Grading Frameworks — WTW, Korn Ferry, Deloitte, gradar, and Others

What Is a Grading Framework

A grading framework is a systematic method for evaluating and ranking jobs based on their relative value to the organization. It assigns grades or points that determine pay bands, career levels, and organizational hierarchy. The choice of framework shapes compensation strategy, career architecture, and — under EU Pay Transparency — compliance posture.

gradar

A comprehensive job evaluation platform designed for modern, skills-integrated organizations.

Methodology: Input-Throughput-Output model combined with organizational knowledge and communication factors. Integrates directly with skills and competency frameworks.

Evaluation dimensions:

• Organizational knowledge and expertise
• Communication and interaction complexity
• Task complexity and problem solving
• Responsibility and decision authority

Strengths: Built-in equal pay analysis with regression, AI-generated job descriptions, skills and competency integration native to the system, designed with EU Pay Transparency in mind.

Best for: Mid-size organizations (200–5,000), companies with a strong skills focus, organizations preparing for EU Pay Transparency compliance.

Mercer International Position Evaluation (IPE)

Mercer's IPE is one of the world's most widely deployed job evaluation methodologies, with over 40 years of development. It is used across industries and geographies to establish internal pay fairness and external market competitiveness.

Methodology: Point-factor evaluation using five core factors. Evaluators select the appropriate degree level for each factor, assign corresponding points, and sum them to produce a total score that maps to position classes (typically 40+ classes grouped into career bands).

Five evaluation factors:

1. Impact — Assesses organizational size context and the job's contribution to organizational success.
2. Communication — Evaluates the nature, complexity, and scope of communication required in the role.
3. Innovation — Measures the degree of creative thinking, problem-solving, and process improvement the role demands.
4. Knowledge — Evaluates the depth and breadth of knowledge, education, and expertise required.
5. Risk — An optional factor assessing exposure to mental or physical risk (included where applicable).

Strengths: Global consistency with localized calibration, extensive benchmark database linked to Mercer's Total Remuneration Surveys, dynamic and user-friendly methodology, strong support for market pricing and pay equity analysis.

Best for: Large and mid-size multinationals, organizations that rely on Mercer compensation data for benchmarking, companies seeking a balance between analytical rigor and practical usability.

WTW Global Grading System (GGS)

Willis Towers Watson's Global Grading System is one of the most widely used frameworks for large multinationals.

Methodology: Factor-based grading with up to 25 global grades organized into career bands. WTW now offers AI-supported job leveling (Automated Job Leveling / AJL) that provides baseline evaluations in seconds using machine learning.

Evaluation factors (7):

1. Functional knowledge
2. Business expertise
3. Leadership and management
4. Problem solving
5. Nature of impact
6. Area of impact
7. Interpersonal skills

Strengths: Global consistency, extensive benchmark database (30M+ data points), AI integration for faster leveling, supports multiple career paths (IC, management, expert).

Best for: Large multinationals (5,000+ employees), organizations needing global grade consistency, companies integrating AI into HR processes.

Korn Ferry Hay Guide Chart-Profile Method

The world's most widely accepted job evaluation methodology, used by over 50% of the world's largest employers.

Methodology: Point-factor evaluation using three core factors. Jobs receive numerical scores on each factor, producing an overall job "size" that determines grade and pay.

Three factors:

1. Know-How (inputs) — Technical knowledge, management breadth, human relations skills. What the role requires you to know.
2. Problem Solving (throughputs) — The thinking environment and thinking challenge. How the role requires you to think.
3. Accountability (outputs) — Freedom to act, magnitude of impact, nature of impact. What the role requires you to deliver.

Strengths: Proven over 70 years, court-tested and legally defensible, extensive global benchmark data, recognized by regulators. The point-based system is highly granular and objective.

Best for: Organizations that need court-defensible pay equity, executive-level role evaluation, enterprises with complex organizational structures.

Deloitte and Custom Frameworks

Deloitte does not publish a single proprietary grading system. Instead, Deloitte's approach focuses on skills-based organization design — deconstructing jobs into tasks and skills, then rebuilding evaluation around outcomes rather than traditional factors.

Key principles:

• Move from job-centric to work-centric evaluation
• Value skills and outcomes over tenure and hierarchy
• Design for agility — roles change, skills evolve, the evaluation system must keep pace

Best for: Innovative organizations in transformation, companies redesigning around skills-based principles, organizations that want custom frameworks rather than off-the-shelf solutions.

Radford (Aon)

Radford provides technology-industry-specific leveling with a simple 6-level framework (P1–P6 for individual contributors, M1–M6 for management).

Best for: Technology companies that want industry-standard leveling. Less flexible for multi-industry or highly complex organizations.

Comparison Table

How to Choose

The right framework depends on three factors:

1. Organization size and complexity — Global enterprises with 10,000+ employees need WTW, Korn Ferry, or Mercer IPE. Mid-size skills-focused organizations may prefer gradar.
2. Industry — Technology companies often use Radford. Professional services and heavy industry lean toward Korn Ferry Hay.
3. Strategic direction — Organizations moving toward skills-based operating models should choose frameworks with native skills integration (gradar, or custom Deloitte-style).