HCM GROUP

HCM Group 

HCM Group 

Introduction

Job families serve as a foundational framework in modern HR and organizational design. They structure how roles are grouped, developed, rewarded, and evolved over time. When defined effectively, job families provide clarity, scalability, and alignment between work design and business goals. For HR leaders, grouping roles into job families is a pivotal step in building a scalable and future-oriented workforce architecture.

This guide provides a step-by-step, in-depth methodology for identifying and organizing roles into job families. It draws from real-world examples and best practices to help HR leaders navigate the complexities of role differentiation and strategic workforce alignment.

We explore:

• Criteria for grouping jobs by skill sets, functions, or business areas
• Methods for analyzing and refining current roles to eliminate overlap or redundancies
• How to engage the right stakeholders to ensure job family definitions are meaningful, accepted, and scalable

By mastering these steps, organizations can establish job families that enable more agile workforce planning, better internal mobility, and more coherent employee development programs.

1. Criteria for Grouping Jobs by Skill Sets, Functions, or Business Areas

What Is a Job Family?

A job family is a logical grouping of jobs involving similar types of work and requiring similar skills, knowledge, and competencies. They may encompass multiple job levels, geographic locations, and even business units, as long as the underlying nature of the work remains consistent.

Effective job family structures:

• Provide clarity on career pathways and lateral moves
• Enable standardized compensation and leveling practices
• Support data-driven workforce planning
• Improve talent management and development

Common Grouping Approaches

A. Grouping by Skills and Capabilities

This method organizes roles based on the common technical or behavioral competencies required.

Example:

• "Data Science" family might include Data Analyst, Machine Learning Engineer, and Data Scientist due to overlapping competencies in data analytics, coding, and modeling.

Use Case:

• Organizations with a skills-based workforce strategy.
• Businesses focused on upskilling, capability academies, or internal marketplaces.

B. Grouping by Function or Department

This traditional approach organizes jobs by organizational department or reporting structure.

Example:

• HR Department may include Talent Acquisition, Learning & Development, Employee Relations, and Compensation.

Use Case:

• Enterprises with well-defined departmental silos.
• Organizations where internal movement stays within functional boundaries.

C. Grouping by Business Area or Customer Segment

Jobs are grouped based on the market or business unit served.

Example:

• "Retail Banking" job family may include Product Manager, Branch Manager, and Customer Service Advisor roles.

Use Case:

• Organizations with a matrixed structure.
• Businesses where job requirements vary by customer segment.

D. Hybrid Grouping

Most modern organizations use a hybrid approach—grouping first by function, then sub-grouping by skills or business relevance.

Example:

• Engineering (Function) > Front-End Development, DevOps, Cybersecurity (Skill-Based Families)

Benefits of Hybrid Structures:

• Supports both consistency and flexibility
• More intuitive for employees and managers
• Scalable across geographies and business models

2. Analyzing Current Roles and Eliminating Overlap or Redundancies

The Need for Role Rationalization

Organizations often carry legacy job titles and outdated structures that:

• Fragment the workforce
• Inflate job catalogs
• Obscure internal career paths
• Complicate compensation benchmarking

Job rationalization is the process of:

• Reviewing all current roles
• Identifying overlap and fragmentation
• Consolidating or updating titles
• Mapping them into clear job families

A Structured Approach to Job Role Analysis

Step 1: Build a Comprehensive Role Inventory

Extract data from:

• HRIS
• Payroll systems
• Org charts
• Job descriptions (JDs)

Essential data points:

• Job title
• Grade/level
• Function
• Location
• Supervisor
• Business unit
• Number of incumbents

Step 2: Identify Patterns and Clusters

Use techniques such as:

• Keyword analysis
• Text mining
• Semantic clustering

Validate early groupings through manager interviews and focus groups.

Step 3: Highlight Duplication and Fragmentation

Look for:

• Duplicate titles (e.g., “Project Manager” vs. “Program Leader”)
• Narrow roles with unclear career pathways
• Inflated structures with minimal differentiation

Step 4: Define Draft Job Families and Sub-Families

Start with broad groupings (e.g., Engineering, Sales, HR) and define sub-groups based on skills or job purpose.

Tip: Ensure each family:

• Has logical internal career progression
• Aligns with business logic
• Reflects the way value is delivered

Step 5: Review Job Levels and Naming Conventions

Establish clear rules for leveling within families:

• Analyst > Senior Analyst > Lead Analyst > Manager > Director

Standardize naming conventions across geographies and functions.

Step 6: Validate and Refine

Present drafts to:

• Functional leaders
• HRBPs
• Talent COEs

Refine based on feedback before finalization.

Example: Role Rationalization in a Healthcare System

• Before: Over 250 unique titles in clinical operations across regions
• After: Reduced to 45 standardized job families and 180 roles, enabling clear leveling and national benchmarking

Key Pitfalls to Avoid

• Designing for today’s org chart, not tomorrow’s business model
• Overly broad or overly granular groupings
• Ignoring input from frontline managers and functional leads

3. Engaging Stakeholders in Defining Meaningful Job Families

The Importance of Stakeholder Engagement

Job family design must balance technical logic with cultural acceptance. Involving stakeholders ensures the structure is both valid and embraced.

Key Stakeholder Groups

Engagement Tactics

1. Co-Design Workshops

Bring together functional leaders and HR to:

• Define family structures
• Resolve disputes over grouping logic
• Align naming conventions

2. Functional Reviews

Circulate family drafts to functional teams for feedback. Use structured templates to guide responses.

3. Validation Panels

Use cross-functional panels to review complex or high-impact job families.

4. Communication Planning

Build transparency and support by explaining:

• Why changes are needed
• How families were defined
• What it means for talent, mobility, and rewards

5. Provide Practical Tools

Equip stakeholders with:

• Visual maps of job families
• Career pathways within families
• Change impact FAQs
• Manager toolkits

Case Example: Financial Services Firm

• Engaged 200+ managers across 10 countries
• Used virtual co-design workshops
• Created job family mock-ups for real-time feedback
• Resulted in 80% increase in internal mobility after rollout

Integrating Job Families into the Broader Talent Architecture

Once established, job families become the foundation for:

• Career path frameworks
• Skills-based development programs
• Workforce planning models
• Succession planning
• Compensation benchmarking

They also enhance:

• Learning curriculum design
• Job posting and recruiting strategies
• Talent mobility programs

Strategic Questions for HR Leaders

• Are our job families aligned with how value is created in the business?
• Do they support both specialization and flexibility?
• How are they used to inform talent practices today?
• Are we accounting for future capabilities and emerging roles?
• What governance process will ensure families stay current over time?

Conclusion

Identifying and grouping roles into job families is a critical HR capability—one that underpins a wide range of talent strategies. Done effectively, it drives clarity, consistency, and coherence across the employee lifecycle. For HR leaders, mastering job family design is not just a technical task—it is a strategic lever for shaping a responsive, future-ready organization.

The process takes rigor, stakeholder alignment, and business insight. But the return—in better workforce analytics, streamlined career paths, and stronger organizational agility—is well worth the effort.

As the workplace continues to evolve, job families will serve as essential guideposts—anchoring structure while enabling change.

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