The Complete Guide to Job Level Classification: Examples, Criteria, and Best Practices

What is a job level classification?

Job level classification is a systematic process of categorizing jobs into different ranks based on the abovementioned criteria.

For example, some typical levels might include:

• Entry-level: These are positions for individuals who are just starting their careers or have minimal work experience—roles at this level usually involve basic tasks and require close supervision
• Intermediate or mid-level: Employees at this level have gained more experience and skills—they might manage smaller projects or teams and have more responsibility than entry-level staff—however, they typically still work under the supervision of more senior employees
• Senior-level: At this tier, employees have significant experience and expertise in their field—they often manage large projects or teams and are responsible for making important decisions within their department or area of expertise
• Managerial-level: This level includes roles where individuals manage teams or departments. Managers are responsible for strategic planning and decision-making in their areas
• Director-level: Directors typically oversee entire departments or divisions and are responsible for aligning their department’s goals with the company’s strategic objectives—they may be involved in high-level planning and decision-making
• Executive-level: This is the highest level, including roles like CEO, CFO, and CTO—executives make organization-wide decisions and set the company’s overall strategy and direction

This process enables organizations to define clear job titles, develop consistent salary structures, and establish career progression paths for employees.

A job leveling matrix forms part of the classification process as a tool to evaluate and assign levels to different roles within the company. It makes a great reference point when assessing or classifying jobs.

What is the difference between job classification and job grading?

Job classification and job grading are often used interchangeably, but there are subtle differences between the two terms.

Job classification groups similar roles based on shared characteristics like job description tasks, responsibilities, and qualifications. The result is job classes or categories with descriptive names like “Administrative Assistant” or “Software Developer.”

Job grading uses numerical or alphabetical grades based on a holistic evaluation that includes factors like skills, responsibilities, decision-making authority, and overall impact on the organization.

This example from Whereby illustrates a 7-part grading system from entry to C-suite, as follows:

• Level 1 = Inaugurate
• Level 2 = Associate I and Associate II
• Level 3 = Partner I and Partner II
• Level 4 = Lead I and Lead II
• Level 5 = Director
• Level 6 = VP
• Level 7 = C Suite

Key components of a job level classification system

Job families and functions

A job family is a grouping of related job roles that share similar functions, responsibilities, skills, and qualifications. Jobs within a family are often organized by the type of work performed, the technical skills required, or the business area they support, though the individual roles may differ in terms of seniority or specific duties.

Key characteristics of a job family:

1. Similar functions: All roles in a job family perform similar types of work or contribute to the same organizational function (e.g., Finance, Marketing, Engineering)
2. Shared skills and competencies: Employees within a job family usually possess similar skills or qualifications, though the depth of knowledge or expertise may differ
3. Career progression: Job families often provide a structured career path where employees can move from entry-level roles to more advanced or senior positions within the same family (e.g., from Junior Accountant to Senior Accountant to Accounting Manager)
4. Job levels: While roles in a job family may differ in complexity and seniority, they share a common set of expectations and career progression pathways. For example, an entry-level role may involve support tasks, while a senior role within the same family would involve leadership and strategy

Examples of job families

Finance job family

1. Junior Accountant
2. Financial Analyst
3. Senior Accountant
4. Accounting Manager
5. Finance Director

Human Resources (HR) job family

1. HR Coordinator
2. HR Specialist
3. HR Business Partner
4. HR Manager
5. HR Director

Engineering job family

1. Software Developer
2. Systems Engineer
3. Senior Software Engineer
4. Lead Engineer
5. Engineering Manager

Criteria for job classifications

There are a lot of nuances involved in job-level classifications, and organizations should take a customized approach to meet the needs of their business and workforce.

However, most will base their leveling on common criteria, such as the following:

• Industry: This criterion considers the specific knowledge and skills required for different sectors, such as healthcare technology, finance, or manufacturing
• Function: Categorizing jobs by their primary function or role within an organization identifies similarities in tasks and responsibilities. Examples include roles like marketing specialist, software developer, or human resources manager
• Competency level: Job classification relies on a competency model to determine the skill level required for a particular role. Positions may be classified as entry-level, intermediate, or senior based on the skills and experience demanded. Similarly, a leadership competency model is integral to managerial job classification
• Employment type: Companies can categorize jobs as full-time, part-time, temporary, or freelance, reflecting the changing dynamics of the workforce
• Organizational level: Job classification often relies on hierarchical levels, including entry-level, middle management, senior management, and executive roles. This reflects the degree of responsibility and decision-making authority associated with each level
• Compensation level: Job classification and compensation are inextricably linked. Different wage levels correspond to job levels based on factors such as skills, experience, and market demand
• Formality: Formal roles often have well-defined job descriptions, while informal roles may involve a broader range of tasks and responsibilities

How to develop a job classification system

Step 1: Conduct a job analysis

The first step in developing a job level classification system is to conduct a thorough job analysis. This involves gathering detailed information about each role within the organization to understand its responsibilities, required skills, competencies, and impact on business outcomes.

The job analysis can be performed through methods such as employee surveys, interviews with managers, and reviewing job descriptions. The goal is to identify the core duties, qualifications, and performance expectations of each position to ensure accurate classification.

Step 2: Define job families and levels

Once the job analysis is complete, group similar roles into job families based on their functions (e.g., finance, marketing, engineering).

After establishing these families, define the job levels within each family. Job levels typically reflect the seniority, complexity, and decision-making authority associated with each role.

For example, entry-level roles may focus on basic tasks and support, while senior-level roles involve leadership, strategy, and broader business impact. Defining these families and levels helps create a structured hierarchy for roles across the organization.

Tips:

1. Start with existing job descriptions: Use existing job descriptions as a foundation for defining job families and levels, but update them to reflect any changes identified during the job analysis
2. Consider career progression pathways: Ensure that job levels allow for clear and achievable career progression within each job family. Clearly define the skills, experience, and accomplishments needed to move from one level to the next
3. Use competencies and impact as key factors: When defining levels, focus on the competencies required at each level (e.g., technical skills, leadership capabilities) and the impact the role has on the organization (e.g., individual contributor vs. strategic leader)

Step 3: Create a job leveling matrix

A job leveling matrix is a tool that categorizes roles and levels based on predefined criteria, such as responsibilities, required skills, education, and leadership expectations. The matrix helps ensure consistency in how roles are classified across the organization.

For example, the matrix might include columns for job families and rows for different levels (entry-level, mid-level, senior-level). By aligning roles with clear criteria, the matrix provides a transparent and objective way to assess job levels and ensure that roles with similar demands are categorized at the appropriate level.

Tips:

1. Design the matrix to allow for future adjustments, such as new roles or changes in organizational priorities. This ensures that the system remains adaptable as the company evolves
2. Make it clear how job levels impact promotions, pay increases, and other benefits so employees understand how they can grow within the organization

Step 4: Validate and implement the system

Before rolling out the job level classification system, it is crucial to validate it with key stakeholders, such as department heads, HR leaders, and senior management. This step ensures that the system aligns with the organization’s strategic goals, compensation structures, and career development opportunities.

Once validated, implement the system by clearly communicating it to employees. Transparent communication is key to gaining buy-in and ensuring smooth implementation across the organization.

Tips:

1. Pilot the system with a smaller group: Before full implementation, pilot the job level classification system in one department or team to identify any gaps or adjustments needed
2. Set clear timelines for implementation: Establish clear timelines for rolling out the system across the organization, including milestones for each stage, from validation to full implementation
3. Create FAQs and support materials: Develop resources like FAQs, detailed guides, and job family definitions to help employees and managers understand the system—make these resources easily accessible through the company’s HR portal

Best practices for your job level classification

Ready to get started? Bear the following best practices in mind as you lay the prep work and build your detailed job-level structure.

Choose relevant classification criteria

Opt for classification criteria that align with your organization’s goals, industry standards, and the unique nature of your work. It’s not just about ticking boxes; it’s about capturing the essence of each role.

For the best mix, consider using both:

• Quantitative criteria: Such as years of experience or specific training certifications
• Qualitative criteria: Such as impact on the organization or level of decision-making authority

Be consistent

Consistency is key to creating harmony across your entire classification process.

Tip: Be sure to use the same set of criteria for all jobs across the organization, even if there is some room for interpretation.

Don’t let personal biases or inconsistent evaluations undermine the system’s effectiveness. Instead, prioritizing fairness is important to guarantee equitable compensation and treatment for employees performing comparable tasks.

Example: Imagine Brian has been with your organization for 11 years. Your job level classification says that Brian is a Level I Associate. As a well-respected staff member with excellent tenure, you feel tempted to bump him up to a Level II grade, which receives a better title and pay. Follow through on this, and you have an inconsistency that could quickly become an issue for Brian’s colleagues.

Be objective

An objective approach enhances the reliability and accuracy of job classifications. Prioritize objectivity by using measurable criteria rather than relying on subjective opinions.

The process should be like using precise measurements of ingredients in a recipe rather than a pinch of this and a dash of that.

Stay flexible

Like anything in business, your job descriptions and leveling will likely evolve, so avoid too much rigidity in your classification process. Build in some degree of flexibility to accommodate new roles, changes in job duties, or shifts in organizational priorities.

Example: As your company grows, you may introduce new technologies or expand into new markets, requiring new roles that didn’t exist before, such as a Data Privacy Officer or Digital Marketing Specialist. If your job leveling system is too rigid, it may not account for these evolving roles, making it difficult to classify them or offer appropriate compensation.

By building in flexibility, you can easily adjust job levels and descriptions to reflect these changes, ensuring the system stays relevant as the organization adapts to new business priorities and emerging industry trends.

Foster transparency

Director of Product Management Anna Bankston points out that being transparent about job leveling is imperative due to changing legislation.

Achieve compliance by making the classification process and criteria transparent and easily understandable for all employees. Two-way communication is also key to addressing any queries or misconceptions before they become an issue.

Tip: Set up workshops, FAQ sessions, and regular 1:1s between managers and direct reports.

Audit your job classification system

Job roles and responsibilities will undoubtedly change over time, and some may even become obsolete. Ensure your classification system remains relevant by periodically reviewing and updating it to avoid any slip-ups like the one below.

Example of job leveling that requires an audit: Imagine you have two similar roles within your organization, both responsible for client success. One is classified as a “Client Success Coordinator” with the outlined qualifications and benefits. Despite having identical responsibilities and qualifications, the other is classified as a “Client Relations Associate” with a lower salary range and no performance-based bonuses. This needs re-classifying.

Typical job levels and their criteria

To illustrate what job levels look like within a specific job family, check out these sample job levels for entry-level, mid-level, and senior-level positions within marketing.

Entry-level: Social Media Coordinator

A social media coordinator role would suit entry-level professionals such as fresh graduates or school leavers with a proven passion for marketing.

Responsibilities

1. Content creation: Develop engaging and creative content for various social media platforms
2. Community management: Monitor and respond to audience interactions, fostering positive engagement
3. Data analysis: Assist in analyzing social media metrics to gauge campaign effectiveness
4. Coordination: Collaborate with cross-functional teams for content alignment and consistency

Qualifications

• Educational requirement: Bachelor’s degree in Marketing, Communications, or related experience
• Experience: Previous experience in social media marketing
• Skills: Strong writing skills, familiarity with social media platforms, and basic data analysis

Career progression

Potential for advancement to Social Media Specialist with demonstrated growth in content strategy, campaign effectiveness, and increased responsibilities.

Mid-level: Marketing Specialist

A Marketing Specialist role would suit someone with at least three years of experience in an entry-level position.

Responsibilities

1. Campaign development: Plan and execute multi-channel marketing campaigns aligned with organizational goals.
2. Analytics and reporting: Use data analytics tools to measure campaign performance and derive insights.
3. Strategic planning: Contribute to the development of marketing strategies and tactics.
4. Collaboration: Collaborate with internal teams and external partners to ensure campaign success.

Qualifications

• Educational requirement: Bachelor’s degree in Marketing, Business, or a related field.
• Experience: 3-5 years in marketing, focusing on campaign management.
• Skills: Proficiency in marketing tools, strong analytical skills, and strategic thinking.

Career progression

Opportunity for advancement to Marketing Manager with a proven track record in campaign success, strategic leadership, and team collaboration.

Senior-level: Director of Marketing

The Director of Marketing position would suit someone who has demonstrated excellence in a mid-level manager position, has 5 to 10 years of marketing experience, and is ready to lead.

Responsibilities

1. Leadership: Provide strategic direction for the overall marketing function, aligning with business objectives
2. Budget oversight: Manage and optimize marketing budgets, ensuring efficient resource allocation
3. Brand management: Oversee brand development and positioning strategies
4. Team management: Lead and mentor a team of marketing professionals, fostering a high-performance culture

Qualifications

• Educational requirement: Master’s degree in Marketing, Business Administration, or a related field.
• Experience: 8+ years in progressively responsible marketing roles, with 3+ years in a leadership position.
• Skills: Strong leadership and decision-making abilities; comprehensive understanding of the marketing landscape.

Career progression

Potential for advancement to Chief Marketing Officer or Vice President of Marketing with demonstrated success in elevating the organization’s market presence, strategic leadership, and impact on overall business outcomes.

Position levels in companies: Examples

When defining your job levels, seeing how other companies have built an organized job level structure can be helpful. Look no further than Deloitte, Amazon, and Singular Design to see job leveling in action.

Deloitte

Deloitte offers a well-defined career ladder for its consultants, with defined job seniority levels ranked as follows:

• Analyst (typically for undergraduates)
• Consultant (for those with an MBA or advanced degree)
• Senior Consultant
• Manager
• Senior Manager
• Director
• Partner

Singular Design

Software development company Singular Design uses a detailed leveling system including five levels and 15 sublevels as follows:

• (0) Junior (level) A, B, or C (sublevel)
• (1) Advanced A, B, or C
• (2) Specialist A, B, or C
• (3) Expert A, B, or C
• (4) Senior Expert A, B, or C

They use Deel Engage’s career module to display this multi-level and sub-level system.

The strategic value of clear job level classification in talent management

Job level classification can be a complex task, but one that can make all the difference to your talent management initiatives.

There are some clear merits of committing to the process include:

Impact on career progression

Transparent job level classification shows employees how to progress in your organization from one level to the next. In tandem with career pathing, classifications inform career development planning and expectations at every level.

Example: Jean arrives in an entry-level position in marketing after completing her college degree. She has high aspirations to advance to a senior marketing role within five to ten years. The job leveling system reveals she is three steps away from achieving that role. Jean can now talk to her direct manager about her career progression opportunities to set her up for success.

Impact on succession planning

Succession planning considers job level classification to identify potential candidates for more senior roles. With a clear understanding of job levels, you can systematically evaluate and cultivate employees with high potential for leadership positions.

Example: Sam, the current product development lead, possesses high technical and institutional knowledge. Although Sam could advance to a technical expert level, their demonstration of leadership qualities within the product team means that they would be a good candidate for a management role at the next job level.

Impact on compensation and promotions

Job level classification is also crucial in ensuring fair compensation and promotions.

By clearly understanding the job responsibilities, qualifications, and expectations at each job level, managers can make informed decisions on bonuses, pay raises, and promotions for individual employees. This reinforces a culture of fairness and equity within the organization.

Example: In a recent performance review, Jen’s manager saw that she consistently exceeds expectations in her current role as a Senior Designer but lacks some qualifications for the next job level. However, because of the precise criteria for each level, Jen’s manager can lay out a development plan with specific milestones that would qualify her for a promotion to Lead Designer within the following year. This motivates Jen to work towards those goals and shows that the organization values and invests in employee growth.

Impact on talent attraction

A clearly defined job level classification system can be a powerful tool for attracting top talent to your organization. Better yet, it reduces recruiting and training costs by retaining your best people once they’re in-seat. How? Job leveling shows potential candidates that you have well-structured career progression opportunities in place and promotes transparency in the hiring process. Additionally, employees who understand their career paths within the organization are more likely to stay with it long-term.

Example: When interviewing for a position at Company X, Liz is impressed by its detailed job level classification system. This reassures her that she will not be stuck in the same role and encourages her to join the company.

Impact on organizational efficiency

Job level classification can improve organizational efficiency by providing a clear framework for role expectations and performance standards. It helps in workforce planning, identifying skill gaps, and facilitating employee development. This structured approach ensures that employees understand their career progression and are motivated to achieve higher performance levels.

This ensures that employees are assessed based on the specific requirements of their role. Performance metrics can be tailored to different levels, providing a clear basis for promotions, rewards, and development plans.

Set up a company-wide leveling and progression framework in just a few clicks with Deel Engage

Anyone who has ever attempted to create a career framework from scratch knows what a massive task it is. Moreover, as industries and technologies continuously evolve, so do competency needs. As a result, your current skills frameworks may be obsolete in no time.

Deel Engage will help you accelerate this process and integrate career frameworks with other critical HR processes. Our systeEngage’ss you to:

• Define the progression and leveling frameworks in your organization—differentiate between IC or leadership tracks or combine both
• Define the skills, knowledge, and expertise required for each job level
• With Deel Engage’s AI assistant, you’ll have accurate, tailored competency models and role descriptions with a few clicks
• Create and automatically assign training courses for each specific job level
• Assess employee performance at their current levels and encourage them to reflect on what is missing for advancing their careers
• Deel HR, our truly global HRIS solution, is always included for free

Book a demo to see how our solutions will help you define comprehensive career progression frameworks that build a high-performance workforce.