What is a job level?

A job level, also known as job grade or job band, is a categorization within an organization’s job hierarchy defining the scope, responsibilities, and qualifications required for a specific position. It helps structure roles within a company and ensures clarity in career progression, compensation, and organizational structure.

Organizations use job levels to structure different roles within the company based on a set of predefined criteria, such as:

• Role responsibilities
• Skills required
• Level of expertise
• Impact on the organization

Using job levels aims to create a clear and transparent hierarchy of positions, ensuring employees are compensated and rewarded appropriately for their experience, skills, and contributions.

Understanding job levels helps in career planning, performance management, and organizational structuring. They provide a clear path for career progression and help align roles and responsibilities with organizational needs.

What is the purpose of job levels in an organization?

Job levels serve multiple purposes within an organization:

• They provide a clear career path for employees, helping them understand the requirements and expectations at each stage of their career
• Aid in structuring compensation and benefits, ensuring equitable pay across similar roles
• Help in workforce planning and talent management by identifying skill gaps and succession planning needs

What are the key features of job levels?

Job levels typically define the following aspects:

Responsibility and complexity: The extent of responsibilities and the complexity of tasks assigned to a role.

Example: Entry-level positions may involve routine tasks, while senior-level roles require strategic decision-making.

Required skills and experience: The education, skills, and experience level necessary for a role.

Example: A managerial role may require several years of experience and advanced leadership skills.

Decision-making authority: The degree of decision-making autonomy and authority.

Example: Executives may have the authority to make high-impact business decisions, whereas junior employees follow set guidelines.

Supervisory responsibilities: The number of direct reports and the scope of supervisory duties.

Example: A team leader may manage a small group, while a senior manager oversees multiple departments.

Salary range and benefits: The compensation package associated with each job level.

Example: Higher job levels generally have higher salaries and more comprehensive benefits.

What is the difference between job levels and job titles?

Scope and hierarchy

Job levels reflect the position’s rank and scope within the organizational hierarchy. They provide a framework for career progression.

Examples: Entry-level, Mid-level, Senior-level.

Job titles are the specific designations given to positions within the job levels, often reflecting the role’s function and responsibilities.

Examples: Software developer, Senior software developer, Principal software engineer.

Consistency vs. specificity

Job levels ensure consistency across the organization by categorizing roles with similar responsibilities and complexities into the same level.

Example: All mid-level positions have similar responsibilities and salary ranges regardless of department.

Job titles are specific to the role and department, highlighting the required duties and expertise.

Examples: Marketing manager, Sales manager, HR manager.

Career path and structure

Job levels help map career paths and understand the company’s career progression framework.

Example: Employees can see how they can move from entry-level to senior-level positions.

Job titles provide clarity on the specific roles within each level.

Example: An employee can understand the skills and responsibilities needed to move from Marketing specialist to Marketing manager.

Complimentary resources:

• A Guide to Job Level Classification
• Competency Framework Template
• Competency Mapping Template

How are job levels determined? And how can organizations ensure they are fair?

Job levels are determined based on several factors, including:

• The complexity of tasks: The degree of difficulty and variety of tasks required for the job
• Required skills and experience: The expertise, education, and experience necessary to perform the job effectively
• Decision-making authority: The level of responsibility and autonomy in making decisions
• Impact on the organization: The role’s influence on organizational outcomes and strategic goals

Organizations typically use structured job evaluation methods to consistently assess and assign job levels. These methods include:

• Point-factor analysis: Assigning points to various job factors (e.g., skills, responsibilities, effort) and calculating a total score to determine the job level
• Ranking: Ordering jobs from highest to lowest based on overall value to the organization
• Classification: Grouping jobs into predefined categories or grades based on similar duties and responsibilities

To ensure that job levels are fair and equitable, organizations should:

• Conduct comprehensive job analyses: Gather detailed information about job duties, responsibilities, and requirements to create accurate job descriptions
• Implement consistent job evaluation processes: Use established methods to evaluate jobs objectively and systematically
• Involve multiple stakeholders: Engage HR professionals, managers, and employees in the job evaluation process to provide diverse perspectives and insights
• Regularly review and update job levels: Continuously monitor and adjust job levels to reflect changes in roles, responsibilities, and market conditions
• Provide training on equitable practices: Educate managers and HR personnel on unbiased and fair evaluation practices to prevent discrimination and ensure consistency

What are the benefits of defining job levels?

Defining job levels creates a structured environment where roles and responsibilities are clearly understood, facilitating better management and development of the workforce. Here are the key benefits of establishing job levels in an organization:

Clarify organizational structure and hierarchy

Job levels define the roles and responsibilities at different levels, establishing a clear chain of command and decision-making authority. This clarity is essential for efficient operations, facilitating coordination and communication within the organization.

Example: Employees understand their reporting structure and how their role fits into the broader organizational framework.

Clear career progression

Job levels provide employees with a transparent path for advancement, outlining the steps needed to move up the career ladder. This clarity helps employees understand what is required to progress within the organization.

Example: An entry-level analyst can understand the steps needed to become a senior analyst or manager.

Consistency in compensation and benefits

Standardizing pay scales and benefits across job levels ensures fair and equitable compensation throughout the organization. This helps attract and retain talent by maintaining competitive and consistent compensation practices.

Example: Employees at the same job level receive similar salary ranges and benefits, regardless of their job title, ensuring fairness and equity.

Enhanced motivation and retention

Clear job levels provide employees with visible career advancement opportunities, which can significantly boost motivation and retention. When employees understand how to progress and what is required to advance, they are more likely to stay and grow within the organization.

Example: Employees are motivated to develop their skills and stay with the company, knowing there are clear career growth pathways.

Improved performance management

Job levels align with performance management systems to define expectations and performance criteria for each role. This alignment ensures that performance evaluations are fair and consistent, helping managers set measurable goals and objectives.

Example: Managers evaluate employees based on the competencies and responsibilities associated with their job level, providing a clear roadmap for performance improvement.

Complimentary resources:

• How to Implement an Effective Competency-Based Performance Appraisal in Your Organization
• Competency-Based Performance Review Template

Strategic workforce planning

Defining job levels aids in planning for future workforce needs and aligning talent management with business goals. It helps identify gaps in certain job levels and prepares the organization for succession planning.

Example: The organization can identify potential skill gaps and plan for leadership transitions, ensuring a steady talent pipeline.

Alignment with organizational goals

Job levels ensure that roles and responsibilities align with the company’s strategic objectives. Higher-level positions can focus on strategic initiatives, while lower-level positions handle operational tasks.

Example: Senior executives focus on long-term strategy and innovation, while entry-level positions focus on day-to-day operations.

Improved talent management

Job levels provide a structured approach to career development and succession planning. They help identify high-potential employees and map their career paths, facilitating targeted training and development programs.

Example: The organization can develop targeted training programs to equip employees with the necessary skills to advance to higher levels, ensuring leadership continuity.

Consistency in global hiring and managing a global workforce

Standardized job levels ensure consistency and standardization across different regions and countries in a global workforce. This common framework helps evaluate roles, set compensation, and manage career development, reducing confusion and ensuring equitable treatment.

Example: Global organizations can maintain consistent job evaluation and compensation practices across different regions, aligning global talent management practices.

Organizations can create a more structured, fair, and efficient environment by defining job levels, supporting employee development, improving performance management, and aligning with strategic goals.

Develop and manage multi-level career frameworks with Deel Engage

Deel Engage’s career development module offers a fast, efficient way to create meaningful career frameworks. You can define multi-level career paths for individual contributors and leaders. Your workers, from junior employees to senior managers, will understand how to shape their career trajectory within your organization. Additionally, with the AI assistant, you can create complex career progression frameworks for all the roles in your organization. 

You can directly connect your job profiles at all levels with:

• Competency-based feedback systems to assess competencies and automatically compile individual competency profiles
• Targeted development plans to set the actions and milestones for employee development
• Internal and external training to fill development plans with concrete actions—you can automatically suggest learning content based on roles and competencies

Book a demo to see how our solutions will help you build a high-performance workforce.