Top 5 Reasons to Update Your Job Group Structure

Are you still using the same job group structure that was developed back in the 2010s? Has your work...

Posted by Suzanne Keys, SPHR, SHRM-SCP, HR Consultant on September 21 2021
Suzanne Keys, SPHR, SHRM-SCP, HR Consultant

Are you still using the same job group structure that was developed back in the 2010s? Has your workforce grown to over 150 employees and still using EEO categories as your job group structure? It’s probably time to review that structure to ensure it still fits your organization. Just like your favorite pair of jeans, your job group structure is comfy and familiar. Why fix it if it isn’t broken? If COVID has taught us anything, it’s that there might be better ways to do things and change is not always bad.

Job groups are the critical backbone of the affirmative action plan. Most analyses in the AAP are calculated based on these groupings. Your job groups say, “these jobs are similar in wages, duties & responsibilities, and opportunities for advancement.” Is that true in your organization?

There are at least 5 different reasons to review and update your groups:

  1. Organization Changes may move jobs from one group to another. Anytime you implement a new compensation structure, update job descriptions, or create new training opportunities you may also have changed a pillar in the foundation of your job group structure. Changes in duties & responsibilities may change a job’s EEO category thus moving the job into a different job group.
  2. Regulatory changes can directly or indirectly impact your job group structure. For example, when OFCCP changed the establishment-based review scheduling letter’s itemized listing from a summary of compensation data to individual pay data, there was an increased emphasis on the compensation pillar of the job group structure. Many contractors revised their job group structure to reduce the wage range within a given group.
  3. Acquisitions, mergers, or divestitures will have a significant impact on an organization’s job group structure. Acquisitions and mergers tend to increase the size of a contractor’s workforce requiring additional job groups. Conversely, divestitures could lead to a decrease in the number of job groups.
  4. Annually, as you are preparing your affirmative action plan you should be reviewing your groupings for two things 1) are my jobs in the correct groups and 2) are my groups too big or too small. Ideally, job groups should have 20 – 50 employees, if possible.
  5. Audits present another opportunity to ensure your job groups are right. Prior to submitting an AAP to the Office of Federal Contract Compliance Programs (OFCCP), the job group structure should we reviewed, and its appropriateness confirmed. You always want to put your best foot forward in a compliance review. Double or even triple checking your job groups is highly recommended.

Remember job groups are the backbone of an AAP, if they are misaligned you may experience poor reporting results, decreased effectiveness of your outreach efforts or even permanent loss of your federal contracts.

For more information regarding job groups, register for our October Webinar on Mastering Job Groups! Reach out to your Berkshire Consultant or contact Berkshire for assistance in reviewing your job group structure.

Suzanne Keys, SPHR, SHRM-SCP, HR Consultant
Suzanne Keys, SPHR, SHRM-SCP, HR Consultant
Suzanne Keys, SPHR, SHRM-SCP is a compliance expert with 16 years of experience who provides AA Training, AAP services, government regulation insight, and OFCCP audit support.

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