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

06 of 12

This insight is part 06 of 12 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.

Aon's Better Being Podcast

Our Better Being podcast series, hosted by Aon Chief Wellbeing Officer Rachel Fellowes, explores wellbeing strategies and resilience. This season we cover human sustainability, kindness in the workplace, how to measure wellbeing, managing grief and more.

Aon Insights Series Asia

Expert Views on Today's Risk Capital and Human Capital Issues

Aon Insights Series Pacific

Expert Views on Today's Risk Capital and Human Capital Issues

Aon Insights Series UK

Expert Views on Today's Risk Capital and Human Capital Issues

Client Trends 2025

Better Decisions Across Interconnected Risk and People Issues.

Construction and Infrastructure

The construction industry is under pressure from interconnected risks and notable macroeconomic developments. Learn how your organization can benefit from construction insurance and risk management.

Cyber Labs

Stay in the loop on today's most pressing cyber security matters.

Cyber Resilience

Our Cyber Resilience collection gives you access to Aon’s latest insights on the evolving landscape of cyber threats and risk mitigation measures. Reach out to our experts to discuss how to make the right decisions to strengthen your organization’s cyber resilience.

Employee Wellbeing

Our Employee Wellbeing collection gives you access to the latest insights from Aon's human capital team. You can also reach out to the team at any time for assistance with your employee wellbeing needs.

Environmental, Social and Governance Insights

Explore Aon's latest environmental social and governance (ESG) insights.

Q4 2023 Global Insurance Market Insights

Our Global Insurance Market Insights highlight insurance market trends across pricing, capacity, underwriting, limits, deductibles and coverages.

Regional Results

How do the top risks on business leaders’ minds differ by region and how can these risks be mitigated? Explore the regional results to learn more.

Human Capital Analytics

Our Human Capital Analytics collection gives you access to the latest insights from Aon's human capital team. Contact us to learn how Aon’s analytics capabilities helps organizations make better workforce decisions.

Human Capital Quarterly Insights Briefs

Read our collection of human capital articles that explore in depth hot topics for HR and risk professionals, including using data and analytics to measure total rewards programs, how HR and finance can better partner and the impact AI will have on the workforce.

Insights for HR

Explore our hand-picked insights for human resources professionals.

Workforce

Our Workforce Collection provides access to the latest insights from Aon’s Human Capital team on topics ranging from health and benefits, retirement and talent practices. You can reach out to our team at any time to learn how we can help address emerging workforce challenges.

Mergers and Acquisitions

Our Mergers and Acquisitions (M&A) collection gives you access to the latest insights from Aon's thought leaders to help dealmakers make better decisions. Explore our latest insights and reach out to the team at any time for assistance with transaction challenges and opportunities.

Natural Resources and Energy Transition

The challenges in adopting renewable energy are changing with technological advancements, increasing market competition and numerous financial support mechanisms. Learn how your organization can benefit from our renewables solutions. 

Navigating Volatility

How do businesses navigate their way through new forms of volatility and make decisions that protect and grow their organizations?

Parametric Insurance

Our Parametric Insurance Collection provides ways your organization can benefit from this simple, straightforward and fast-paying risk transfer solution. Reach out to learn how we can help you make better decisions to manage your catastrophe exposures and near-term volatility.

Pay Transparency and Equity

Our Pay Transparency and Equity collection gives you access to the latest insights from Aon's human capital team on topics ranging from pay equity to diversity, equity and inclusion. Contact us to learn how we can help your organization address these issues.

Property Risk Management

Forecasters are predicting an extremely active 2024 Atlantic hurricane season. Take measures to build resilience to mitigate risk for hurricane-prone properties.

Technology

Our Technology Collection provides access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities of technology. Reach out to the team to learn how we can help you use technology to make better decisions for the future.

Top 10 Global Risks

Trade, technology, weather and workforce stability are the central forces in today’s risk landscape.

Trade

Our Trade Collection gives you access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities for international business. Reach out to our team to understand how to make better decisions around macro trends and why they matter to businesses.

Weather

With a changing climate, organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Our Weather Collection provides you with critical insights to be prepared.

Workforce Resilience

Our Workforce Resilience collection gives you access to the latest insights from Aon's Human Capital team. You can reach out to the team at any time for questions about how we can assess gaps and help build a more resilience workforce.

More Like This

View All
View All
Subscribe CTA Banner