Rethinking job architecture: A path to organizational agility and success 

Job roles are shifting faster than most organizations can keep up. Markets are moving, technology is advancing, and employees are expecting more — and the job architectures that were built for a different era are showing their age.

Mercer’s latest research which included over 600 U.S. organizations confirms it: most have job architectures in place, but more than half say they aren’t fit to deliver the business outcomes they need.

Our findings reveal a clear link between robust and integrated job architecture and organizational performance. Companies with a thriving, unified job architecture that effectively align skills across functions and levels experience over 5% higher shareholder returns compared to those without them.

This performance gap underscores the strategic value of modernizing job frameworks. Organizations that adapt to the changing landscape are better positioned to retain talent, respond to change, and achieve their business goals.

Several key challenges are driving the urgent need for transformation in job architecture:

1. Rapid technological change: The pace of technological advancement is unprecedented. Integrating new tools and processes often requires a reevaluation of existing designs of work, and the skills required to perform them effectively.
2. Shifting employee expectations: Today's workforce is more dynamic and diverse than ever. Employees are seeking roles that not only align with their skills but also offer opportunities for growth and development. Organizations that can’t deliver on clear measures of role success and career pathways risk losing top talent.
3. Growing demands for pay transparency and legal compliance: Regulations such as the EU Pay Transparency Directive are raising the bar on fair, transparent, and defensible compensation structures — requiring a clear, consistent understanding of job roles and the skills they require.

Static job descriptions that fail to evolve with the market can lead to gaps between business needs and talent in place, driving frustration all around. The solution starts with a clear understanding of jobs, the way work is designed, and the skills needed to deliver them.

One of the most effective ways to modernize job architecture is to embed skills directly into the framework. This approach enhances career mobility, talent retention, and organizational agility. Think of it as a "GPS for talent" - guiding employees toward growth while aligning their skills to business needs.

When skills are at the forefront of job architecture, employees can see clear pathways for advancement and development. This visibility boosts morale, fosters a culture of continuous learning, and positions the organization to adapt quickly to market shifts and employee needs.

Technology is a critical enabler in activating and sustaining modern job architecture. By leveraging systems of record, engagement, and intelligence, organizations can create seamless employee experiences and gain real-time insights into their workforce. This technological integration allows for more effective talent management and enables organizations to respond quickly to changes in the business environment.

Artificial intelligence (AI) in human resources takes this further — enabling advanced skills analysis, predictive workforce planning, and intelligent career pathing. These tools support human-agent teaming, where people and AI-powered systems collaborate to identify skill gaps, recommend development paths, and match talent to business needs faster and more accurately than ever before. As a result, companies are adapting more swiftly to changes and ensure that their job architecture remains responsive, relevant, and effective.

To keep job architecture dynamic and relevant, sustainable governance must be built in from the start. This can mean establishing cross-functional committees or governance playbooks that oversee updates and ensure alignment with business strategy. By fostering collaboration across departments, organizations can ensure that their job architecture evolves in tandem with their business goals.

For organizations beginning this journey, we recommend three key steps:

1. Assess your current maturity: Understanding the strengths, gaps, and opportunities of the current job architecture is crucial. Organizations should evaluate their existing frameworks to identify strengths and areas for improvement.
2. Pilot before scaling: Implementing changes on a smaller scale allows organizations to test new approaches and gather feedback before rolling them out organization wide.
3. Foster strong partnerships with IT: Collaborating with IT departments is vital for leveraging technology effectively. IT can provide insights into the tools and systems that will best support the organization’s goals.

Modernizing your job architecture is a strategic imperative. Organizations that act now to integrate agile skills-powered job architecture, leverage AI, and govern with agility will be the ones that retain talent, adapt quickly, outperform their competitors, and deliver increased shareholder returns.

By taking these steps now, companies can create a more engaged, skilled, and future-ready workforce — ultimately driving stronger business outcomes and higher shareholder returns.

_Authors

_{Tauseef Rahman, Partner, Career Practice Growth Leader for Northern California and Hawaii}

_{Molly Leeds, Senior Principal}

_{Jim Holincheck, HR Technology Adviser and Analyst GTM Influencer & Strategist, Mercer}

_{Gordon Frost, Global Rewards Leader, Mercer}

_{Lauren Mason, Partner, US Workforce Solutions Leader}