What is personnel grading? New technology for staff motivation is an advantage of the grading system in remuneration. What is the value of the grading system?

Find out why such a remuneration system is needed and why it should be implemented in the company. The article contains the main pros and cons of the method, ways to evaluate positions, and practical tips to avoid mistakes.

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What is grading

The grade system was developed in the USA back in the 20th century for government agencies. With its help, funds are distributed to pay workers with the same qualifications, but performing different tasks. The system takes into account many parameters that affect material rewards:

• management functions;
• presence of subordinates;
• participation in the organization's profits;
• experience, independence in decision making;
• the cost of an employee's error.

The grades are similar to the categories in the tariff system. Positions are built into a hierarchical chain, which is formed based on the employee’s value to the business. Each grade is assigned a wage range and an individual social package. This approach eliminates many of the problems associated with fund distribution wages.

An HR System expert will help you choose the right one for your company. one of two grade system options

Job grading is suitable for medium and large companies. It is irrational for small firms to develop a system due to high time costs, labor intensity, financial investments etc. After its implementation, you will not have to rename positions to determine individual salaries. Everyone will receive as much as they deserve at the moment. read in the "Personnel System".

What problems does personnel grading help solve?

If the organization has no problems with personnel, including financial ones, the team works stably and with high efficiency, and a clear bonus system is used to reward the best specialists, it is irrational to introduce grades. Before you start developing and implementing a system, think about what problems you will solve with it, and whether it will be beneficial.

The grade system helps:

• optimize and unify the remuneration system;
• evaluate each employee's contribution and performance fairly;
• determine the importance of positions;
• form a personnel reserve;
• develop training programs;
• evaluate staff.

Organizations that provide for grading look more attractive in the eyes of applicants. Company management finds experienced workers more easily, fills vacant positions faster, and generally increases competitiveness. All this leads to the creation of a positive image, an influx of investors and partners.

Is it worth introducing grading methods: advantages and disadvantages of the system

Compare the advantages and disadvantages of grading, compare them with those of the current payroll system in the company. During the comparative analysis, you will understand whether it is worth introducing innovations or leaving everything as is.

To understand how grading methods work, develop a system for several positions. If the test results are positive, you can always enlarge it. Collaboration with external consultants will allow you to reduce the time spent on building a model.

Methods and features of personnel grading

There are many grading methods, but the most commonly used method is the one created by Edward Hay in the 1940s. Some companies develop unique systems, for example, Mercer, Watson Wyatt, PricewaterhouseCoopers. How the grades are built in them, what assessment methods are used - a secret that has been partially revealed. Experts from the HR Director magazine will tell you

In the classical model, the number of grades is 32, but with an individual system, their number can be significantly reduced. Consulting companies are adapting Hay's method. They take into account the organizational structure, financial capabilities, and other factors. If you don't want to spend money on developing a system, create it yourself, following the basic rules.

Principles of correct grading

1. Involve experienced department heads in grading. If you start developing a system without their support, it may become ineffective and unreasonable.
2. Establish job evaluation criteria that are clear not only to you, but also to your employees.
3. Use multi-stage approval of grades - first from top to bottom, then in reverse order.
4. Link grading to compensation and incentive policies.
5. Review the system every three years and make adjustments. If major changes occur in the company's operations, conduct more frequent reviews.
6. Do not copy the system from other companies. What takes root and is widely used in one place can be harmful in another. This is due to the fact that financial capabilities differ, employees have different levels of education, experience, etc.

Stages of implementation of personnel grading

Stage 1. Study the methodology, prepare an expert group to form a system.

Stage 2. Rate positions using questionnaires, surveys, interviews, and the point-factor method. Experts from Sistema Personnel spoke in more detail about the assessment and its features.

Stage 3. Set job requirements. Additionally, use the qualification directory.

Stage 4. Divide the factors that influence salary into levels. If there are a lot of them, exclude some.

Stage 5. Approve salaries for positions taking into account grades - the more points an employee scores, the more he receives. Find out more about this from Irina Kiriy’s book “ Building a grading system »

Stage 6. Prepare documentation: orders, descriptions of grades.

Stage 7. Familiarize employees with the system. If they do not understand how funds are distributed, or they have questions, explain the nuances in detail.

1. When determining the salary amount consider the market value of the specialist, what value it represents for the company, as well as the wage fund. Experienced employees will always find another job if they are not satisfied with the salary at their current place.

1. Evaluating employees Don't lose sight of the factors that influence your salary. Be careful when calculating points and assigning grades. Collaboration with other leaders and activists of the organization helps to avoid mistakes or reduce their number.
2. Adequately evaluate employees, despite personal attitude towards them. Friendship or family ties should not affect the employee’s position in the system. If the team notices that you are dishonestly grouping specialists in order to inflate the salaries of individual personnel, your authority will be lost.
3. Try do not use complex grading systems. Their use is most often unjustified from a financial point of view. If you want to implement the classic methodology, instead of 32 grades, leave 10-20, excluding the unimportant ones.
4. Additionally stimulate staff, increase engagement with bonuses, corporate events, and other bonuses. Remember, the more employees earn, the higher their quality of life. They don’t have to think about where to earn extra money, so they can devote themselves entirely to fulfilling their job responsibilities.

Question about employee motivation existed from the very beginning of the development of capitalist relations. And each time, academic economists, adapting to the requirements of society and the existing situation, found various methods of motivating staff.

In our country, long-outdated rules for calculating wages and bonuses apply everywhere. New positions and specialties have appeared, and the question of giving them decent pay arises very often.

In this regard, more and more attention is beginning to be removed new system, which is called grading.

Grading is a method of motivating staff, which is based on assessing the employee in terms of the value of his position for the enterprise. Based on the data obtained through analysis, wages are calculated, which takes into account many aspects, ranging from the strong-willed qualities of the employee himself to his direct contributions to the development of the company.

Grade system is the process of ranking all positions in terms of their importance to the company. In this way, not a vertical hierarchical structure is formed, but a horizontal one, in which a simple welder can receive a salary higher than his master. Within one position you can improve your qualifications, grow and get more pay.

Grade system– this is absolutely new approach, which has already appealed to many modern companies seeking to maintain a competitive position in the market.

Types of grading systems

Popular in our country three types of grading systems:

1. First level of difficulty. This is a fairly easy method based on determining several job ranks (from 5 to 10). Through a meeting, management distributes all existing positions in the company into groups and assigns a different salary level to each of them. The method is suitable for small companies with up to 100 employees.
2. The second level of complexity was developed by American scientists and adapted specifically for the CIS countries. To implement it, you need to evaluate and assign points for each position, and only then rank and set the salary level.
3. The third level of complexity is an incredibly deep and labor-intensive method, which can take several months to implement. But large companies cannot do without it.

The difference between grades and the tariff system

Many companies are slowly abandoning the use of the tariff system. In their opinion, these are outdated methods that do not evaluate either the professional skills of the employee or his value to the company as a whole. Thus, in the tariff system, wages will depend on knowledge, experience, and the tariff schedule adopted back in the days of the Soviet Union.

In order to make an objective gradation, it is necessary to develop a system of evaluating factors. The more there are, the better the indicators will be, but the more difficult it will be to carry out the analysis. The most popular criteria are most often used, including:

• the need to manage personnel;
• public relations;
• risks;
• responsibility;
• qualification level;
• quantity and complexity of work, etc.

In the tariff system, all positions are arranged in a vertical hierarchy: from worker to manager. This structure is based on a tariff schedule. And if a worker is entitled to one salary, taking into account various coefficients, then his immediate superior will have a higher salary only because he occupies the highest position. In the grading system everything is different.

The hierarchy is built horizontally. Thus, a labor protection specialist, a lawyer, or a personnel officer can be in the same grade and receive their own salary level. And a worker, due to his professionalism and personal qualities, can have a higher salary than an accountant who is higher up the ladder in the salary scale.

All positions in the grade system are assessed according to point scale, the higher the score, the more valuable the employee is to the company.

Which companies make sense to introduce grades?

First of all, large and medium-sized companies should turn to such a system. If a company has many employees, a complex structure and many departments, then grading will help to divide salaries equally. Among those who successfully use this approach are Gazprom, Rusal, Rosatom, RusHydro, Aeroflot and others.

Small companies with a small staff of up to 50 people should not choose this method, because the costs of its implementation may be greater than the expected expectations from its results.

The procedure for developing a grading system

The introduction of a new methodology at an enterprise is very labor-intensive process.

Before embarking on changes, you need to clearly analyze the situation in the team and set yourself specific task and goals.

But now let’s look more specifically at how ranking and grading of positions occurs.

Stage 1

Identifying Key Factors

In order to make an assessment, it is necessary to determine what criteria will be fundamental. There may be 5-6 , and maybe much more, it all depends on the size of the company. To keep things simple, let's look at an example with several criteria:

1. Is it necessary to manage subordinates, and in what quantity?
2. Does the position have responsibility for the financial results of the company?
3. To what extent can an employee make decisions independently?
4. Does the position require work experience?
5. What qualifications must an employee have to be able to occupy this position?
6. Are there external connections?

Stage 2

This step is intended to highlight sub-items for each factor:

Stage 3

Now each position needs to be assigned points. Since we have 6 letters in each category, we will give ratings from 1 to 6.

Job evaluations should be carried out as objectively as possible. Often companies hire outside consulting firms to solve this problem.

Stage 4

At this stage, we must evaluate each position by assigning point scores. Another important point is the value of each criterion for a given position. This point must be taken into account and added to the assessment. Points for it are given on a five-point scale

Let's start with chief accountant:

Overall score for this position - 91

Let's evaluate the work division director:

The overall score for this position is 155

All positions are assessed in the same way. As an example, we use the following data:

• cleaning lady – 10;
• working mechanic – 37;
• secretary – 65;
• master – 75;
• lawyer – 115;
• occupational safety engineer – 100;
• marketer - 70.

Stage 5

Based on the results obtained, you need to distribute grades. If the enterprise is large, they make a gradation about 10 groups. But this is not necessary. The approximate distribution is as follows:

• 1st grade – from 8 to 25 points;
• 2nd grade – from 26 to 40 points;
• 3rd grade – from 41 to 65 points;
• 4th grade – from 66 to 85 points;
• 5th grade – from 86 to 100 points;
• 6th grade – from 101 to 125 points;
• 7th grade – from 126 to 160 points;
• 8th grade – from 161 to 180 points;
• 9th grade – from 181 to 190 points;
• 10th grade – from 200 points and above.

Stage 6

Only after going through all the previous stages can we talk about salary formation procedure, which consists of two main parts.

First – stable, – calculated by summing the official salary and bonuses guaranteed by law.

Second part consists of various bonuses of a personal and general corporate nature.

Advantages and Disadvantages

The main advantages of grading include:

• Effective reward scheme.
• Improved organizational structure.
• Transparent salary system.
• Grading helps formulate a personnel development strategy.
• Reduces staff turnover.
• Promotes professional growth of employees.
• Thanks to grades, the phenomenon of employee burnout, when one person has been in the same position for many years and loses initiative and qualifications, disappears.
• The system helps determine the connection between an employee’s position and his value to the company, so the person understands his importance and works better.

However, there are significant disadvantages that cannot be ignored:

• First of all, this is the high level of costs for developing, implementing and maintaining the system.
• If the company does not have personnel who can conduct a qualified analysis, then it is necessary to attract experts from outside, and this is an additional expense.
• Sometimes it is very difficult to make an objective assessment of a position. After all, it is necessary to take into account not 5-6 factors, but sometimes several dozen.
• The system needs to be constantly changed and improved. If an employee moves from one position to another, located in a different grade, this will create new problems.

We invite you to watch a summary video on how to build an algorithm for a grading system.

Thus, the grading system, on the one hand, is modern and good way increasing staff motivation, and on the other hand, it is a labor-intensive and expensive method, the implementation of which requires spending a lot of resources.

The grading system originated in the USA in the 20th century. It was developed for government agencies. The purpose of creating such a system was to formulate wages for government workers of equal professional level, performing different tasks.

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The universal scheme takes into account many indicators that affect material compensation for any position.

In Russia, this system was first used in 1984 by DHL. They had a 4-rate labor compensation system. Then it was installed at Wimm-Bill-Dann, IBS and Rolf. An analogue of the grade system functioned in the Soviet Union. We are talking about the Tariff Qualification Grid. However, it was applied only to certain categories of positions. In addition, she analyzed the workers formally.

What is it?

Personnel grading is the process of evaluating positions in a company according to certain criteria.

Examples of such assessment factors include the following:

• presence of managerial functions, number of subordinates;
• the degree of participation in the company's profits;
• independence in decision making;
• experience;
• the cost of such an employee's mistake.

This is just an approximate list that is approved at each enterprise that has adopted such a system.

The grades are similar to the categories in the tariff system. Positions are arranged in a hierarchical chain. It is formed based on the employee’s value to the business. Each grade receives a salary range and its own social package.

Thanks to grading, a number of problems can be eliminated, including linking the size of the worker with his contribution to the development of the enterprise.

When is it required?

Large or medium-sized companies should first of all think about establishing this remuneration model.

This is due to the fact that it provides an opportunity to build a career not only vertically, but also horizontally (within your current position). For example, the employee’s qualifications will be improved, which will affect his salary. The same applies to cases where the worker has undergone training. While it remains at the current level, the weight of the knowledge factor increases, which means that wages also increase.

Always works in large companies large number employees, which makes it difficult to assess their contribution to the common cause. Previously, it was necessary to resort to formal naming of positions in order to place them in the hierarchical chain and determine fair pay.

This problem can be eliminated by a grading system.

Why is it used?

Why is grading used? Why do companies implement this system?

There are several reasons for this:

• Enterprise crisis. It becomes difficult for a company to predict future earnings because the amplitude of their fluctuations has increased. Because of this, it is necessary to activate forces aimed at overcoming the crisis, which is associated with additional costs. In such a situation, there is no need to resort to reducing wages, but only to distribute expenses among employees more rationally. This can be done with a grading system.
• Commitment to equality of opportunity. Here it is important to correctly evaluate the contribution of employees who work in different directions. You can involve the employees themselves to determine the percentage contribution of their area of ​​activity.
• Commitment to transparency and visibility. Employees must understand the system for determining their salaries. If it is clear to them, as well as the criteria for increasing wages, then this will have a positive effect on staff motivation. The income received must be equal to the contribution made.
• To create clear rules, which will allow the employee to assess the prospects for growth in the company and the possibilities for his professional development.

Personnel grading and its features

The grading system is designed to evaluate jobs in terms of their contribution to achieving the final result.

It should be borne in mind that jobs are assessed, and not the activities of a specific employee.

Grading methods are quite diverse and will vary greatly both in the accuracy of the analysis and in the duration of the process itself.

Many people identify it with the tariff system. However, this is not true.

The table shows the differences between these systems.

Techniques

The classic technique was created by Edward Hay in the 40s of the 20th century. There are other grading methods currently in use. Including those created by Mercer, Watson Wyatt and PricewaterhouseCoopers.

According to the classical method, the number of grades can be equal to 32; methods developed later allow a smaller number.

The creation of the system is usually entrusted to consulting firms. Some organizations form it without involving third-party companies.

Each indicator is assigned several levels. They divide positions by grade.

Rules of application

Principles of correct application of the grading system:

• involving the company's managers in creating the grading (otherwise the system will not work, since it seems that it is imposed);
• clear criteria for analyzing positions that are clear to all managers of the company and applicable in this company;
• “cascade” coordination of the grade system: from line managers to top managers (first “top-down” and then “bottom-up”);
• the grading system is in a modern way motivation of personnel and therefore should overlap with motivational and compensation policies;
• Regular updating of the system, which will allow it to remain relevant in new conditions. The accepted grading must be reviewed every 3 years.

Implementation stages

Implementing a system in a company involves going through several stages:

• preparing a group to form a system, studying the methodology;
• creation of documentation;
• assessment of positions through surveys, questionnaires, interviews;
• identifying the requirements that employees in certain positions must meet;
• division of factors into levels and their assessment;
• counting the number of ratings for a position;
• calculation of grades by grade;
• approval of salaries and wages;
• consolidation of the schedule in the form of a document and analysis of the results.

Results and their interpretation

After the initial information has been received - information on factors, etc. - it is necessary to form grades.

Positions are arranged hierarchically depending on the points scored. Then they are combined into grades.

The main task is to determine the range of scores at each level.

When approving wages, you should rely on two indicators:

• the average market “cost” of such a professional;
• its value to the enterprise.

Performance assessment

Grading allows you to achieve the expected results in building a competent system of remuneration for employees.

With its help, resources in the enterprise are distributed fairly. This allows us to solve a number of problems, including those related to staff motivation.

Employees should be aware that salary increases are determined by completely understandable factors and categories.

Examples

This system successfully operates in various companies, for example, in Uralkali-Remont LLC. During the implementation of this system, the following structure of this process was developed.

Then an assessment of positions and professions was carried out. A sheet was used to record the results.

All employees of the enterprise were divided into 3 groups, and these categories and factors were assessed.

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

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 will the grade of employees (lawyers, managers, etc.) 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:

The grading system is a type material motivation personnel, which is based on assessing the relative value of a position in the enterprise and creating a hierarchy of positions with corresponding salaries. A fair, transparent, adequate to expectations, competitive, reasonable remuneration system is one of the main factors working to retain employees in the enterprise. The absence of such a system leads to employee dissatisfaction, decreased motivation and productivity, and staff turnover.

The introduction of grades is an internal project of the enterprise; it represents a convenient tool for regulating the wage fund and creates the basis for the introduction of various management mechanisms for personnel motivation and development.

The problem of the economic interest of workers in remuneration and improving the final results of the enterprise has always been and remains relevant. A person’s readiness and desire to do their job efficiently is a key factor in the success of an enterprise. To assess a position in the overall structure of the organization, a special procedure for grading positions is carried out. During the assessment, the following expectations of the enterprise are highlighted:

firstly, based on the results of the assessment, you can get an accurate understanding of what kind of people work in the organization and determine their level of knowledge and skills. The success of an organization depends on the quality of personnel no less, if not more, than on other factors - such as the volume of financial investments, cost real estate, structure of warehouse stocks, etc.;

secondly, thanks to assessment, you can intelligently place people in places specific to them in order to achieve the best results.

Based on the assessment, the shortest and most effective ways to change the situation in the direction desired for the enterprise are selected. Particular attention is paid to regular staff assessment, since this is the only way to monitor ongoing changes. If you do not systematically evaluate the internal environment, personnel, situations, there is a risk of missing important trends, not seeing in time that the company’s actions are not effective, and missing the moment for change. Personnel assessment also allows us to identify deeper and systemic problems in the organization.

Comprehensive personnel assessment is currently recognized by domestic scientists as a way to obtain economic (achieving high economic indicators) and social (coordination and implementation of the interests of the subjects and objects of assessment) effect.

When considering the issue of personnel assessment, it is important to note that there are many aspects to consider, but in this case we consider it appropriate to consider the issue of job assessment and the essence of grading as an effective way to manage personnel work.

Over a long period of time, workers' salaries various industries in our country was determined on the basis of centrally approved tariff schedules or industry salary schemes. Currently, in many enterprises, the problems of developing a fair and effective remuneration system have become particularly relevant in connection with the introduction of new positions not specified in regulatory documents, especially various specialists. Often the success and competitiveness of an enterprise depends on their activities, but this category of personnel cannot lay claim to leading positions in the tariff hierarchy.

In connection with the reorganization of business, the formation of corporations and holdings consisting of several companies, the task of pursuing a unified corporate policy in the field of labor incentives, which is solved by a grading system that allows making wages uniform, transparent and fair, is becoming increasingly urgent.

The grade system is the best and only justified remuneration system based on the point-factor method and matrix-mathematical models. The author of this technique is the American scientist Edward Hay. Over time, Hay’s methodology has varied several times, acquired many additions and imitations, but its essence has remained unchanged: grades are necessary, first of all, as a tool for streamlining employee base salaries. A grade is a group of positions of similar importance with a similar salary range, which allows you to compare the internal significance of a position within a company with the value of a specific position on the market and determine the conditions for material motivation of employees. This understanding of grade is most suitable for organizations developing and implementing a remuneration system based on grades.

The grade system is a grouping of positions on certain grounds in order to standardize wages in the company. The process of grouping positions itself is called grading - this is the positioning of positions, that is, their distribution in the hierarchical structure of the organization into groups (grades) in accordance with the value of a given position for the company.

You can grade positions or jobs when positions are distributed according to grades, regardless of which employee occupies the position. It is possible to subject the employees themselves to the grading process, when employees are assessed and assigned to grades individually.

Grading is not an analogue of the tariff system, despite some similarities. The tariff scale and grades represent a hierarchical structure of positions, where salaries are arranged on an increasing basis. The significant differences between these systems are shown in Table 1.

Table 1. Differences between the tariff system and grades

When using a grading system in an organization, positions will be distributed in such a way that after managers, first there is a grade of positions that earn and make a profit, and only then a grade of employees (lawyers, managers, etc.) will be placed.

As practice shows, in modern market conditions the optimal ratio of the constant 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. The variable part will establish the 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 the department or the entire company).

The salary structure before the introduction of the grade system is shown in Fig. 1. The salary structure after the introduction of the grade system is presented in Fig. 2.

Figure 1. Salary structure before the introduction of the grade system

Figure 2. Salary structure after the introduction of the grade system

Based on grading, a compensation and benefits policy is built, which allows optimizing personnel costs by improving the organizational structure and staffing table, more efficient planning of personnel costs, etc.

There are certain prerequisites for grading within an enterprise. Problems related to the management and remuneration of personnel at Uralkali - Repair LLC:

• fragmentation of company divisions in remuneration;
• the principle of distribution of the wage fund is not transparent;
• labor assessment based on the subjective opinion of the manager;
• professional skills, business qualities, and work experience are not always taken into account when translating;
• groups of positions of the same category, but in different departments sometimes differ significantly in the complexity of the work performed;
• there is no relationship between the level of income and the complexity of the work performed;
• there is no understanding of what results need to be achieved in order to receive greater rewards for work.

The identified problems make it difficult to manage and control the enterprise’s personnel and prevent them from achieving their goals. If several of these shortcomings are noted, then it is advisable to begin developing a grading system.

Limited Liability Company "Uralkali - Repair" (hereinafter referred to as "UKRM LLC") was created on the basis of the repair divisions of the Open Joint Stock Company"Uralkali". The area of ​​responsibility of UKRM LLC is the repair of mechanical equipment of the surface complex and the repair of all equipment of the underground complex in Berezniki and Solikamsk. The company includes the following production divisions:

• Repair and mechanical control;
• Department for repair of electromechanical equipment of the surface complex, which includes centralized repair shops;
• Department for repair of electromechanical equipment of the underground complex, which includes underground repair services;
• Department of mining and installation works, consisting of a production and technical department and mining workshops.

In order to ensure uniform principles for organizing remuneration and standardization of labor for employees of the enterprise's divisions, a regulation on remuneration and standardization of labor for employees of UKRM LLC was developed. The main components of remuneration according to the regulation are:

• regulatory documents: labor cost standards, instructions on the workplace and labor protection, job descriptions, regulations on departments, etc.;
• a tariff system that determines the differentiation of pay depending on the complexity of the work, the qualifications of the employee, and working conditions in the workplace;
• a bonus system that links wages to the performance of the Company, its divisions, as well as the degree of personal contribution of the employee;
• additional payments and bonuses of an incentive nature, linking the amount of remuneration of an employee with personal business qualities;
• additional payments and allowances of a compensatory nature, guaranteeing the employee payment in the amounts provided for by law;
• one-time bonuses and remunerations applied for the purpose of material interest of the employee.

To fulfill production tasks, UKRM LLC has the following remuneration systems:

• time-based - bonus and salary - bonus wages;
• piecework - bonus wages and individual wages.

Employees' wages consist of two parts: constant and variable. The permanent part includes wages calculated on the basis of the base salary, bonuses and additional payments paid under the law. The variable part consists of various bonuses for the quality of work and the effectiveness of individual indicators, bonuses based on the results of the department’s work, bonuses for personal participation in projects.

The grading system is convenient for large and medium-sized companies, because, unlike vertical career building, it allows you to build a career horizontally, for example, increasing workers' qualifications will affect the level of payment, since the weight of the knowledge factor will increase, and the salary will increase, although the employee will remain in his position .

Grading has the following goals:

• reduction of personnel costs, optimization of payroll;
• a transparent and understandable relationship between the employee’s income level and the value of the position for the company among all positions;
• easy determination of pay levels for new positions;
• the employee has an idea of ​​possible changes in his income under various career development options;
• increases the level of staff motivation and promotes their retention;
• increases manageability, as each employee begins to understand that his income directly depends on the evaluation of his position;
• increases the company's transparency for investors.

Achieving these goals forms an effective system of management, motivation and remuneration of personnel at the enterprise.

Grading principles: economic feasibility, clarity and transparency, fairness, homogeneity.

The grading process diagram includes the following steps

1. Job descriptions. Positions are described through job analysis methods such as interviewing, questioning, and observation. Based on the results of the job analysis, a description of positions is carried out, which may contain the following data:

• general information (job title, date of compilation of the description, name of the structural unit; name of the manager, etc.);
• standards of performance of duties and working conditions;
• personal qualities, character traits, skills and level of education and more.

2. Determining the value of positions. To do this, in practice, two types of procedures for determining the value of a position are used, shown in Table 2.

Table 2. Comparison of methods for determining the value of positions

3. Construction of grades. Depending on the number of points scored (using the factor-score method) or established ranks (using non-analytical methods), positions can be arranged hierarchically. After this, they need to be combined into grades. A grade is a range of points or ranks of positions in which they are considered to be of equal value and value to the company and have the same pay range.

Grades are formed in a variety of ways. When using non-analytical methods, grades are formed based on the ranks established for positions. The ranks are divided into ranges based on the subjective understanding of managers and specialists and acceptable for a particular company. When using the factor-score method, the main task that must be solved to combine positions into grades is to determine the ranges of points in each grade.

At this stage, it is important to determine the boundaries of the grades, so approximately equal steps are taken to mark the boundaries between grades. For convenience, larger categories of personnel are also being introduced, including several grades. For example, employees (occupying grades 10 to 6), highly qualified employees (grade 7-9), managers (grade 3-5), top managers (grade 1-2).

4. Establishment of interqualification ratios (official salaries) for each grade. When establishing a salary range for each grade, enterprises are guided by market (external) salary values ​​and internal factors (the value of the relevant positions, the financial capabilities of the company, etc.). A variety of approaches are used:

• the lower value of the official salary should be at the level of the market average, the upper value should exceed it, for example by 30%;
• The average official salary should be at the level of the market average, the maximum should exceed it by 15-30%, and the minimum should be below the average by 15-30%.

Ranges can be formed in two ways:

1. establish a range of official salaries for each grade;
2. determine intervals of interqualification ratios (coefficients).

These coefficients show how many times the official salaries of the corresponding grade are greater than the minimum wage established at the enterprise. The established 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. An example of constructing coefficients of interqualification relationships is discussed in Table 3.

Table 3. Example of constructing interqualification relationships

The final procedure of this stage is a comparison of the actual official salaries of the company’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.

5. Introduction of a grading system. At this stage, it is important to inform the company’s employees about changes in official salaries. The implementation of the grading system is carried out according to the Deming cycle, which includes planning, testing, making adjustments and implementation.

The result of grading should be a rating of positions at the enterprise, which can be used to streamline base salaries, distribute social packages, draw up personnel development plans, and more. The rating can be presented in a standard format that describes all positions within the enterprise. The format should include: the name of the position, its linear affiliation, indicators on work evaluation scales, an integral indicator of the value of the work, grade number, requirements for standards of labor conduct, salary range, possible benefits.

The Department of Labor Organization and Wages (hereinafter referred to as UOTiZ) is a structural division of UKRM LLC. The following are directly subordinate to the head of OSH: the department of labor organization and wages (hereinafter - OLOiZ) ​​and the department of labor standardization (hereinafter - ONT). The OTP is assigned the following tasks:

1. improving the organization and regulation of labor in the company’s structural divisions;
2. organizing payment and incentives for workers;
3. accounting for the use of working time.

Thus, OSH has all the necessary powers and has sufficient information to develop and implement a grade-based remuneration system at UKRM LLC. The entire process for this work was divided into stages:

1. Preparatory;
2. Conducting assessments of positions and professions;
3. Determination of grades of positions and professions based on assessments;
4. Establishing tariff rates for each grade of workers and salary ranges for grades of specialists and managers;
5. formalization of the grading system at the enterprise.

The main feature in the development of the grading system for UKRM LLC was the establishment of occupational grades separately for each structural unit of the enterprise. This is due to their fragmentation geographically, in terms of work performed and services provided. For each stage, the following scope of work is allocated, indicating the period for their implementation, shown in Table 4.

Table 4. Structure of the grading process at UKRM LLC

Preparatory stage. The transition to a new wage system leads to changes in the wage fund, its size and structure. OOTiZ determined that the transition to a new wage system will lead to an increase in the wage fund by an average of 8 to 15 percent. Afterwards, a list of all positions and professions is compiled based on the current staffing table of UKRM LLC. This type of personnel such as top managers are included in the grade system; for the category of specialists, the difference in remuneration will be taken into account when setting the salary within the range of the grade. As for the ranks of workers, the occupational grade will be established taking into account the rank in a given profession.

Conducting job descriptions and professions. All necessary information taken from the regulations on departments, departments and divisions, as well as job descriptions of enterprise employees. For each position and profession, the following information is collected:

• general information (job title, date of compilation of the description, name of the structural unit; name of the manager, etc.);
• duties, responsibilities and powers;
• relationships with other employees and external organizations;
• standards of performance of duties and working conditions.

Conducting assessments of job positions and professions. Positions are assessed using an approach based on the content of the position, i.e. positions are evaluated based on their value to the enterprise. To assess the position of UOTiZ, I chose from many factors the most significant for UKRM LLC:

• The cost of error;
• Working conditions;
• The need to search for non-standard approaches;
• Number of subordinates.

OSH specialists carry out a preliminary assessment of the company’s positions and professions in the following order:

1. Positions are assessed on a scale, i.e. The position assessment sheet is filled out in columns; a sample sheet is presented in accordance with Table 5.

Table 5. Position evaluation sheet

2. Each position is assessed in accordance with the described level for each of the factors. All employees of UKRM LLC are divided into three categories - managers, specialists and workers. The relationship between the category of personnel and the factors related to it is shown in Table 6.

Table 6. Position rating scale

3. The assessed position is compared with already assessed positions on the factor under consideration;

4. A sheet with preliminary assessments of positions is transferred to the head of the department for expert assessment;

5. The position assessment sheet with the expert assessment of the head of the department is transferred to the position assessment committee (hereinafter referred to as the COP). The KOP includes chief specialists and heads of departments in all areas of activity.

The assessment is carried out without the participation of employees occupying these positions. In order to ensure greater accuracy in assessing positions, OSH and KOP specialists have the right to invite experts. When assessing the positions of middle managers, the expert is the head of the department. When assessing the positions of line managers, specialists, workers, the expert is the head of the unit or the employee to whom the head of the unit has delegated his authority (head of department, head of the workshop).

Determining job grades and professions based on position assessments includes a number of steps:

1. Each assessment factor is assigned a weight that determines its importance relative to other factors in accordance with Table 7.

Table 7. Weights of position evaluation factors

2. For each position, a grade score is determined as the sum of scores for factors, taking into account the weighting coefficient of each factor. The range of grade point values ​​is determined in accordance with Table 8.

Table 8. Table of correspondence of the grade score to the grade of position and profession

3. Determination of grade for different categories of workers. The job grade of managers and specialists is determined in accordance with formula 1:

GradeRiS = ∑(position rating on a scale 1* weight 1+ position rating on a scale 2* weight 2 + ... + position rating on a scale N*weight N) (1)

The grade of workers' positions is determined in accordance with the formula:

GradeRAB = ∑(profession rating on a scale 1 * weight 1 + profession rating on a scale 2 * weight 2 + … + profession rating on a scale N * weight N) + rank (2)

Establishing tariff rates for workers and salary ranges for managers and specialists depending on the grade they occupy. Hourly wage rates for workers were determined depending on the length of the working week. The level of payment for managers, specialists and employees depends on the level of their competence. Differentiation of remuneration for employees within the salary bracket of a grade is carried out in accordance with the procedure for establishing salaries:

1. three levels within the salary scale for specialists and employees;
2. five steps within the salary range from grades 4 to 15 for managers (line managers and middle managers);
3. nine steps within the salary range from grade 16 for managers (top managers and middle managers).

Newly hired employees are assigned the first (minimum) salary level within the salary range of the corresponding grade. In case of permanent (temporary) transfer to another position, the employee is set the first (minimum) salary level within the salary range of the grade for the new position. When transferred within a department to a new position due to career growth, the employee is given a salary of a new grade one step higher than the current salary.

Employees of the personnel movement and development department must make appropriate salary changes to the employee’s employment contract in the form of an agreement to the employment contract.

The procedure for reviewing salaries within the salary range of a grade is carried out, as a rule, no more than once a year. The head of the department creates a list of department employees recommended for a salary increase. When selecting candidates for a salary increase, the manager must follow criteria such as: sustainable production results, achieving maximum efficiency, a high level of production and labor discipline, increasing the volume of work performed, in addition to those specified in the job description, the employee’s experience and length of service in the position.

Formalization of the grading system at the enterprise. The introduction of a grading system entails changes in personnel documents. In this case, there is a change in organizational working conditions. The employer is obliged to notify the employee in writing no later than two months in advance of a change in salary or tariff rate.

In addition to the organizational formalities of the grading system in the organization’s documents, it is necessary to introduce the system into the consciousness of the staff, show all its advantages and teach department heads to work in this system. The introduction of a grading system at UKRM LLC should occur through the creation of a new remuneration system in the company, which should include:

• order to introduce a grading system;
• regulations on the payment system and standardization of labor for workers based on grades;
• the procedure for introducing a new position into the staffing table;
• procedure for evaluating/revaluing positions;
• measures to update the grading system.

Practice shows that a grade-based remuneration system has the following advantages:

1. helps manage the wage fund and makes the payroll system flexible;
2. allows you to quickly analyze the structure of the wage fund, official salaries and track their dynamics;
3. a convenient tool for determining the base salary of a new position;
4. allows you to track levels and departments where there are discrepancies in salary calculations;
5. solves the problem of charging additional payments for work performed to standards that are below or above official standards;
6. allows you to determine how much a position at any level costs a company;
7. is an effective way to integrate different-sized divisions of a company into a single structure;
8. optimizes the allocation of labor resources.

The grading system increases the transparency of career prospects for employees and helps attract the attention of potential candidates in the labor market. There are two options for how a worker can increase his tariff:

• due to a change in qualifications, when improving your qualifications and receiving a higher rank or changing your profession to a more significant one for a company with a grade higher than the previous one;
• by changing working conditions when they become more dangerous.

For specialists, there are also options to increase their salary:

• due to a change in grade, when moving to another position that belongs to a higher grade, involves more complex work or with harmful conditions;
• by increasing the level within the grade, if the specialist has no disciplinary sanctions and has worked for at least 3 years.

Thus, employees confirm their grade with their results, it becomes possible to have a flexible approach to job evaluation in accordance with the importance of the workplace for the company, and the composition of the team is stabilized.

The organization does not stand still, it develops, and previously established priorities can be changed. These changes should be reflected in the composition and number of labor assessment factors.

To keep the developed grade-based remuneration system up to date, a regular “upgrade” of the system is required. To begin with, determine the frequency of monitoring; usually the adequacy of the system is checked once a year: on the one hand, this allows important changes both within the company and in the labor market not to get out of control, on the other hand, such a frequency will not allow it to be changed beyond recognition .

Adjustments can be either soft or hard. Soft changes in the grading system include changes in the weights of compensated factors. For example, previously it was important to focus on such a factor as “labor content,” but after a certain unification of activities, the emphasis may shift, for example, to “work experience.” Hard methods of adjusting the system usually include changing the quantity or content of the factors themselves, or the scale of severity of an individual factor. In this case, it is necessary to re-evaluate all positions and professions based on new factors. This is almost a complete overhaul of the system.

Situations arise when there is no need to revise the grading model as a whole. For example: it is necessary to review the classification of a separate position or determine the place of a new position in the system. In this case, a procedure for adjusting grades and situations that can be considered a signal about the need to make changes to the grade system are determined. As a rule, the following events lead to adjustments to the model:

1. The emergence of a new position, which must undergo the same assessment procedure as all positions and professions in the company and is assigned to one grade or another.
2. Changes in the market value of individual specialists - which is associated with the opening of new competing companies in the region or massive layoffs of personnel, excess or shortage of university graduates, etc. It is better to do this by introducing bonuses, transferring employees to contracts, or revising the salary portion.
3. Changing the content or composition of work for a position or profession.

You should keep a log of adjustments or record all deviations from the accepted methodology for constructing grades, using Table 9 as an example.

Table 9. Example of the “Adjustments Journal” form

A well-built grading system has a long lifespan, but, as practice shows, it requires a complete revision every 2-3 years.

For UKR LLC, the introduction of a grade-based remuneration system will allow:

• optimize the wage fund and make this group of costs manageable;
• streamline wages and eliminate disparity in the distribution of the wage fund between departments;
• make a simple determination of the level of payment for new positions;
• increase the level of staff motivation and promote its retention;
• increase the transparency of career prospects for employees, which helps attract the attention of potential candidates in the labor market;
• tie a system of bonuses and distribution of social benefits among employees;
• take into account the complexity and working conditions when setting the salary or tariff rate for employees.

Just as any project contains risks, the process of developing and implementing a grading system in an organization carries the following risks for which management must be prepared: it requires high costs for development and implementation; the system needs to be constantly kept up to date; there is a danger of a subjective approach when developing and assessing grades; difficulty in adapting to the new remuneration system on the part of staff

Literature

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3. Career. Personnel management. Salary distribution: grading [electronic resource]. URL: http://strana-sovetov.com (date accessed 06/17/2013)
4. Volkov V.P., Ilyin A.I. Enterprise economics: Tutorial M.: New knowledge, 2007.
5. Encyclopedia of a manager. Category Management. Prerequisites for grading and stages of its implementation [electronic resource]. URL: http://www.e-xecutive.ru. (date of access: 06/17/2013)
6. Labor Code Russian Federation: Federal Law of December 30, 2001 No. 197 - Federal Law (as amended on July 28, 2012). [electronic resource]. Access from the reference legal system "ConsultantPlus".
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, Yazeva M.A.

Grading system as a tool of the “Uralkali - Repair” personnel labor management

In the article the authors on the basis of an analysis of documents and statistical data to assess the effectiveness of the application of the system of grading, its impact on the health of staff.

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