, personalized training and educational digital experiences are only a few hallmarks of how digital transformation is revolutionizing human resources in Brazil. By creating digital tools that map and guide an employee's developmental journey, businesses can also better understand the overall health and value of their workforces. Cloud-based systems that use Software as a Service (SaaS) models are creating unprecedented transparency within the employer-employee relationship. However, for large multinational companies in Brazil, implementing these resources can be exceedingly difficult. Legacy systems, aging applications, technical incompatibilities and unintuitive interfaces pose serious challenges to effective implementation. Finding ways to navigate these technical obstacles is critical to future success. Digital transformation is redefining the roles and capabilities of HR departments and revolutionizing workplace cultures. Skilled, upwardly mobile workforces are not only more productive and add value to the bottom line, but also provide businesses with effective ways of differentiating their brand, services or products from competitors — a key advantage in competitive marketplaces. Employees who feel engaged, listened to and valued make their employers more competitive. Mercer's HR 2025: Talent, Technology, and Transformation Magazine elaborates, &quot;Organizations typically pore over compensation and benefits numbers. Yet it is often the actions beyond salary — such as promotions, transfers and healthcare spend — that have a greater impact on business outcomes. Understanding which elements make a company competitive, and which are differentiators, can go a long way in delivering an employee value proposition that resonates.&quot; By investing in the futures of employees and their careers, employers in Brazil are also investing in their own long-term success.

Continuing Business When Business Continuity is Interrupted
Kate_Bravery Kate Bravery |26 Mar 2020

As with all unforeseen threats, COVID-19 is prompting individuals, small- and medium-sized enterprises, and large corporations to reevaluate habits that have long gone unchallenged. The outbreak is stress-testing our resolve and our resilience. Those that will emerge fighting fit will balance tough economic decisions with empathy. For, while the pandemic remains foremost a human tragedy that requires constant vigilance and swift action, thoughts about the way we work are also coming to the fore. Who can work remotely? Do we really need that conference? How can we make virtual meetings more engaging, inclusive and productive? How ready are we to embrace digital working? Even before the crisis, one in three employees said they were anxious about job security, data from Mercer’s forthcoming 2020 Global Talent Trends Study reveal. The novel coronavirus will do little to calm those fears. And so, while organizations prepare to ensure business continuity in response to different scenarios, we find ourselves needing to experiment with new work patterns. Companies ahead of the curve will be those that place empathy at the heart of their mandate. It is the balance of empathy and economics that will win in an evolving and unpredictable world — in other words, companies that care enough to put people and productivity metrics side by side, both while confronting COVID-19 and its economic fallout, and further ahead as they build better, brighter futures. This year’s forthcoming Talent Trends Study points to how companies can respond to the pandemic and focus on what matters by applying the new decade’s empathetic imperative. Commit to stakeholders &nbsp; With the vast majority of business leaders (85%) agreeing that an organization’s purpose goes beyond shareholder primacy, now is the time to match actions with words and make decisions with empathy and equity for all stakeholders. This includes supporting supply chains and the economies that rely on the company. For example, Microsoft has committed to paying normal hourly wages to non-employees (such as bus drivers and cafeteria workers) whose pay might be interrupted by the many Microsoft employees working from home. Another imperative is to provide a sense of security and trust. Indeed, trust is a significant factor in employees’ sense of thriving. The 2020 study found that thriving employees are seven times more likely to work for a company they trust to prepare them for the future of work and twice as likely to work for an organization that is transparent about which jobs will change. Building a strong community around a common purpose and sharing the vision is vital to communicating that the company cares and has a plan for different scenarios. How employers respond to well-being issues like stress, burnout, and uncertainty will be a hallmark of their attitude towards responsibility and sustainability And as people worry about their health, this is the time to confirm the organization’s commitment to well-being. Calm messaging, employee assistance, and mental health apps all have their place day-to-day. It also may be prudent to reexamine the relevance of company benefits: virtual yoga sessions or discounts for online shopping might become highly valued. The good news is that 68% of employers are likely to invest in digital health in the next five years. And if the pandemic lasts for a long time, fundamental issues of well-being will be at stake. Epidemics are historically associated with a rise in depression and anxiety. And this year a clear majority of employees said they feel at risk of burnout before 2020 even got started. Are employees’ partners covered by income protection? Do benefits extend to family members? What financial advice is on offer? For instance, outdoor retailer REI has modified its paid leave policy to guarantee the income and benefits of employees who miss work or have to care for family members. All these need to be communicated clearly. How employers respond to well-being issues like stress, burnout, and uncertainty will be a hallmark of their attitude towards responsibility and sustainability — a critical attitude given that 61% of employees trust their employer to look after their health and well-being. Kick start skills &nbsp; Executives are swiftly adopting future of work strategies to compete in response to a possible economic downturn. If macroeconomic conditions continue to be unfavorable, companies see this as an opportunity to double down on new ways of working such as strategic partnerships (40%), using more variable talent pools (39%) and investing in automation (34%). Front of mind is modelling supply and demand under various scenarios and interventions, such as how to manage variable and fixed costs.&nbsp; With the quickened pace of automation, it’s no surprise that executives and employees are reflecting on how this will impact careers. The Mercer study reveals that business leaders rank reskilling as the top talent activity capable of delivering ROI this year, while employees say the #1 factor in thriving is the opportunity to learn new skills and technologies. Yet, for employees the biggest hindrance to learning is lack of time, according to our study. In this respect, the current crisis may offer the opportunity to kick start reskilling. Providers such as General Assembly and edX offer on-point courses and, with potentially more time to spare, employees can take advantage of online learning to explore new directions. But to realize learning’s full benefit, organizations will have to be transparent with employees about the new roles reskilling could lead to. Take the time to have clear career conversations with employees about the skills required to move along a pay range and/or qualify for other jobs within or across departments. People who feel well-informed about their future career path are more likely than others to take up reskilling opportunities (83% versus 76%) and are more likely to stay with the company (54% versus 46%). Share what you know &nbsp; In the last five years, HR has moved data up the value chain and seen a significant jump in its use of predictive analytics. This is a major development in the growth and value of workforce analytics. Finally armed with insights, organizations are shifting their focus toward gaining measurable value from analytics and honing their market-sensing and analytics capabilities to enhance talent management practices. But as companies weigh the impact of the disease, are organizations measuring the right things? This year, the study shows 53% of companies are tracking the drivers of engagement, yet insights on training (down 6%) and burnout risk (down 25%) declined in prevalence. Digital ways of working bring more data sets we can mine, but also challenge our models of workplace success. Exploring what metrics are most relevant and sharing them with employees provides insight into productivity inputs in a new remote working and distracted climate. Many employees would be happy to receive meaningful findings and advice on how they are working or on their well-being indicators. Finally, as the workforce science discipline gathers force, it can supply vital forecasting insights to build future business resilience. Key to workforce forecasting is an enterprise-wide culture of experimentation. HR can work closely with executives, finance leaders and data scientists to explore how to mitigate the productivity and well-being fallout of such scenarios. Promote the remote &nbsp; For many organizations, the novel coronavirus has been a wakeup call to the possibilities of remote working and its impact on the employee experience. JPMorgan Chase, Twitter and Sony’s European offices are just some of the many companies asking employees to work from home. The challenge has been that only 44% of companies assess every job for its ability to be done flexibly. So what helps? Thriving employees say the most important factors for successful flexible working are: colleagues that are supportive of people with flexible work arrangements, a company culture that encourages flexibility, and managing performance on results not hours worked. Design thinking with pilot teams working remotely are critical to seeing what needs to change to better suit these times. Still, if not done well, remote working can exacerbate challenges with inclusion, accessibility and emotional support. Some simple tips for staying connected in times of social distancing can help: Inclusive teaming when working remotely requires effort. To make sure every team member’s voice is heard, communicate expectations and agendas in advance, encourage people to be visible on the call, ask people to come with comments/questions, and set up discussions by hangouts and chats in between calls. Pre-brief senior people in your team to be vocal and embracing. Create an informal climate up front with small talk. Remote calls require a redesign of the meeting. As a rule of thumb, halve the time you would allocate for a face-to-face meeting for a call where people are dialing in. Leverage pre-reading to ensure those who are more introverted or reflective feel ready to contribute. Small group preparation and post group actions are vital to building team spirit. Establish new rituals. &nbsp; Take time to address the emotional, not just the practical. Take a few minutes at the start and end of a call to find out how everyone is feeling. Pulse-checking questions people can type responses to in a chat function (e.g. “Use one word on how you feel about what we’ve just shared”) can be a great way to take a temperature check. Communicate that managers are still accessible by phone, even if not in person. Use old and new technology (phones as well as video conferencing services) to stay personal, especially with workers not used to working remotely. Don’t let email (and even chat) be the only way you communicate. The volume can become deafening if not managed. Leverage community sites and project boards to train people in how best to stay connected. In our study, 22% of employees believe that some necessary human interactions have been lost, so finding ways to inject warmth and a bit fun into exchanges is a good idea. &nbsp; The social distancing required in response to COVID-19 has, rightly, got many companies reexamining their digital work experience. Forty-seven percent of executives are concerned about employees’ digital experience — or the energy-sapping nature of not having it. Nearly half of employees believe there is room to improve on digital transformation: 20% of employees today say HR processes are complex, and a further 29% say they have been simplified but still have a long way to go. In the longer term, it will be valuable to revisit the company’s EVP and interrogate how technology-enabled HR processes are today and how capable working tools are with coping with mass remote services. Intermediaries such as ServiceNow, Mercer’s Mobility Management Platform and digital outplacement solutions can help. How we care is how we win &nbsp; Employees are understandably concerned about the health of their families and communities and organizations are quite rightly putting the health of their people first (their #1 workforce concern this year). But financial market volatility, and the impact on individuals’ jobs is a mounting concern that is weighing on people’s minds. Meanwhile, businesses are examining whether their practices are agile enough to withstand unpredictable events such as COVID-19, if they are resilient enough to sustain themselves through this period of hardship, and innovative enough to stimulate demand afterwards. We’re being challenged to do things differently — in companies big and small, on new platforms and with new technology, and we see emerging new ways of caring for one another. And in their wake we will not go back to how we operated before. Necessity breeds innovation. We are on the cusp of new ways of working and living that, if executed well, will build a bright future.

A Way Forward Towards Purposeful Job Titling
Dr._Sebastian Dr. Sebastian Fuchs |26 Mar 2020

Everyone’s job has, in some form or another, a job title. Be it a Brick-layer, Accountant or CEO. The common understanding is that the job title depicts the respective job and its roles and responsibilities. Our work with different clients of different sizes, with different structures, maturity levels, and in different economic and cultural environments, however, suggests that there is much more heterogeneity in job titles than one would suspect. In one organization, for example, an Accountant is called ‘Financial Advisor’ whereas in another organization, s/he is called ‘Finance Officer’. In Mercer’s 2019 Global Total Remuneration Survey, on a sample of 182 organizations based in the United Arab Emirates, as an example, the Mercer Job Library position ‘Accountant–Experienced Professional’ is tagged against more than 180 different job titles. This suggest that more than 99% of organizations included in the data set label this type of job in a unique, idiosyncratic manner. In a similar vein, Mercer’s 2019 data from Australia shows more than 360 different job titles across 313 organizations. A similar report for India from 2019 shows over 520 different job titles across 360 organizations for this type of job. In Brazil, Russia and the UK, the same analyses produced very similar results. This means, to be specific, that similar jobs even in the same organization are often labeled in a heterogeneous, unconcerted way. Problems associated with purposeless job titling   While the Accountant example provides some insight into the actual responsibilities of the role, we often see organizations labelling jobs in less meaningful, purposeless ways. For instance, we find job titles such as ‘Senior Supervisor Financial Accountant’, ‘Business Analyst’, ‘Finance Executive’ or, more recently, creative titles such as ‘Accounting Guru’, ‘Accounting Ninja’ or ‘Accounting Rockstar’ in this area of organizational life. In our view, this creates five key issues: 1.   In markets that are suffering from employee disengagement, the rise of passive job seekers and a growing appeal of self-employment and entrepreneurship[1], a job opening with an inaccurate job title faces two key problems. Firstly, the job applicants may be over or under qualified for the position at hand and, secondly, potentially suitable applicants may not apply as they believe the job is not a good match. 2.   Breaches of the psychological contract between employees and their employer may occur. To be precise, “the psychological contract encompasses the actions employees believe are 1.      expected of them and what response they expect in return from the employer”[1]. To this end, a purposeless job title may provide an inaccurate view on the actual roles and responsibilities to be performed by the new joiner. For instance, a ‘Financial Advisor’ may execute on the classical accounting tasks, such as processing accounts receivable and payable, but the job title, however, indicates that the job holder would spend some time interacting with stakeholders and provide advice on financial matters. The lack of defined possibilities to engage in such activities may constitute a psychological contract breach, leading to cynicism towards the organization, turnover, job dissatisfaction, reduced commitment and an overall decrease in performance. 3.   Another important issue to consider is an employees’ propensity to boost their current job title. This is linked to two mechanisms. Firstly, boosting one’s job title ultimately serves to enhance one’s status and self-identity[1]. Secondly, an enhanced job title is likely to attract attention on the external job market. 4.   Perceptions of fairness may decrease due to inconsistently labelled jobs. For instance, a job may be called ‘Finance Lead’ that is, in terms of roles and responsibilities as well as qualifications required, very similar to a ‘Head of Finance’. For most people, a ‘Head of Finance’ is classified as a higher ranked job despite both jobs being very similar in nature and potentially having the same job grade. This can create perceptions of injustice leading to employee turnover, lower levels of extra-role behavior and greater levels of withdrawal, deviant and retaliatory behaviors[2]. 5.   Purposeless job titles may also be detrimental for internal and external communications. Internally, there might be a certain degree of ambiguity to what the hierarchy level of a an incumbent is and consequently how messages should be phrased. Externally, purposeless job titles may further lead to misunderstandings in terms of authority levels and responsibilities an employee holds. Reasons for purposeless job titling   The reasons for these five issues are manifold. First and foremost, only few organizations seem to have adhered to a coherent, up-to-date and intuitive job titling framework. In fact, in many organizations job titling is either left to the line manager or, in some cases, left to the job incumbent. This, by definition, is likely to create a certain degree of heterogeneity among job titles. In addition to that, even in leading organization, there is often no clear, well-defined organizational process in place to govern this element of organizational life. We advocate, and outline in greater detail below, that there should be a process in place including clear roles and responsibilities in terms of who sets and ultimately approves the titles of jobs. We also see that organizations often seek to develop job titles that adhere to the specific cultural contexts in which they operate. This, as a consequence, also adds to a certain degree of incoherence in job titling. Lastly, the high degree of change to which many organizations across the globe are exposed to, also contributes to incoherent job titles. To be specific, when organizations adopt new structures and amend roles and responsibilities of their jobs, job titling should also be considered. However, for many organizations this is an issue of limited importance of the time of restructuring so this tends to get neglected. As a consequence, especially with numerous rounds of re-structuring, a heterogeneous, incoherent landscape of job titles is likely to emerge. Conducting purposeful job titling   The above-mentioned observations raise the question of how organizations can move forward to actually create purposeful job titles. Meaningful or purposeful job titles usually consists of two key elements. Firstly, purposeful job titling should indicate the actual function and with this associated roles and responsibilities the job incumbent is tasked with. If an employee in Finance is responsible for maintaining the Finance IT systems, then the job title should indicate that this employee looks after IT for Finance, as opposed to more generic IT activities. Secondly, a purposeful job title also indicates the hierarchical level, or, to be more specific, should hold reference to the actual job grade the job has been mapped onto. In our work across the globe, we see a certain degree of inconsistency and incoherence in this respect. Frequently, strict hierarchical levels are used to create job titles, even though the job evaluation may not indicate such job titling. For instance, the responsible job incumbent for managing financials in a country managing set-up of a small to medium sized enterprise owned by a multinational corporation may be called ‘Chief Finance Officer’. This job title indicates a fairly senior position. In reality, however, such a job more closely resembles the activities of a ‘Financial Accountant’ or a ‘Finance Manager’. Such discrepancies between the actual roles and responsibilities of a job and its titling typically become clear when job evaluations are performed. As such, we advocate a certain adherence to job grades when it comes to job titling in order to derive purposeful job titles. In Figure 1, we outline how an approach to purposeful job titling could look like. It indicates the main components of a job title, i.e. (a) what the job’s hierarchical level in the organization is, (b) its function or area of expertise, (c) to what organizational unit the job belongs, and (d) what the actual scope of responsibility of the job is. For instance, a ‘Senior Vice President Finance EMEIA’ uses the elements A, B and D of the framework. Element C, the organizational unit, in this case is not required. For professional jobs, as another example, an ‘Advisor Finance Downstream Abu Dhabi’ would have all elements in her or his job title. This way, the same protocol and nomenclature for different job titles is applied universally across the organization, and thereby meets the requirements of purposeful job titling set out above.                           Figure 1: Mercer’s Purposeful Job Titling Framework In addition to adopting such a framework, organizations should consider who owns and governs job titling. The governing department should make sure that there are employees who have ownership of this process, and that no job requisition and its related activities as well as any internal re-structuring fails to comply with the framework. This way, purposeful job titling gets embedded and institutionalized in the organization. Sources: 1. 2017, ‘The talent delusion: why data, not intuition, is the key to unlocking human potential’, Tomas Chamorro-Premuzic, Piatkus. <a href="#"> 2. 1994, ‘Human resource practices: administrative contract makers’, Denise M. Rousseau and Martin M. Greller, Human Resource Management, 33-3, page 386. <a href="#"> 3. 2005, ‘Understanding psychological contracts at work: a critical evaluation of theory and research, Neil Conway and Rob B. Briner, Oxford University Press.<a href="#"> 4. Ibid. <a href="#"> 5. For an interesting review see: 2019, ‘The five pillars of self-enhancement and self-protection’, in the Oxford handbook of human motivation, Constantine Sedikides and Mark D. Alicke. <a href="#"> 6. For a good overview please refer to: 2001, ‘The role of justice in organizations: a meta-analysis’, Yochi Cohen-Charash and Paul E. Spector, Organizational Behavior and Human Decision Processes, 86-2.