Remuneration model: grades. Remuneration model: grades 11 grade in Sberbank

Personal information:

Consulted in the field of regular management of more than 70 companies: from 10 to 9,000 people (including: holding companies, chain stores, factories, service companies, builders, government officials, web agencies, online stores). Student of Alexander Friedman.

One of the co-authors of the book "Social technologies of the Tallinn School of Managers. Experience of successful use in business, management and private life": http://www.ozon.ru/context/detail/id/140084653/

systems business expert

Investments in knowledge always bring the greatest return

Benjamin Franklin

to whom: owners, top managers, executives

“Well, they don’t want to study!”

We often hear leaders say: “Well, they don’t want to study!”. To which they reasonably receive my answer: “If you allow your subordinates to receive a salary and not work at all, then you will see the vast majority at work on the day the relevant order is published for the last time.”.

Conclusion: an employee should not have a choice: to study or do nothing. The possible choice is as follows: “grow” or “leave” (the famous McKinsey principle, which sounds in the original “Up or Out”).

Wait to run and train employees immediately. In modern business, any action must be performed systematically, otherwise it can do more harm than good. Therefore, today I will talk about building a system for training employees, and not about one-time “forays” and “magic tricks”.

What results from the lack of a grading system in a company in particular and an employee training system in general?

• The manager spends a huge amount of time on training employees, as well as on constant motivational kicks. But there is no result. Knowledge, even if it has been acquired, is not applied in practice.
• The manager is dissatisfied with the speed and quality of employees’ development of new technologies and thinks that he is “overpaying” them.
• Demotivation for employees: 1) Their real value in the labor market is growing, but their salary remains the same. 2) Undeserved salary indexations or unjustified increases demotivate even worse. “Why do anything if the salary is increased just like that!”

Key elements of the employee training and development system

I talked about many elements of the training system in my articles. Today we will talk about the grading system. With your permission, I will provide links to other materials.

1. System of regulations ().
2. Company knowledge base ().
3. Constant analysis of management situations ().
4. Grade system. They will be discussed in detail in this article.

What are grades?

Grade- this is a certain stage of employee development at which he has certain knowledge, the ability to apply it and experience in applying it. From here grading system- sequence of “steps” in an employee’s horizontal career. The principle here is the same as in “sports categories” and “class of specialists”.

For example, in normal practice we have a “project manager”. Each grade reflects its rank or class. Previously, an employee only had the opportunity for vertical growth, i.e. become the head of a department. The boss, as you know, is alone, but what about the rest of the employees? For them, grades open up an official “horizontal career”, for example, from 4th to 1st grade. It will sound like this: second grade project manager.

Main sections for grades

At each level (grade), the required parameters are set for the employee in the following main sections:

• Professional skills(what needs to be studied in a professional field. Example: list of books on negotiations for a sales manager).
• Management skills(anyone who manages people in your organization should actively “upgrade” their knowledge in the field of management).
• Personal skills(here may be present: computer typing speed, competent business writing, personal efficiency, etc.)
• Degree of participation in the development of business processes(the higher an employee moves through the grades, the more he must invest in the development of the business processes with which he works). I highlight it separately, because This section is extremely critical for building a system of continuous development of the company by employees.

Benefits for employees from working with grades

• Motivation (impulse, close to compulsion) to improve all of the listed skills (yes, often this is simply necessary!). I think this is a need for many top managers. Alas, they have to motivate themselves on their own :-)
• A clear understanding by the employee of what needs to be done to receive greater monetary rewards. Transparent rules of the game.
• Bonus: when a person sees that he is developing in successive steps, and does not stand still, life takes on greater meaning, satisfaction comes from work and a change in activity. Family relationships become even better :-)

Key principles for implementing a grading system

1. In fact, each grade consists of a number of requirements for an employee (what he should be able to do, what technologies to know, what books to read and practice). The higher the requirements, the higher the wages. Requirements are set for each employee individually. For mass positions, the requirements need to be unified, otherwise there will not be enough time to draw up grades for everyone. There are more complex options for the grading system, but I won’t dwell on them, because... Most people don’t get around to using the system even in its simplified version.
2. For each position there is one typical list of grade contents: in some places the requirements overlap with other positions, in others they are completely different. The grade can also be drawn up for each employee individually, depending on experience (relevant for complex positions: heads of departments, branches, top managers).
3. For all managers, a corresponding section is required to be added to the grade, aimed at improving their managerial qualifications.
4. The time to achieve the grade can be set at 3-6 months. Based on the results, the employee must pass an exam. If he “failed,” he retakes only what he “failed.”
5. Grade step- this is the amount of monetary remuneration by which the employee’s monthly salary is increased after achieving the grade. For salary from 40 thousand rub. recommended “grade step”: 5 thousand rubles. For salary from 20 thousand rub. - 2-3 thousand rubles.
6. Employees are given instructions on how to study materials (more on this below).
7. The main training of employees occurs on their own time and is carried out by each individual independently. Because the benefit is mutual: the employee receives a higher value on the labor market + a bonus to his salary. What does the company get? Why should she invest managers’ time and money in drawing up and monitoring the achievement of grades and passing exams? The benefit of the company is that the employee performs his tasks more efficiently and efficiently, with better results + gets the opportunity to participate in new areas that are important for the company.
8. There are several options for compiling grades: 1) The next grade can be compiled only when the previous one has been achieved (relevant for complex positions: heads of departments, branches, top managers). 2) In the case where there are many employees with a given position (for example, 30 salespeople), it makes sense to standardize the list of grades, so that the next grade will be predetermined in advance. At the same time, the manager can make additions to it, depending on work experience and interaction with a specific employee.
9. Each addition made must be analyzed for “perhaps this skill/knowledge should be available to everyone?” (Example reasoning: Manager Ivan is at a loss when faced with attacks from clients. This means he must “pump up” his skill in overcoming conflict situations. For example, read Mikhail Litvak’s book “Psychological Aikido” ( ). It is important for all managers to know how to get out of conflict situations and at the same time maintain relationships with the client! Let's include analysis of this book in the grade of all sellers!”
10. Each new grade contains all the requirements from previous grades, i.e. if the grades included the study of sales materials, and the materials are replenished, then they need to be continued to be studied at the new grade.
11. An employee who does not want or cannot “go” according to grades is a candidate for “relegation”. It is much more effective to pay attention to a person’s learning ability even when hiring. This will allow you to weed out unsuitable employees at the interview stage (read more about selection in the article “”). Thus, both personal development and the development of business processes is an honorable responsibility for everyone, but not work “at will.”

Typical employee excuses and manager’s responses to them

• “I don’t have time to study”- Then work 7 hours a day instead of 8 hours. Take 1 hour every day at your own expense and spend this time studying. Got time? As Alexander Friedman says: “To understand what a person really thinks, it’s enough to watch what he does.”
• “I can’t set aside 1 day off, my family won’t understand me” - Split up your time: Set aside 2-3 hours a week, instead of a whole day once a month. Cut the “elephant” (the big deal) into pieces (subtasks), rather than trying to swallow it whole. A basic rule of time management.
• “My skills will not be in demand on the market”- Let's compare notes, “where do you plan to develop” and “where is it necessary for the company.” Perhaps our paths diverge?
• “I’m already a professional, and everything suits me”- I mentioned what to do so as not to hear such answers. Invest more time in screening at the interview stage to distinguish “those who are willing and able to learn” from those who are “unwilling” or “unable.” Rule No. 1 when hiring: we don’t need anyone who is not capable of learning.

Technology for studying materials (excerpt from our internal regulations)

Where the teaching technology is not outlined, everyone will act in their own way. Some will read the material by speed reading, some will read between the lines, and some will read just the headlines. Therefore, I present here our technology for studying materials, which is mandatory when “passing” the grades.

What does it mean to study a book? Listen to materials?

For each book/material studied, there should be a short summary with key points and formulated suggestions on how we can improve our work using specific techniques and technologies from the book.

In what form should I prepare my notes? In writing?

Yes, in GDocs (maximum: 5-7 pages) or Mind map (Mindjet Mindmap Manager format). Important: very short. But so that you can then use it.

What is the best way to record thoughts on company development?

It’s useful to capture thoughts that are beneficial to the company right away (for example, using Evernote if you’re reading on a tablet and/or phone) or formulate them while writing a short summary.

How to “highlight” and save key ideas and comments while reading a book?

Read the book in PDF. In Adobe Acrobat for all devices, you can highlight lines in a document and leave comments. After reading, email the document to yourself for later compilation of notes. Some programs for mobile devices, such as iBooks, allow you to automatically generate notes based on selected text fragments and comments.

What's the point of taking notes? Why does it need to be done in writing?

• When working with a book, more knowledge will be retained in your head.
• After going through the notes, you can quickly remember and apply knowledge in your work.
• Having an outline will allow you to be sure that the book has really been worked out in detail.

What to do next after studying?

• It is mandatory to use the obtained information in work processes.
• Recommendations must be provided to improve our business processes, technologies, standards, etc. due to the knowledge gained.

An example of a grade for one of the project managers of the Open Studio company

• Project management for the support and development of websites / online stores on 1C-Bitrix (internet marketing): know and constantly monitor in your personal time the development vector, new products, webinars, presentations, affiliate program, etc. (marketplace, internal functionality, etc.).
• Implementation of a portal (both “cloud” and “box”): development of strategies, organization of effective work (for management consulting): know and constantly monitor in your personal time the development vector, new products, webinars, presentations, affiliate program, etc. d. (marketplace, internal functionality, etc.).
• Complete the official 1C-Bitrix courses: 1) Business processes; 2) Telephony in Bitrix24; 3) Introduction of corporate. portal
• Management: Audio course by Vladimir Tarasov "Personal management art." Based on the results of the course: 1) know basic techniques and management techniques; 2) know the definitions and methods of management. 3) be able to build scenarios and use stratagems. Course notes are required.
• Book by Alexander Friedman “You or Chaos. Professional planning for regular management.”
• Opportunity to work as a consultant on projects for the implementation of regular management and other management consulting services (at the first stage: working in a team with senior manager Evgeny Sevastyanov).
• Weekly comments to other people's comments and to all posts with a question in the Remote Management public pages.
• Read the book by Igor Ryzov “I always know what to say. A training book on successful negotiations.” Participation in the preparation of regulations for sales and negotiations in relation to our services based on the studied material

Mikhail Arkhipov, head of the corporate project “Building a system of grades and remuneration structure”

By the end of 2011, almost all positions at SIBUR will receive grades and take their place in the updated corporate business hierarchy. The grading process that starts at the corporate center will affect all enterprises of the company, and this is important.

Many large Russian companies have already implemented the grading system. This is a new project for SIBUR. It is necessary to clarify the concept of grading and clarify what is meant by it in world practice and within SIBUR.

The prerequisites for grading can be seen in the history of Russia - let us remember the “Table of Ranks” of 1722, adopted by Peter I. In the army, this is a system of military ranks. For example, an infantry captain and an artillery captain do different things. But both are captains. Their positions have equal weight in the military hierarchy. In Soviet times, an analogue of the grade system was the tariff qualification grid. The modern grading system is becoming increasingly popular among employers.

Grading allows you to “weigh” positions of various functions according to uniform criteria, distribute them by level and create a single end-to-end ladder of job levels, each step of which reflects the significance of the position for the business and the weight of its contribution to the overall results of the company.

To evaluate positions at SIBUR, we use the methodology of the Hay Group, which has a reputation as a leader in this field. Based on the adopted methodology, each position receives a certain number of points. It is the number of points scored that determines which grade the position falls into, that is, at what level of the corporate hierarchy a given position ends up. It is important to understand that it is not the professional qualities of individuals that are assessed, but the requirements for the position.

Thus, the grade is the “weight” of a position within the company. And this “weight” depends on a number of factors. According to the Hay Group methodology, any position is assessed according to three universal factors: 1) knowledge and skills, 2) the level of issues being resolved, 3) responsibility and the degree of influence on the final results. The “puzzle” of these factors consists of several parameters.

Factor of “knowledge and skill” consists primarily of the experience and knowledge necessary to perform the duties of the job to a standard level. Secondly, the breadth of management is assessed: how monotonous is the function that a person performs, is he required to manage functions that can come into conflict with each other. And the third parameter in “knowledge and skills” is communication skills. Does the result depend on whether simple polite forms of communication will be enough for a person or whether he needs to motivate people and carry him along? Let me emphasize once again that we are talking specifically about assessing the level of requirements for a position, and not the abilities of a particular person.

The second factor is “issue resolution.” Here the scale and complexity of the tasks being solved are measured. For example, what restrictions on activities should be or are they not clearly defined. How the tasks are characterized, they are standard or variable, and it is possible that there are no ready-made solutions or similar practices and fundamental research is needed.

The third factor is “responsibility” - no less interesting and one of the most difficult. This is the parameter that shows how free a person in a particular position is to make decisions, that is, to what extent the scope of his powers allows him to make certain decisions. Typically, this factor measures the degree of influence on financial results (direct or contributing) and the magnitude of these financial results (profits or costs). It is not always possible to identify the financial component, and then the relative complexity of the work is assessed.

All factors are assessed from the highest positions to the lowest. That is why we started with an assessment of the president, members of the board, directors of independent structural divisions of the corporate center and general directors of factories. As a result, the approved structure of SIBUR grades has 30 levels. The lower 3-4 levels will most likely remain empty, since the level of qualification requirements and knowledge required for such positions is primitive, and in modern business such positions are usually replaced by automation. We practically no longer have such positions.

Who will benefit from this corporate ladder of job ranks? Basically, everyone. From ordinary employees to shareholders. For a company, a clear system of “ranks”-grades means transparency in the eyes of strategic partners and investors, and this means increased attractiveness and greater capitalization of the brand. This also means greater controllability, because in the day-to-day management of a company, grading makes it possible to make more informed decisions regarding personnel and helps in building organizational structures. It clearly demonstrates unnecessary levels of management or unjustified gaps (from the point of view of the weight of the position in the company) between the manager and the subordinate. After all, if the gap in “rank” between the boss and the subordinate is too large (more than three steps), the tasks that the manager sends to the subordinate will not be adequately perceived and, therefore, will not be completed efficiently. For us, the company's employees, grading gives us a clear understanding of where we are in the company's hierarchy, what growth prospects we have, but one of the main advantages of grading is a transparent and objective remuneration system.

The task of grading is to create a unified, universal remuneration system for all enterprises of the company. At the same time, the principles of both internal fairness and the logical progression of people from one position to another, and external objectivity must be observed so that the company is sure that it is paying market wages.

Salary ranges for each grade are based on information from several labor market surveys. These are our indicators that show how our compensation compares to our industry market. As a rule, three or four reviews are used for each region. In those specific regions where there are no survey data, we compare statistical indicators on the cost of food baskets and build a range in relation to the enterprise that is closest in characteristics, located in a similar region.

For each grade, the target percentage of the premium and the frequency of its payment will be determined. Until now, the company has approached determining the percentage based on job titles, which is not entirely correct, since the title does not always reflect the weight and essence of the position in the company. This approach will change. But grading does not aim to reduce personnel costs. The main goal is to build a transparent and fair policy on wages and remuneration for employees.

Grading also allows you to effectively manage such HR processes as training and development programs, building a hierarchy of positions and personnel rotation programs, organizational design - the creation of uniform standards for constructing organizational structures and job titles, personnel selection and the correct structuring of social benefits.

Today, the grade system is the best and only justified system for calculating official salaries based on the point-factor method and matrix-mathematical models. The author of this technique is the American scientist Edward Hay. Therefore, it is often jokingly called “Hay’s salary meter.”

The growing popularity and demand for grading methods is due to the fact that they have stood the test of time.

First, let's define what is what. Grading(from English grading) - classification, sorting, ordering. Grading is the positioning of positions, that is, their distribution in the hierarchical structure of an enterprise in accordance with the value of a given position for the enterprise.

It is very difficult to find such a universal method of remuneration that would take into account the interests of both the employer and the employee. The company always tries to pay taking into account its goals, but just enough so that the employee does not leave, and the latter, in turn, strives to receive as much as possible. It is the system of grades that allows you to “link” wages and business logic, as well as untie the knot of problems associated with staff motivation.

Types of grading systems that are usually implemented

Today, the following grade systems and their modifications are being introduced into practice depending on the degree of complexity.

First degree of difficulty- a system for ranking positions by degree of complexity. It does not require mathematical calculations and can be implemented by the company's top managers after their preliminary training. It has nothing in common with the original version of the grade system. But some consultants are introducing it en masse at Russian and Ukrainian small and medium-sized businesses.

Second degree of difficulty- This is Edward Hay's system, which is truly based on point-factor methods. But this is not an original option, but a system of grades that American consulting companies modified for the CIS market. We will present its version (with some simplifications to make it easier to understand) later in this publication. Approximately this option can be implemented in companies with a small staff.

Third and fourth degree of difficulty- these are real original grading systems, which, despite their copyright protection, have found their way into the markets of Russia and Ukraine. These systems are based not only on the point-factor method, but also on correct, complex mathematical calculations of weight, pitch, matrices, profile guide tables, graphs and, most importantly, on accurate and consistent adherence to the stages of the methodology.

These methods are very labor intensive. Their implementation stretches over a period of 6 months to one year and is accompanied by a large amount of paperwork and accompanying recommendations. Therefore, here you cannot do without an external consultant.

The introduction of this remuneration system makes the enterprise competitive in the domestic and foreign markets, since the company’s “transparency” for investors increases and, accordingly, capitalization increases.

In addition, by introducing a grading system, an enterprise can position itself as a serious player in the global labor market and attract top managers, as well as highly qualified specialists from all over the world, to work or cooperate.

The grading system evaluates all types of jobs, making it an extremely valuable tool in shaping pay structures. The criterion for evaluating positions is the level of influence of the position on the company as a whole and the type of impact on the final result.

What is the difference between the tariff system and grades?

Many compensation specialists may have the impression that grading is an analogue of the tariff system. Undoubtedly, there are similarities. After all, both the salary scale and grades represent a hierarchical structure of positions, where salaries are arranged on an increasing basis. But there are also significant differences ( table 1).

Table 1. Differences between the tariff system and grades

Tariff systems	Grade systems
1. Built on the basis of an assessment of professional knowledge, skills and work experience	1. Provides a wider range of criteria, including such job evaluation indicators as: - management; - communications; - responsibility; - complexity of the work; - independence; - cost of error and others
2. Positions are built on an incremental basis	2. Grading allows the intersection of parts of two nearby grades. As a result of this, a worker or foreman of a lower grade, due to his professionalism, may have a higher salary than, for example, a labor protection specialist who is in a nearby higher grade.
3. The hierarchical structure of the wage scale is based on the minimum salary multiplied by coefficients (inter-category, inter-industry, inter-position and inter-qualification)	3. The structure of grades is based only on the weight of the position, which is calculated in points
4. All positions are arranged according to a strict vertical progression (from worker to manager)	4. Positions are placed only on the basis of importance to the company

So, for example, in an enterprise that is engaged in intellectual developments, after the managers there will be a grade of IT personnel as the main earners and profit-makers, and only then the grade of employees (lawyers, managers, etc.) will be placed.

For which enterprises is the grading system suitable?

First of all, this system is convenient for large and medium-sized enterprises, since, unlike vertical career building, it allows you to build a career horizontally, within your level. For example, increasing workers' qualifications and education will affect the level of pay, since the weight of the knowledge factor will increase, and wages will increase, despite the fact that the worker will remain in his position. In addition, in large enterprises there are a large number of positions, which creates many problems. Therefore, in previously used systems for determining job salaries, it was necessary to formally name positions in order to somehow place them in a hierarchical vertical. The grading system solves this problem.

What steps will have to be overcome to implement the new system?

The introduction of a grading system at an enterprise occurs in several stages, namely:

1. Preparation of the working group, study of the methodology.
2. Development of documentation (concept, position, etc.).
3. Job evaluation (questionnaire, interview, conversation).
4. Determination of job requirements, clarification of factors.
5. Distribution of factors by levels (ranking).
6. Evaluation of each level.
7. Estimation of factor weight.
8. Calculations of points for each position.
9. Distribution of points by grade.
10. Establishment of official salaries and calculation of salary ranges.
11. Reproducing the graph and analyzing the results.

Since points 1–3 are preparatory steps that are very extensive in description, they will not be considered in this publication. It is advisable to have a trained internal expert or external consultant assist in these stages of grading system implementation. This will avoid mistakes in the future.

Now let's move on to the main part of building a grading system.

Stage 4. Determination of job requirements, clarification of factors

This is one of the most difficult stages because it requires selecting key factors for each position. These factors should not only be understood, but also be distributed across levels of complexity. Here it is necessary to take into account the specifics of the enterprise, department, as well as the requirements for the position. For a clear example, we took a virtual company.

First you need to decide on the general criteria for evaluating positions, which can be:

• skills;
• knowledge;
• capabilities;
• value;
• complexity;
• responsibilities, etc.

Often there is a need to divide factors into subfactors, which allows for a deeper and more varied disclosure and, accordingly, a more accurate assessment of the position.

For a clear example, let’s take a virtual company with a total staff of 16 people.

Our virtual company has identified the following factors to evaluate positions ( table 2):

• employee management;
• responsibility;
• independence at work;
• experience;
• level of contacts;
• complexity of the work;
• the price of a mistake.

Table 2. Key job evaluation factors

Factor levels	Level Description
Factor 1. Employee management
	There are no subordinates, i.e. there is no need to manage employees
	There are no direct subordinates, periodic coordination of the work of other employees within the framework of the assigned task
	Coordination of work group activities (2–3 people)
	Managing a group of subordinates to regularly perform functional tasks
	Department management: influence, control, goal setting, motivation and leadership. The need for both vertical and horizontal interactions
	Management of a group of departments, predominantly vertical power interactions
Factor 2. Responsibility
	Responsibility only for your own work, there is no responsibility for the financial results of your activities
	Responsibility for the financial results of individual actions under the control of the immediate supervisor
	Responsibility for financial results of regular activities within functional responsibilities
	Development of decisions that affect the financial result of a working group or department, coordination of decisions with the immediate supervisor
	Full responsibility for the financial results of the department, for material assets, organizational expenses within the budget of the department
	Full responsibility for financial and other results of an entire area of ​​work (group of divisions)
Factor 3. Independence at work
	There is no need to make independent decisions, follows certain instructions, powers are limited, there is constant control
	Standard decisions are made under the control of the manager, non-standard situations are resolved by the boss
	Goals are determined by management, planning and organization of work is carried out independently, independent preparation of decisions, decisions are made by management
	Only general goals are formulated; the employee independently develops methods and means of achieving goals (based on the organization’s policy)
	The employee is practically under self-control, independently sets goals and objectives, following the organization’s strategy
	Development of a general policy for the actions of a group of divisions, participation in the development of the company’s strategy
Factor 4. Work experience
	No work experience required
	Experience required, not necessarily in this field
	Requires 1 to 2 years of specialized experience in this field
	Extensive experience in this field is required (from 3 years)
	Serious experience is required not only in this field, but also in related fields
	In addition to professional experience, significant experience in practical management of large numbers of employees is required.
Factor 5. Level of special knowledge (qualification)
	Secondary or higher education is sufficient, no special knowledge is required
	A higher education is required, not necessarily a specialized one, but also a basic level of proficiency in special techniques and technologies.
	Higher specialized education is desirable, fluency in special techniques and technologies
	Higher specialized education, requires in-depth specialized knowledge and basic knowledge in related fields
	Higher specialized education, special knowledge in the field of development, the need for an academic degree
	Higher specialized education and additional education in the field of organization and personnel management
Factor 6. Level of contacts
	Communication is at the usual level, there are practically no contacts with clients and external organizations
	Periodic contacts with clients and external organizations under the supervision of the immediate supervisor
	Regular external and internal contacts, external contacts at the executive level are included in the functional responsibilities
	Constant contacts with middle-level managers of external organizations
	External contacts at a high official level, requiring complex negotiations, vision of the organization's strategy and policies. Highly professional business communication skills required
	Contacts at the level of senior officials of external organizations, the most important and large clients or partners
Factor 7. Difficulty of work
	Monotonous work, constant performance of single operations
	The work is more varied than monotonous, performing several functions that do not require special effort
	Diverse work that requires the use of elements of analysis, logical reasoning and the choice of ways to solve problems
	The work requires detailed analysis, selection of ways to solve various problems, coordination with related departments
	Work related to a creative approach to the search and systematic analysis of information, to the identification, formulation and formulation of problems, and the development of ways to solve problems
	Work related to the strategic vision of the development of the work area, integration of approaches to solving problems of different departments
Factor 8. The cost of error
	Errors affect your own work and the work of employees within the work group.
	Errors lead to disruptions in the work of employees throughout the department
	Errors can lead to financial losses on a departmental scale
	Mistakes can lead to financial losses on a fairly large scale
	An error can lead not only to large losses, but also to disrupt the work of a number of departments
	Mistakes can lead to financial losses throughout the company

A prerequisite for this stage is to determine a set of universal factors for assessing all positions (from worker to director), that is, all company personnel must be assessed according to one set of assessment criteria.

Stage 5. Distribution of factors by levels (ranking)

Factors are distributed according to difficulty levels. The correctness of the job assessment largely depends on an accurate and understandable description of each level.

The step* between levels must be the same. The number of levels themselves depends on how accurately you want to make the assessment. Thus, our virtual company used six levels of complexity to describe the factors. And she named them A, B, C, D, E, F ( table 2).

Step 6: Evaluate each level

Each level is assigned points depending on the degree of difficulty and manifestation of the level. Since the staff of our conditional company consists of only 16 people, we will not assign large points to each level, so as not to complicate the calculation methodology. Therefore, in the above example, we estimated the levels as follows:

A - 1 point;
B - 2 points;
C - 3 points;
D - 4 points;
E - 5 points;
F - 6 points.

• Use objective job scoring procedures, as subjective biases will lead to bigger problems down the line. After all, the main goal of the grade system is to ensure that the company, on the one hand, can retain its employees by paying them competitive remuneration, and on the other, maintain the efficiency of its payroll expenses;
• strive for harmonization of all positions and evaluate them according to the same rules;
• the step between levels should be the same.

The result of this stage of implementation of the grading system was a table with the listed factors and division into levels, with the determination of the number of points on an increasing basis ( table 3–5).

Table 3

Job title CEO

Evaluation factor							Significance of the factor on a 5-point scale	Final score by factor
	A 1	B 2	C 3	D 4	E 5	F 6
Employee management
Responsibility
Independence at work
experience
Level of specialized knowledge (qualification)
Contact level
Difficulty of work
The price of a mistake
TOTAL SCORE

Table 4

Job title Director of Human Resources

Evaluation factor	Level of compliance of the assessment factor and its weight, in points						Significance of the factor on a 5-point scale	Final score by factor
	A 1	B 2	C 3	D 4	E 5	F 6
Employee management
Responsibility
Independence at work
experience
Level of specialized knowledge (qualification)
Contact level
Difficulty of work
The price of a mistake
TOTAL SCORE

Table 5

Job title Financial Director

Evaluation factor	Level of compliance of the assessment factor and its weight, in points						Significance of the factor on a 5-point scale	Final score by factor
	A 1	B 2	C 3	D 4	E 5	F 6
Employee management
Responsibility
Independence at work
experience
Level of specialized knowledge (qualification)
Contact level
Difficulty of work
The price of a mistake
TOTAL SCORE

Stage 7. Factor weight assessment

Calculations at this stage are made depending on the degree of importance of each of the described factors for your company. For our virtual company, we took the importance of the factor on a 5-point scale. When calculating, you need to take into account the degree of importance by increasing points from 1 to 5 ( table 3–5).

A prerequisite for this stage is the use of the same calculation rules for each factor during the assessment.

The total score for all other positions is calculated in the same way. So, in our company the total score for other positions will be as follows:

• cleaning lady - 10 points;
• worker - 36;
• secretary - 55;
• accountant-economist - 72;
• master - 78;
• analyst-controller - 90;
• lawyer - 100;
• chief engineer - 128;
• head of technical department - 134;
• head of the HR department - 145 points.
• head of HR department - 164;
• chief accountant - 168.

Stage 8. Calculation of the number of points for each position(formulas)

Formulas for calculating the number of points

Stage 9. Distribution of points by grade

Based on the calculation results, all positions are arranged in a hierarchical pyramid depending on the total score received. Then this pyramid must be divided into grades.

Positions are grouped into grades based on the principle of receiving approximately the same number of points, based on the functions performed and depending on the degree of significance of this position for the enterprise. As a result, only positions that are similar in terms of the ratings received should be included in each grade. After the work done, our company received 9 grades ( table 6).

At this stage, it will become clear that grades are positions collected into intervals (points and salary) based on certain analogies (similarity in the content of the work performed and the equivalence of positions).

Now we must “overlay” the received points on these grades. For this purpose, a formal-static method is used. For our conditional company, the entire set of total points was divided into 9 intervals (grades). Next, we determine the boundaries of the grades. The points were distributed by grade as follows:

• the 9th grade included positions that received a total of 191 to 240 points;
• in the 8th - from 171 to 190 points;
• in the 7th - from 136 to 170 points;
• in the 6th - from 101 to 135 points;
• in the 5th - from 81 to 100 points;
• in the 4th - from 66 to 80 points;
• in the 3rd - from 46 to 65 points;
• in the 2nd - from 26 to 45 points;
• in the 1st - from 8 to 25 points.

We also need to categorize positions. Our virtual company has identified the following divisions and categories of personnel:

Stage 10. Establishment of official salaries and calculation of salary ranges

A prerequisite for this stage is to determine the amount of the official salary based on the results of point calculations. It must be carried out according to uniform rules, regardless of position and unit.

To establish the official salary, it is necessary to collect information on the market value of various types of work. In this case, it is necessary to take into account:

• internal corporate policy;
• financial position and potential of the company;
• foreign economic policy.

In our case, these will be positions included in the staff of a virtual company with up to 20 employees. If the staff is large, then in each of the grades it is necessary to identify key positions for which market parameters will be determined and, accordingly, monetary compensation for this or a similar position.

We analyze the labor market in order to understand how much they pay on average for a similar position at other enterprises, and based on the data obtained, make an informed decision.

But before entering the collected market data into the table, it is necessary to coordinate it with the company’s financial director.

The lower limit of the salary bracket, that is, the minimum official salary, will correspond to the average level of the market value of the position. But if the financial situation of the company does not allow it, then the minimum official salary will be the same as the minimum market salary.

Then, for each grade, a salary range is established, the so-called range. Remember that it is determined not for each position separately, but for the entire grade.

Since the official salary reflects the core value of the workplace, and not the effectiveness of a specific employee, it is possible to “impose” the same range for each grade.

Ranges define the upper and lower levels. The size of the ranges depends on the company's vision of how those same ranges support career development and other organizational values. Therefore, the fork, as a rule, has a constant value. The names of the fork levels will be the categories of professional growth ( scheme 1).

Scheme 1. Job salary ranges

By thus setting the average market salary as the minimum salary in our company, we automatically increase the authority and competitiveness of the enterprise in the labor market. And a 30 percent salary increase range within a single position is a strong motivating factor.

Attention! The minimum official salary of the lowest (last) grade should not be lower than state norms and guarantees, that is, not lower than the minimum wage established by the state.

Therefore, before introducing the final calculations of the grading system, it is necessary to check this official salary for compliance with its Labor Code and the Law “On Remuneration”.

The result of the work is a standard table format describing all internal corporate positions, including the names of positions, their linear affiliation, subordination, grade number, integral indicators of the value of each position, belonging to the grade level, salary range ( table 6 ).

Now you can see that the size of the points corresponds to the position of the position in the grade and, accordingly, the size of the salary.

Stage 11. Reproducing the graph and analyzing the results

Having done the entire amount of work and completed all stages, you can graphically depict the result obtained ( schedule). This graph will unite all the positions of our conditional company into a single whole, and will also build and enter the resulting hierarchical structure into a single coordinate system.

Grade schedule

A prerequisite for constructing a graph is the intersection of pieces of grades. Places of intersection are a prospect for professional growth and, accordingly, an increase in official salary. This intersection proves that a professional worker can earn more in his grade than any specialist in a neighboring grade of a higher order.

Based on this graph, various analytical conclusions can be drawn.

This diagram explains the hierarchy of positions according to the content of the work. Each position in this structure defines the requirements for each position and also allows employees to determine:

• his subordination;
• measure of responsibility;
• need for development (training).

But the most important thing is that immediately upon receiving the data from the final summary table and transferring it to the graph, it will be possible to determine in which places and in which departments there is a discrepancy in wages.

As an illustrative example, we additionally set virtual points No. 1 and No. 2.

Having carefully analyzed, we can conclude that these points “fall out” from the general corridor for calculating official salaries.

So, for example, point No. 1 indicates that the knowledge, authority, and responsibility required by this position are small, and the payment for them is significant. Accordingly, this position is overvalued on the salary scale and undervalued on the point scale.

Now let's look at point No. 2. The graph shows that everything here is exactly the opposite. We gave this position great powers, but determined the payment to be disproportionate to the workload. Therefore, this position is overvalued on the point scale and undervalued on the salary scale.

In such cases, it is necessary to review these discrepancies and eliminate them by recalculating again.

But if all positions fall into a non-deformed corridor, which is called the range of effective determination of official salaries, then your calculations were reliable and objective.

The routine work done will definitely bring you the long-awaited result.

What is the value of the grading system?

Practice has shown that the grading system has the following advantages:

1. helps manage the wage fund (payroll) and makes the payroll system flexible;
2. increases the efficiency of payroll from 10 to 30%;
3. regulates the imbalance of wages in the enterprise. When the principle of calculating salaries becomes transparent, then lazy and useless employees who are accustomed to only asking for bonuses immediately disappear. At the same time, the base salary of those who really play an important role for the enterprise is automatically increased;
4. allows, if necessary, to quickly analyze the structure of both official salaries and the permanent part of salaries, as well as monitor their dynamics;
5. is a convenient tool for determining the base salary of a new position;
6. allows you to track levels and departments where there are discrepancies in salary calculations;
7. allows you to compare your company’s payment levels with those of others in the same market segment or within the group;
8. allows you to compare the average salary of any position in your company with the market average;
9. allows you to eliminate significant inefficiency, as it reveals duplication of functions, inept management of line managers by their subordinates;
10. solves the problem of charging additional payments for work performed to standards that are below or above official standards;
11. facilitates the process of salary indexation;
12. allows you to determine how much a position at any level costs an enterprise;
13. is an effective way to integrate different-sized divisions of the holding into a single structure;
14. optimizes the allocation of labor resources.

The optimal ratio of the fixed and variable parts of salaries after the introduction of a grading system

Now let's talk about the variable part of wages, which has existed for many decades and has proven its necessity over time.

Thus, after analyzing the salary market, we can conclude that their variable part sometimes reaches 90%. This shouldn't happen. If the bonus exceeds the constant part of the salary, then its importance will be leveled, it will play the role of “patching holes” in the wage system.

This is what the salary structure looks like before the introduction of the grade system ( scheme 2).

Scheme 2

This is what the salary structure should look like after the introduction of the grade system ( scheme 3).

Scheme 3

Let us explain why this should be so.

As practice shows, in modern market conditions optimal ratio fixed and variable parts of wages should be 60% to 40%. Only such a ratio, when the constant part exceeds the variable part, forces workers to fulfill the plan, and thus receive a larger part of their earnings. And the second (variable) part will establish final fairness, since it will only include bonuses that make it clear what the employee received them for (for his contribution to the results of a department or an entire company).

And all other variable part allowances (bonuses, benefits) should disappear. Because they are faceless and unfounded. The fewer additional payments in the variable part, the better the employee understands what he must do in order to receive the variable part of the salary.

It is desirable that, in parallel with the grade system, a new system for calculating the variable part of the salary is introduced. This technique is called KPI (Key Performance Indicators- Key Performance Indicators), but it is intended to calculate the efficiency and effectiveness of work as a percentage.

Today the system of grades and KPI- these are the two best salary calculation systems. Together, they completely unify the calculation of both components of the salary (fixed and variable). But until your company has a unified system for calculating the variable part, it is necessary to bring to the attention of every employee that bonuses are given not just for performing functional duties, but for quality and quantity.

In order for an employee to understand the conditions under which bonuses are awarded, there should be no more than three of them:

1. minimum and average bonuses are awarded for contribution to the department’s performance results, as well as for the quality and quantity of fulfillment and overfulfillment of obligations (plans);
2. maximum bonus - for contribution to the company's results and for individual records for super-class specialists;
3. a special bonus, which is awarded for improvement proposals, the implementation of which brought the company profit in fact. Let's say an employee came up with a plan to improve the sales system or reduce the cost of some technical costs, developed a brand or a new type of product (which others have not thought of) - management should encourage this in monetary terms and in proportion to the effect of the result of the project implementation.

All Western companies work according to this scheme. In order for both the fixed and variable parts of the salary to be unified according to a single principle and brought into line, so that they do not have to manually formally determine who should receive what percentage of the bonus, they introduced the above-mentioned system in parallel with the grading system KPI to evaluate work based on the results of fulfilling obligations.

Table 6. Table of job evaluation grades Download (.pdf 1.1 Mb)
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* Size (distance) between the previous and next difficulty level. Expressed as a mathematical value, usually determined as a percentage or in numbers. In the given example, we took the simplest, but evenly increasing step - 1, 2, 3, 4, 5, 6 points.

One of the important issues in the organization of wages is the formation of a close relationship between labor results and remuneration, while the interests of employees regarding the compensation package, especially social benefits, must be taken into account. The procedure for forming qualification groups and developing interqualification ratios creates the foundation for the implementation of the entire compensation policy of enterprises. A practical tool that makes it possible to evaluate positions and jobs and form qualification groups on their basis is the grading system.

An important issue in organizing wages is ensuring objective differentiation, developing a competitive and transparent compensation policy, creating a close relationship between labor results and remuneration, taking into account the interests of employees regarding the structure of the compensation package, especially social benefits.

To ensure objective differentiation of the main (basic) part of wages, the procedure for forming qualification groups and developing interqualification ratios is essential, which, in turn, is the foundation, the basis for the development of the entire compensation policy of enterprises, organizations, institutions (hereinafter referred to as the enterprise).

The formation of qualification groups in the past - before the period of market transformations - was an integral element of the tariff system. Qualification groups (categories) were determined on the basis of unified tariff and qualification reference books. In many domestic enterprises, this practice has been preserved to this day, although in most cases it does not meet the needs of the business, the strategic goals of the enterprise, does not take into account the specifics of its activities and, most importantly, does not perform a motivational function, negatively affecting the competitiveness of the compensation policy.

It is necessary to find out: why the formation of qualification groups based only on the pricing of work in most cases does not meet modern requirements? Within the traditional tariff approach, this or that position belongs to the corresponding categories of the tariff schedule and salary scheme based on the qualification characteristics of the workers' professions. They are contained in the relevant editions of the Directory of Qualification Characteristics of Workers' Professions (hereinafter referred to as the SKHP). In Ukraine, work on the development of qualification characteristics of workers’ professions continues, individual issues of the SKHP are only planned for publication, therefore, in the current National Classifier of Ukraine DK 003:2010 “Classifier of Professions” (hereinafter referred to as KP), there are no references to individual issues of the SKHP. The compensation policy of the enterprise should be developed and, if necessary, improved today.

The current qualification characteristics are typical; they do not take into account the specifics of the organization, its size, the number of management levels, the relationship with the external environment and, above all, the value of the positions.

The CP provides for the creation of derivative names of professions from the basic ones while preserving the code of the basic professions, which will be reflected in the list of tasks and responsibilities for these professions, powers and responsibilities (this applies to the positions of managers and their deputies or assistants), including the value of the positions . In addition, globalization processes, innovative trends, and the development of management technologies predetermine the emergence of not only new types of work that are not provided for by the standard qualification characteristics of certain professions, but also new professions and positions that, in practice, appear before the corresponding changes and additions are made to the CP and SKHP issues.

Based on the requirements contained in the qualification characteristics, it is possible to form only enlarged groups according to the criteria of “complexity of work” and “level of qualifications”. In this regard, the formation of qualification groups and the development of interqualification relationships regarding wages can be carried out based on the results of the assessment of positions and jobs (hereinafter referred to as positions)1.

A practical tool that makes it possible to evaluate positions in an organization and, on their basis, form qualification groups, is a system of grades.

The terms “grade” and “grading” come from the English word “grading”, which translates as classification, sorting, ordering.

The grading procedure involves the evaluation of positions and their distribution according to their importance for the organization.

The introduction of a grade system for job evaluation and remuneration makes it possible to solve the following problems:

determining the relative value of existing positions in terms of enterprise strategy;

optimization of the remuneration system;

conducting employee assessments regarding suitability for the positions they occupy;

creating additional conditions for career growth, etc.

Some scientists and practitioners argue that the tariff approach to constructing a constant part of wages and the grade system are diametrically opposed tools. In our opinion, they are not mutually exclusive.

Firstly, one of the elements of the tariff system is the qualification characteristics of workers’ professions, which set out their tasks and responsibilities; requirements for special knowledge, qualifications, specialization, examples of work are given, etc. When hiring or appointing to a position, enterprises must adhere to the qualification requirements (level of education and work experience) provided for in the relevant issues of the SKHP. These provisions are also taken into account in the grade system of remuneration.

Secondly, when constructing a tariff system of remuneration, in particular, the “fork” principle is used. It is this principle of establishing official salaries that was introduced in the grade system.

The stages of developing a grade system for job evaluation and remuneration are depicted in drawing.

Rice. Stages of developing a grade system for job evaluation and remuneration

Stage I. Job descriptions

Positions are described based on the results of job analysis. A variety of job analysis methods are used (interviewing, questioning, observation, etc.).

The interview can be carried out on the following questions:

• What are your job responsibilities?
• What are you responsible for?
• Where is your workplace located?
• What equipment do you use?
• What are the requirements for your level of education, training, and skills for this position?
• What results are you responsible for?
• Are you planning certain activities?
• Do you fill out any paperwork?
• Does your work require contacts with employees of structural divisions, representatives of other organizations, or individuals?
• What instructions and regulations govern your work?
• Do you supervise other people's work?
• How often are you monitored?
• How are the results of your work assessed?
• What conditions do you work under?
• What kind of physical, emotional and intellectual demands does your job require?
• Are you responsible for the safety of others?

Questioning is a method of obtaining information from employees in written form. Its use makes it possible to obtain information from a large group of people. When developing a questionnaire, it is necessary to formulate the question clearly and clearly. It should be simple in meaning and not contain too many technical expressions. It is also recommended to provide an explanation of how the survey results will be used.

Work process monitoring is used primarily in cases where a worker's job consists of repetitive activities and his tasks are short in duration.

Note. The work process observation method cannot be used for work processes that involve mental activities, for example, for the work of an economist, technologist, lawyer, etc.

Based on the results of the job analysis, job descriptions are compiled, which may contain the following data:

• general information (job title; date of compilation of the job description; name of the structural unit; name of the immediate supervisor’s position, etc.);
• duties and responsibilities;
• relationships with other employees and external organizations (accountable; controls; interacts; external relations, etc.);
• powers;
• standards for performing duties;
• working conditions;
• personal qualities, character traits, skills and level of education necessary to perform the job.

Stage II. Determining the value of positions

In practice, various methods are used to determine the value (significance) of positions in an enterprise, which can be combined into two groups: non-analytical and analytical methods.

Non-analytical methods include methods of ranking, classification, and paired comparisons.

According to the ranking method, a specially created expert commission, consisting, as a rule, of managers at various levels of management and experienced professionals and specialists, distributes positions according to their importance for the enterprise. The method is based solely on subjective assessment, so the ratings received from experts may differ significantly, which will complicate the procedure for comparing them. Statistical methods can be used to process the assessment results.

The classification method involves grouping positions according to certain characteristics: personnel category (managers, professionals, specialists, technical employees, workers), management level (top, middle and lower managers), qualification category (lead, first or second category, without category) and etc. The assignment of positions within each group to a particular grade is carried out on the basis of subjective assessments of experts. The classification method can be used as an auxiliary method along with the ranking method.

The paired comparison method involves comparing positions in pairs with each other. To do this, you need to create a table of possible pairs of positions. The more important (valuable, significant) position in the pair must be indicated using the signs “+” and “-”. If positions are of equal importance, the “=” sign is placed in the corresponding cells. After this, it is necessary to determine the amount “+” for each position (Table 1). It is easier for an expert to identify a more important (valuable, significant) position out of two (in a pair) than among the entire set of positions. However, using this method becomes more difficult as the number of positions increases.

Table 1. Matrix of paired comparisons of positions

Among the analytical methods, the factor method and the scoring method stand out.

Within the factorial method, several approaches to determining the importance of positions can be distinguished. The first approach involves determining statistically stable relationships between a large number of characteristics based on factor analysis. This approach is labor-intensive and is therefore used by large research and consulting companies. The second approach is simpler for practical use and involves the selection of compensation factors that are significant for the enterprise. Compensation factors are developed with the involvement of enterprise managers, since only taking into account their opinion can one formulate (or select from a proposed set) factors that should influence the salary levels provided for the corresponding positions in the organization.

The factor method is used in combination with the scoring method, which makes it possible to quantify the importance of positions based on a number of factors and compare them with each other. This approach to determining the significance of positions is called factor-score evaluation of positions. Let us consider in more detail the technology for developing job evaluation factors and rating scales.

Determination of job evaluation factors

To rank jobs according to their intra-organizational value, it is necessary to develop evaluation factors. The factors must take into account the specifics of the enterprise, be simple to understand and uniform for all positions.

The methodology of the American consulting company Hay Group provides for three groups of factors: knowledge and skills (know how); problem solving; responsibility (accountability). Each factor includes several subfactors. For example, the “knowledge and skills” factor includes professional, managerial knowledge and level of communication. Each subfactor has a different number of assessment levels. When developing job evaluation factors, the author of the methodology, Edward Hay, proceeded from the fact that any work activity has three stages: input, process and output (result), respectively, and the job evaluation method should take this into account. The input integrates the knowledge and skills required to perform the job in that position, the process is characterized by the ability to solve a problem, which as a result, i.e. output, affects the scope of responsibility.

The methodology of the international company Watson Wyatt involves determining the category to which positions belong. Within the relevant category, positions are assessed based on the following factors:

A - professional knowledge (functional knowledge);

B - business expertise;

C — leadership level;

D - problem solving;

E — nature of impact on business;

F—area of ​​impact;

G - communication skills (interpersonal skills).

Each factor has three assessment levels: factor A - levels A1, A2 and A3; factor B - levels B1, B2 and B3, etc.

The Kodak company's job evaluation methodology includes four groups of factors:

knowledge requirements;

responsibility (accountability);

working conditions;

relationships with others.

At domestic enterprises, the following factors with various options for combining them are used to evaluate positions:

• employee management;
• responsibility;
• independence at work;
• working conditions;
• experience;
• level of special knowledge (qualification);
• level of contacts (communication skills);
• complexity and novelty of tasks;
• cost of error, etc.

To define clear evaluation criteria, descriptive job evaluation levels based on factors must be developed. The number of assessment levels may vary. It must be remembered that too few levels reduce the accuracy and, accordingly, the validity of the job evaluation results. If there are too many levels, the procedure for describing them becomes more complicated and the boundaries between assessments are blurred. Each factor can have a different number of levels, which is quite often observed in practice. However, to ensure a single (unified) approach to assessment, it is recommended to use an equal number of descriptive levels for all factors.

The descriptive levels for the employee management factor are as follows:

• no subordinates;
• there are no direct subordinates, periodically coordinates the work of other employees within the assigned task;
• coordination of the activities of the working group (2-3 persons);
• leading a group of subordinates to carry out tasks on a regular basis;
• department management: task setting, control, stimulation; both vertical and horizontal interaction are necessary;
• management of a group of departments; predominantly vertical power interactions.

Each assessment level must be assigned a certain number of points. In practice, various options for constructing rating scales are used. The simplest approach to constructing a scale:

first level - 0 points;

second level - 1 point;

third level - 2 points;

fourth level - 3 points;

fifth level - 4 points, etc.

Some Western companies use a scale with “+” and “-” signs: -3; -2; -1; 0; +1; +2; +3, etc.

Establishing the weight (significance) of factors

In practice, various methods are used to determine the weight of factors. The establishment of weight should be carried out by a group of experts, which may include specialists who develop this system, managers at various levels of management, leading professionals and specialists. The simplest method in practical use is the scoring method. Experts must evaluate the importance of factors using the proposed scale (Appendix).

gave all factors the same rating;

operated with only two assessments during assessment;

gave ratings that differed by two or more points from the ratings of other experts.

The weight of each factor is determined by the sum of points given by experts for each factor. The total points can be “weighted” and weight coefficients can be determined using the formula:

where is the sum of points scored by the th factor; n is the number of factors.

Establishing the weight of factors can be done by distributing a certain amount of points (usually 100 or 1000 points) between factors taking into account their significance (Table 2).

Table 2. Weight coefficients of assessment factors, %

The established weight coefficients can be taken as the maximum number of points for the relevant factors, then the points assigned to each assessment level will be weighted. When evaluating positions, the scores given by factors should not be multiplied by weight coefficients (Table 3).

Table 3. Point scale for rating positions, point

After selecting evaluation factors and determining their weight, it is necessary to evaluate all positions on key factors.

The results of assessing individual positions for an enterprise publishing newspapers and magazines are shown in Table 4.

Table 4. Results of job evaluation, score

Stage I. Construction of grades

Depending on the number of points scored (using the factor-point method) or established ranks (using non-analytical methods), positions can be arranged hierarchically. After this, they must be combined (grouped) into qualification groups (grades).

A grade is a range of “grades” (scores) or ranks of positions in which they are considered equal and of equal value to the enterprise and accordingly have the same pay range. Thus, each grade has its own payment range. Each range can be divided into categories with corresponding interqualification ratios (tariff coefficients or official salaries).

The range can be constructed in the form of a “fork”. The “fork” approach has become widespread in practice, so it is this approach that is taken as the basis for establishing interqualification ratios (official salaries) for each grade (stage V).

Grades can be formed in a variety of ways. When non-analytical methods are used, grades are formed based on the ranks established for positions. Ranks are divided into ranges based on the subjective understanding by managers and specialists developing remuneration systems of the grouping of positions acceptable for this enterprise (Table 5).

Table 5. Formation of grades according to established ranks

When using the factor-score method, the main task that must be solved to combine positions into grades is to determine the ranges (intervals) of ratings (scores) in each grade.

If the range of scores for the 4th grade is 61-80 points, then the 4th grade will include the positions (see Table 4) of head of the layout and design department (64 points), head of the journalism department (71), head of the advertising department (72 ), chief accountant (72), deputy editor-in-chief (76) and head of the marketing and subscription department (76).

There are several approaches to establishing grade ranges. Here are two of them:

1. Determining grade ranges by dividing the entire set of points into equal intervals.

In the example we considered (see Table 4), the minimum score is 9, the maximum is 100. If we want to combine all positions into five grades, then the 1st grade will include positions that scored less than 20 points, the 2nd - from 21 up to 40, 3rd - 41-60, 4th - 61-80, 5th - over 81 points.

The advantage of the approach is its simplicity. The main disadvantage is that positions belonging to the same category (professional group) can be included in different grades, although the ratings they receive are quite close. Thus, according to the ranges we have established, the position of a correspondent, rated at 40 points (see Table 4), will be included in the 2nd grade, the position of a journalist (42 points) - in the 3rd. This also applies to the position of specialist in public relations and press, rated at 39 points, and the position of specialist in methods of marketing expansion (42 points).

2. Determination of grade ranges based on grouping positions belonging to the same category (professional group) and having minor differences in scores.

In practical application, this approach is more complex, but it is characterized by flexibility in constructing ranges, rationality and logic.

What is meant by the characteristic “minor differences in scores”? For example, in the methodology of the consulting company Hay Group, a 15 percent difference in assessments (scores) is considered “almost imperceptible” according to the Weber-Fechner law, which states that there is a “sensation threshold” value, exceeding which makes the difference noticeable. Therefore, if the difference between job evaluations and the evaluation of a reference position for this group is no more than 15%, then the positions can be considered equivalent (equal) and classified as one grade.

Grades formed according to the second approach, based on the results of job evaluation (scores), can be placed as follows:

6th grade:
Publishing director
Chief Editor
Deputy Chief Editor
Head of Marketing and Subscriptions
5th grade:
Chief Accountant
Head of Journalism Department
Head of Layout and Design Department
Head of the Editorial Department
4th grade:
Journalist
Specialist in market expansion methods
Correspondent
Accountant
Public relations and press specialist
3rd grade:
Scientific editor
Photojournalist
Literary editor
Referent
2nd grade:
Computer layout operator
Registration and Subscription Accounting Specialist
1st grade:
Computer data entry operator

Stage V. Establishment of interqualification ratios (official salaries) for each grade

After the formation of grades, it is necessary to establish ranges to determine the basic (basic) salary for positions included in each grade.

When establishing a salary range for each grade, enterprises often focus on market wage values. A variety of approaches are used:

the lower value of the official salary is at the level of the market average, the upper value exceeds it, for example by 30%;

the average official salary is at the level of the average market value, the maximum is 15-30% higher than the average, the minimum is 15-30% lower than the average, etc.

Indeed, in order to develop a competitive compensation policy, it is necessary to take into account the market values ​​of wages and official salaries of specialists in the relevant professional groups. But ensuring objective inter-office salary ratios is no less important. Focusing only on market wage values ​​can lead to a violation of internal fairness when setting official salaries. In this case, the value of the position will be determined solely by the labor market conditions without taking into account the internal needs of the enterprise, its specifics, which can lead to workers feeling unfair in wages with all possible consequences.

In this regard, when developing a “fork” of official salaries, it is necessary to take into account both external (market values ​​of wages and official salaries of specialists in the relevant professional groups) and internal factors (the value of the relevant positions, financial capabilities, etc.).

Ranges can be formed in two ways:

1) establish a range of official salaries for each grade;
2) determine the intervals of interqualification ratios (coefficients). These coefficients show how many times the official salaries of the corresponding grade are greater than the minimum wage determined at the enterprise2.

The intervals of coefficients established in the second method are transferred to the “fork” of official salaries by multiplying the minimum and maximum coefficients in the “fork” by the minimum wage established at the enterprise.

Although in practice the first method is more common when introducing a grade system for evaluating positions and remuneration, in our opinion, the second method is better from a methodological point of view. It makes it possible to more accurately take into account the needs of the enterprise in wage differentiation, to respond more quickly to changes occurring in the labor market, in labor legislation (increasing the level of the minimum wage), the financial capabilities of the enterprise, etc.

Main characteristics of the ranges:

the ratio between the average coefficient of the lowest grade and the average coefficient of the highest grade;

type of growth of average coefficients in the range;

range width - the difference between the maximum and minimum coefficients in the range;

range overlap.

Let us consider in more detail the specified characteristics and the main aspects that need to be paid attention to when developing ranges.

The first characteristic is the ratio between the average coefficient of the lowest and the average coefficient of the highest grades. The solution to this issue comes down to determining: how many times the official salaries (it is necessary to note that we are talking about official salaries, and not about the entire salary, much less the compensation package) of senior management managers should be greater than the salaries of workers performing the simplest work.

If a certain ratio is small, for example 1:2, 1:3, this leads to “equalization” and, accordingly, the remuneration system will not take into account the difference in complexity, responsibility, working conditions, etc. of positions that belong to different grades. In this case, all the work on assessing positions to determine their value in the organization, ensuring objective differentiation of wages, and strengthening the motivation of the remuneration system will be nullified.

On the other hand, a large ratio (1:10 or more) will lead to social injustice, decreased motivation, increased turnover of workers of lower grades, decreased interest of senior management in the results of the enterprise’s activities and the receipt of bonuses and bonuses, since they will have high guaranteed official salaries.

Depending on the financial capabilities of the enterprise, the specifics of the activity, the number of personnel, the number of hierarchical management levels and, accordingly, the number of qualification groups (grades), this ratio can range from 1:4 to 1:8.

The second characteristic is the type of growth of average odds in the range. There are several options for increasing average values:

the first option is a constant absolute and regressive relative increase in average values ​​in the range. It is the simplest to build;

the second option is a progressive absolute and relative increase in average values;

the third option is progressive absolute and relative growth of average values. For all other levels of conditions, the third option is economically convenient, since the coefficients in the grades that include the largest number of employees (3rd, 4th grades) are the lowest compared to other options;

the fourth option is a regressive absolute and relative increase in average values ​​in the range.

The third characteristic is the width of the range - the difference between the maximum and minimum coefficients in the range. The width of the range depends on the first two characteristics. The greater the ratio between the average coefficient of the lowest grade and the average coefficient of the highest grade, the greater the width of the range for all other levels of conditions (type of growth of average coefficients in the range, overlap in the range).

For various qualification groups (grades), the same or different range widths can be established. With constant absolute and regressive relative growth of average values ​​in the range (first option), the width of the range will be the same for all grades. For all other options, the width of the ranges will differ.

Note. When constructing ranges, it is advisable to take into account the need to stimulate individual results and achievements of workers in certain categories and professions (positions). If there is a need for this, then the range for the corresponding qualification group (grade) should be wider.

Flexibility in constructing interqualification ratios (Table 6), the ability to maneuver coefficients (their changes) within the range established for a certain group (grade), create additional opportunities for building the career growth of employees under conditions of limited opportunities for job advancement in the organization.

Table 6. An example of constructing interqualification relationships

The fourth characteristic is range overlap. The use of cross construction of ranges creates additional opportunities for motivating employees of lower qualification groups (grades), stimulating them to achieve new levels. Under such conditions, a competent and experienced employee whose position belongs to a lower grade can receive a higher salary than an employee who has just come to work for a position in a higher grade.

When constructing ranges, the lower value of the qualification coefficients Kmin in a grade can be kept at the level of the average value of KAverage of the previous grade to (not at the level of) the maximum value of Kmax of the previous grade. In the given example (see Table 6), Kmin of the 2nd grade can be set in the range 1.4≤Kmin>1.8 (defined at the level of 1.6), Kmin of the 3rd grade - in the range 2.0≤ Kmin>2.4 (defined at level 2.2), etc.

According to Table 6, the ratio between the average coefficient of the lowest grade and the average coefficient of the highest grade is 1.4:4.4, the minimum is 1.0:4.0, the maximum is 1.8:4.8. Type of growth of average coefficients in the range: constant absolute and regressive relative. Range width: the difference between the maximum and minimum coefficients in the range for all grades is 0.8. Overlap in ranges: the difference between the maximum coefficient of the previous grade and the minimum of the next grade for all grades is 0.2.

The developed version of constructing interqualification ratios (coefficients) can be taken as a basis and adapted to the specific needs of the enterprise. In particular, in the given example of the formation of grades based on the results of evaluating positions for an enterprise that publishes newspapers and magazines, the largest number of employees belong to the 3rd and 4th grades. Most positions in these grades directly affect the final result. The competitiveness of publications depends on the productivity, quality and efficiency of workers’ work. There are limited career opportunities in the publishing industry. Therefore, in order to more fully take into account the individual needs and personal achievements of employees, it is advisable to increase the width of the range for grades 3 and 4. An adapted version of constructing interqualification ratios under the conditions of maintaining the ratio between the average coefficients of the lowest and highest grades (1.4: 4.4) is given in Table 7.

Table 7. Adapted version of constructing interqualification relationships

In this option there is a mixed type of growth of average coefficients in the range: up to the 3rd - 4th grades - progressive, starting from the 4th - regressive. The absolute growth up to the 4th grade is 0.4; 0.6; 0.8, relative increase to grade 3 - 22.2; 25.0 is a progressive type, i.e., with increasing grade, absolute and relative growth increases. Starting from the 4th grade, the absolute growth is 0.8; 0.7; 0.5, relative growth - 25.0; 17.9; 11.4 - regressive type, i.e. with increasing grade, absolute and relative growth decreases. Average values ​​are increasing, but growth rates are decreasing. The width of the range ranges from 0.8 (1st, 2nd and 6th grades) to 1.2 (3rd, 4th grades). The overlap in ranges for all grades is 0.4.

When an employee is appointed to a position, he is set the minimum official salary of the grade to which the corresponding position belongs.

Note. Some enterprises set employees' official salaries below the minimum for the probationary period when hiring. This practice is unacceptable.

Individual qualification coefficients of employees may be revised. Taking into account the personal achievements of employees, the results and length of their work at the enterprise, these coefficients can either increase or decrease, but within the range of the corresponding qualification group. A change in the qualification coefficient will accordingly affect the size of the official salary. The enterprise must develop clear rules for increasing and decreasing qualification coefficients, which are familiarized to all employees.

The developed intervals of coefficients are translated into the “fork” of official salaries by multiplying the minimum and maximum coefficients in the “fork” by the minimum wage established at the enterprise. For example, the minimum wage (actually salary) at an enterprise is set at 950 UAH, then the ranges (“range”) of official salaries will be as indicated in Table 8.

Table 8. An example of establishing salary ranges, UAH.

The established salary ranges (“forks”) must be compared with the average market salaries. If, as a result of comparison, the average market values ​​of official salaries for individual positions are higher than those provided for by the established “bracket” of the corresponding grade, several methods can be used to ensure that the official salaries of some positions correspond to the market value.

Firstly, reevaluate the position. If a position was undervalued, it must be classified as a higher grade.

Secondly, reconsider interqualification ratios:

change the ratio between the average coefficient of the lowest grade and the average coefficient of the highest grade. It must be remembered that changing the ratios can lead to a significant increase in the wage fund for official salaries;

strengthen the progression of the coefficients of the corresponding qualification groups (grades), which will cause a change in the width of the ranges (“forks”);

increase overlap in ranges.

Third, expand the interval (“fork”) only for the corresponding grade, i.e., raise the maximum salary.

Fourth, increase the minimum official salary. This may lead to an increase in the wage fund for official salaries.

Fifthly, introduce personal allowances for certain professional groups (positions) to maintain the established interqualification ratios.

These measures are necessary to reduce staff turnover among certain professional groups due to the low competitiveness of the enterprise's compensation policy.

The final procedure of this stage is a comparison of the actual official salaries of the enterprise’s employees with the “forks” of official salaries established for the corresponding grade. Based on the comparison, it is necessary to adjust official salaries: raise them for those positions whose salaries are lower than those provided for by the “fork”. As for salaries above the upper limit of the “fork”, they should in no case be reduced. These positions should also be revalued or temporary increases introduced. Gradually, salaries should level out as the minimum official salary increases.

Stage V. Introduction of the grading system

At the stage of implementing the grading system, it is important to inform the company’s employees about changes in official salaries. The main provisions on the remuneration system must be reflected in the relevant internal documents (collective agreement, regulations on remuneration, etc.). Information about the grading system can be posted on the enterprise website.
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1 The procedure for evaluating jobs is similar to the procedure for evaluating positions.
2 This method is typical for the tariff approach to the development of a constant part of wages.

In medium and large companies, payroll management is a complex issue, and an unfair and/or non-transparent wage system can significantly reduce employee productivity. Therefore, the development of an effective, transparent system of personnel incentives is a pressing problem for many companies.

In the domestic conditions of the emergence of a market economy, determining the level of wages solely on the basis of market data is not just a difficult task, but often impossible, since “grey” wages are widely used in the country and there is no developed market for benchmarking research.

Economists have proposed many methods for developing corporate compensation systems, but one of the most popular continues to be grading 1. The most famous grading systems offered by companies Watson Wyatt And Hay Group, but other options are also used.

System grades 2(position positions) is a kind of corporate “table of ranks”, in which each cluster (grade) of positions corresponds to its own salary level. Grading is a method of creating a universal hierarchy of positions (ranks) for all company personnel; an assessment system that allows you to determine acceptable levels of compensation for all employees based on a comparison of the relative value for the company of different areas of work (positions). The main advantage of grading is the “measurement of the immeasurable”: the translation of the intangible indicator “the value of an employee’s work” into a monetary equivalent.

Based on grading, it is possible to build a corporate compensation and benefits policy, which will allow optimizing personnel costs, not through a formal reduction in payroll, but through improving the organizational structure and staffing, more efficient planning of personnel costs, etc. An effective grading system makes it possible to simplify administration of the corporate system of material incentives, determine the acceptable amount of remuneration for newly introduced positions, in addition, this is a tool for influencing the main components of personnel costs.

For a company employee, the new system allows:

understand the place that his position occupies in the existing hierarchy of positions and evaluate its role for the company;

receive fair remuneration for work - depending on the level of complexity, responsibility, etc. of the work performed;

assess the prospects for your professional and career growth;

get the opportunity for “horizontal” career development (promotion through the levels of skill within one position by increasing the complexity of tasks, expanding the range of responsibilities and powers) - changing the grade or subgrade and the associated level of remuneration;

consistently acquire new professional knowledge and skills necessary for effective work in a higher position.

The decision to introduce a grading system in a company involves organizing a large project that is quite financially and labor intensive. Regardless of whether the project is implemented by the company’s specialists or by an external provider, it will be necessary to carry out a large complex of analytical, methodological, evaluation and other works. In addition to the direct costs of this research and the development of a corporate grading system, it is necessary to provide for the costs associated with the implementation of the new remuneration system and its administration. It is equally important to provide for losses associated with people’s resistance to innovations, which are inevitable with any organizational changes, and even more so in such important issues for every person as wages.

First, you need to clearly formulate the goals of the project. What exactly does the company need: optimize payroll costs, “even out” pay for similar positions in different divisions (holding companies), identify “key” positions and develop a policy for attracting and retaining the best specialists for them, audit the level of wages in the company and adjust it in accordance with market realities.

As a rule, the project team is given a number of tasks:

streamlining the hierarchy of positions;

determining the value of all positions in the company and the pay range (“brackets”) for each class of work;

optimization of organizational structure and staffing.

Based on the grade system, the company’s social policy, motivational programs and career development programs are also developed (employees are aware of changes in income levels during various career moves). The main thing is that the company gets the opportunity to select the right people for key areas of activity and reasonably pay big money to its best employees.

The algorithm for developing a model of a remuneration system in a large company is quite complex. As a rule, this is a complex consulting project that includes several stages - analytical and design ( rice. 1).

Rice. 1. Algorithm for developing a model of the remuneration system

A project to develop a remuneration system for a small company is much simpler, however, it must also consist of a number of mandatory steps:

job descriptions;

determination of job evaluation criteria;

evaluation and classification of positions;

salary analysis for each job class;

setting salary ranges.

Let's take a closer look at these steps.

Job Description (Job Description) - an official document that defines the range of main responsibilities, areas of responsibility and authority, final results of activities, lines of subordination and accountability, as well as the basic requirements for an employee in this position. Creating such a document is a very labor-intensive process. The most commonly used methods are taking photographs of the working day, keeping a diary, etc. The job description allows the company to:

clearly formulate the functional responsibilities of this position;

evaluate each position;

determine the set of knowledge, skills and abilities necessary for an employee to perform this work efficiently;

give a fair assessment of the performance of employees in each position based on clearly defined criteria;

estimate importance each position for the company;

determine the basis for the processes of searching, selecting and hiring employees;

assess staff training and development needs.

The outcome of the job description activities is job profile (Job Profile), which is a standardized form that includes the following sections ( application):

Responsibilities.

Performance indicators.

Responsibility.

Authority.

Basic requirements (key knowledge, abilities, skills and personal qualities).

Organizational unit
Function

Contacts (external/internal, contact frequency, level, etc.)

Internal:

The process of developing a job profile should involve specialists who have a clear understanding of the requirements for this position. For example, a company can create a working group that will include not only HR department employees, but also department heads, subject matter experts, and executives ( rice. 2). The following requirements apply to the job description:

describe the activities, not the portrait of the employee;

describe functional responsibilities;

do description work (based on the assumption that it is being performed in full and at the appropriate level), and not its assessment;

make concise and clear statements, avoid general phrases.

Rice. 2. Development of job profiles

The result of the first stage of the project to build a remuneration system is: a procedure for describing a position, a corporate standard for describing a position, key requirements for each position. For convenience, you can develop special software that will help you compile, store and change job descriptions (a consolidated database of job profiles).

Job evaluation criteria. Job evaluation procedure ( rice. 3) is necessary to determine the relative weights of each type of work, which makes it possible to consistently and objectively compare different positions at the level of divisions or branches of the company. The following requirements apply to the job evaluation methodology:

evaluate the work, not the employee;

when estimating, proceed from the assumption that the work is being completed in full;

evaluate the work currently being done.

Job evaluation is carried out on the basis of selected criteria, which can be:

generalized and formal (education, experience, subordination, independence, level of contacts, complexity of work, cost of error, etc.);

personal and specialized (professionalism, communication competence, responsibility, compliance with corporate culture, leadership qualities, personal characteristics, etc.).

Rice. 3. Job evaluation

The most commonly used criteria are:

Qualifications and experience. This criterion usually involves the assessment of all knowledge, skills and abilities acquired as a result of basic training, additional training, as well as work experience necessary for the high-quality performance of duties in this position in full.

Problem solving. Usually the number, degree of complexity and significance of the problems that need to be solved by an employee in a given position are assessed.

Contact. The level of contact and complexity of interactions with other people - external and internal contractors, which must be carried out in the process of solving problems defined by this position, as well as the required level of communication skills are assessed.

Responsibility. The degree of responsibility for official actions and the consequences of performing these actions, as well as the impact of this position on the final result of the company’s activities and the level of direct/indirect financial liability are assessed.

Control. The volume and complexity of management functions for a given position is assessed.

In addition to evaluation criteria, they can be established and described sublevels assessments. The step-by-step difference between adjacent sublevels is assessed in points (they determine the value of each sublevel).

In a large company, a wide range of experts are involved in assessing positions, reflecting the positions of all interested groups; in a small company, the work of assessing positions can be performed by one or two experts.

Each criterion is assessed with a certain number of points. The scale of all possible assessments is divided into a number of intervals, which are called grade(in large companies it is often necessary to allocate and sub-grades). The total amount of points received for all criteria determines value each specific position for the company. Depending on the number of points received, a specific position falls into one or another interval - it belongs to a certain grade.

The result of the second stage of the project to build a remuneration system is: a policy in the field of job evaluation, a job evaluation tool, a policy in the field of job titles (but more often a national classifier of professions is used).

Grading (ranking) of positions. All positions available in the company are grouped by the most common position levels. Based on the assessment of groups of positions or individual positions (depending on the size of the company), they are assigned certain grades:

Grade A. This grade includes positions of senior managers and specialists responsible for developing the company's strategy, corporate policies, new programs, and business plans. Work in these positions involves solving complex problems and is characterized by a high degree of independence and responsibility.

Grade V. This grade includes positions of managers and mid-level specialists. Working in these positions places high demands on management skills, professional knowledge and personal qualities. It involves a high degree of contact, responsibility and creativity.

Grade S. This grade includes positions that make up the backbone of the company. Work in these positions does not initially impose high demands, however, it is assumed that in the process of activity, employees will certainly acquire special knowledge, skills and abilities. This work is highly regulated.

Grade D. This grade includes service positions. Work in these positions involves performing simple, same-type operations and requires only basic skills.

Analysis of the qualitative and quantitative composition of the company’s personnel

It is also useful to present the results of such an analysis in the form of diagrams ( rice. 4).

Click image for a larger view

Rice. 4. Diagram of the distribution of positions by grade

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1 Grading(from English grading) - classification, sorting, ordering; qualification scale.
2 Grade(from English grade) - degree, rank, class, rank, level; a group of people of equal social status, equal rank; classify, sort, rank, arrange by rank, by degree, etc.

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