Taking a Data-Led Approach to Job Architecture to Accelerate Pay Transparency

Taking a Data-Led Approach to Job Architecture to Accelerate Pay Transparency
Workforce

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This insight is part 08 of 12 in this Collection.

Pay Transparency and Equity

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This insight is part 01 of 11 in this Collection.

May 15, 2025 6 mins

Taking a Data-Led Approach to Job Architecture to Accelerate Pay Transparency

Young businessman talking to human resource team during a job interview in the office. The view is through glass.

With looming deadlines on pay transparency regulations, establishing an effective job architecture is foundational to compliance and preparation. We explore how a data-led approach can speed the process while maintaining objectivity.

Key Takeaways
  1. Updating job architecture to ensure job functions, levels and roles are current is foundational for pay transparency and pay equity.
  2. A data-driven approach accelerates the alignment of roles and skills, providing agility and effectiveness to meet evolving regulatory landscapes.
  3. An updated job architecture also supports other initiatives such as integrating new and emerging skills and workforce planning.

There are several reasons to revisit your job architecture periodically, including rapidly changing business and operating models, skills demand and workforce planning. But perhaps none is more urgent than new pay transparency requirements. This is especially true as companies face the imminent deadline to comply with the European Union Pay Transparency Directive (which also applies to multinationals with employees in an EU country). 

Pay transparency aims to ensure that employees understand they are being compensated fairly for their contributions — and creating systems of fair pay and benefits begins with establishing a robust job architecture. Due to the time sensitive nature of the EU Directive and other evolving pay transparency and pay equity regulations, a data-driven approach to job architecture is vital. Leveraging data allows organizations to update job functions, levels and roles, as well as maintain a job architecture that’s both flexible and responsive to evolving needs such as hiring new skills and changing jobs.

Job Architecture Addresses Compliance and Strategic Issues for a Future-Ready Workforce

Compliance Future-Ready
Pay Equity Pay Mix Optimization
Pay Transparency Skills Articulation
Pay Parity Workforce Planning
Job Evaluation Career Development
Compensation Design People Strategy
  Change and Communication

The increase in transparency across all rewards requires organizations to manage employee perceptions of fairness and build trust through clear and consistent communication regarding pay and career progression. Companies will need to review their job architecture and undertake gender-neutral analytical job evaluations to comply with various regulations. Job architecture provides an impartial perspective on the contribution and value each role brings to the organization.

"Organizations are now addressing pay transparency and job architecture together as they recognize the importance of compliance and preparing their systems for the future."

- Tiffany Hamilton, Talent Solutions, North America

 

Bank Uses Job Architecture to Establish Objective Promotion Criteria

Bank Uses Job Architecture to Establish Objective Promotion Criteria

A European bank was facing issues managing talent due to inconsistent job levels and titles compared to peers. A lack of clarity on what it meant to be at different levels created challenges in managing employee progression and career paths. Aon conducted a job evaluation of more than 150 core roles using our robust but flexible methodology. Other work included clear promotion criteria and global alignment of roles across location and function, all underpinned by the Radford McLagan Compensation Database. The result was clear criteria promoting greater objectivity in the performance cycle and globally consistent job architecture across countries. A change management plan to generate buy-in from employees followed.

A Data-Led Approach to Job Architecture

Job architecture begins with job evaluation. Historically, this process may have been cumbersome, inflexible and time consuming. In today's landscape of swiftly evolving regulatory changes and rapid skills development, however, it is imperative to use an efficient, objective and gender-neutral job evaluation methodology that’s backed by market data.

Aon's approach uses the JobLink™ job evaluation methodology, which provides a consistent method for leveling roles based on internal analysis. JobLink™ includes detailed descriptions for each job level, allowing managers to set clear expectations for employees and develop career pathways. This integration streamlines processes and saves time by leveraging the comprehensive, globally relevant job catalogue held within the database.

Looking Ahead to Skills Integration

While immediate focus is on compliance with pay transparency regulations, the next step for leading organizations to consider is how their job architecture integrates workforce skills. Job architecture can significantly assist organizations in their transformation efforts by focusing on job families and skills. Adding skills to job architecture supports career mobility, upskilling, learning and development, workforce planning and structuring.

However, there are common challenges that organizations may face:

  • Over-reliance on titles. For example, a "Senior Manager" in one department might have vastly different responsibilities than a "Senior Manager" in another department. It's essential to focus on the actual role content rather than relying solely on titles.
  • Ignoring soft skills. While technical skills are easier to measure, it's crucial to factor in critical soft skills like stakeholder management or problem-solving abilities.
  • Making assumptions. Do not presume that roles differ solely because they are in different departments. For instance, a project manager in IT may have comparable core responsibilities to one in HR, even if the technical skills are very different. Any pay differences should be clearly explained and understood. 

"Integrating skills into job architecture is a forward-thinking approach that can enhance career mobility, upskilling and workforce planning," says Adithi Jagannathan, head of rewards in the United Kingdom for Aon’s Talent Solutions practice.

Regardless of the motivation for revisiting job architecture, there are numerous benefits that align well with current workforce trends, such as pay transparency and job skills. Organizations can leverage job architecture to remain competitive in managing their workforce, particularly when it comes to adapting to evolving technologies and in-demand skill sets.

Top 3

Job evaluation and job architecture are in the top three pay transparency focus areas for companies. Others include developing an overall strategy and a pay equity analysis.

Source: Aon’s North America Pay Transparency Readiness Study

Learn More

Aon’s Thought Leaders

Belinda Armenta 
Partner, Talent Solutions, Asia Pacific

Aria Glasgow
Partner, Talent Solutions, North America

Tiffany Hamilton
Associate Partner, Talent Solutions, North America

Adithi Jagannathan 
Human Capital Solutions Advisory Partner, United Kingdom

Sagorika Roy 
Associate Partner, People Advisory, Asia Pacific

Jackie Waller
Associate Partner, Talent Solutions, United Kingdom

Sabiha Vorajee
Director, Talent Solutions, United Kingdom, Europe, the Middle East and Africa

Maggie You
Partner, Head of People Advisory, Talent Solutions, Asia Pacific

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

Terms of Use

The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.

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