What is it? Grading is a method of calculating salaries for employees. Its essence is that the employee receives money for his efforts and successes, and not for an 8-hour workday or a "loud" position.
How to implement? It requires a thorough analysis of all positions in the company, responsibilities, dividing them into grades according to certain criteria, preparing summary tables and graphs. We will tell you more below.
The article explains:
What is staff grading?
Why does a company need grading?
Differences between grading and the tariff system
Pros and cons of why do vietnamese use zalo? grading in a company
Types of grading systems
Methods of constructing grades
Stages of development and implementation of the grading system
Common Problems When Designing a Grading System
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The grading method came to us from the West. It has been used since the 40s in many large American companies and has now reached Russia.
The transition to a new wage system requires careful preparation, assessment and calculations. As you understand, there is a lot of work to do, but in the end you will receive fair wages that the staff deserves.
What is staff grading?
Personnel grading is the division of positions into groups in a hierarchical order according to certain characteristics. The level of an employee's income directly depends on the position that the employee occupies in this scheme.
In Russian companies, the salary grading system is rarely used today. As a rule, HR specialists have little idea about it.
In Western countries, the grading system became widespread in the 1940s. Its author was the successful American entrepreneur Edward Hay, owner of the Hay Group consulting center. He believed that the following factors influenced the size of wages:
list of duties;
position held;
powers;
time spent on completing the work.
The concept was based on the famous Maslow's hierarchy of needs. For a person, the most important are the physiologically most significant needs, i.e. food, shelter and safety. To satisfy them, it is necessary to pay money, and this is the incentive to improve the quality of work and, therefore, receive a high reward.
The internal policy of the organization is not directly aimed at ensuring the basic needs of the staff. At the same time, cash payments to employees certainly have priority over non-material incentive methods.
Grading should be distinguished from the bonus system. Its purpose is not to provide one-time payments, but to systematically motivate workers, develop and maintain their interest in work. There are two types of it:
job grading (used in large organizations with a large number of employees);
staff grading (used in small companies).
In any company, the grading system involves motivation through salary, and this applies to both ordinary employees and managers.
What is staff grading?
In reality, many organizations resort to paying bonuses only. It is believed that this method has three main advantages:
efficiency;
improving employee motivation;
minimization of time costs.
However, the bonus system does not provide an opportunity to evaluate the employee's merits. His income level may increase or decrease without good reason.
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