Grading is the essence of purpose and opportunity. Grade system: what it is and how it works. What to Expect by Implementing Planning and Management with Grades

The grades are similar to the bit rate of labor, which was actively used in the USSR. Read about the features of the grade system, the pros and cons, as well as the implementation method in the article.

What is a graded wage system

The system of grades in wages was developed in the 20th century for government agencies. Over the years, it has remained practically unchanged, if we do not take into account the mixed and modified grading options. In fact, the system is designed to calculate staff salaries, taking into account qualifications and job functions. In this approach, various factors are taken into account, which are assigned weight: the presence of subordinates, experience, mistakes, managerial functions, and much more.

Important! It is irrational to introduce a grading system in small companies due to the large time spent on its development, the laboriousness of the process - it is suitable only for large and medium-sized organizations with more than a dozen people on the staff

When switching to a grading system, there is no need to rename positions in order to charge different salaries to the same group of employees. Positions are lined up in a hierarchical chain, and for each of them an individual pay fork, social package, and other bonuses are selected. The employee begins to receive as much as he deserves, taking into account labor costs, physical and other capabilities.

How the grading system works: an example

In the Omega organization, accountant Oksana has 10 subordinates, prepares monthly reports, calculates wages, maintains current documentation, etc. The weight of all factors together reaches 100 points. Her colleague Svetlana does the same job, but does not manage employees (-15 points). She gets only 85 points, so she gets less than Oksana.

The grading system is not always perceived positively by employees, as many of them do not understand why colleagues receive more than they do. Against this background, disputes, misunderstandings arise, which can lead to an increase in staff turnover, proceedings. To avoid this, be careful about grading.

Please note that you have the right to assess only the experience, qualifications, and other business and professional qualities of employees. According to Art. 132 of the Labor Code, the establishment of individual salaries for the same positions based on these parameters is permissible. Linking grades to age, gender, race, etc. is regarded as discrimination.

What the grading system gives

Grading allows you to unify and optimize the remuneration system. With the right scoring approach, an organization can save money by cutting salaries for inefficient employees or those doing lighter jobs. The system allows you to more accurately assess the contribution of each employee, respectively, to select more effective ways of motivation.

With the help of grades, the importance of the position is determined, based on the number of functions assigned to a particular employee. After establishing the criteria and the assessment itself, you can immediately see which employees' responsibilities can be redistributed among other subordinates, which position can be reduced.

If there are no plans to reduce the number of staff units, “weak” workers can be sent to training by choosing the most suitable program. For example, if an employee demonstrates gaps in the area of ​​"management skills", they are developed through training. Improvement of education, qualification of personnel makes the company stronger and more stable. Over time, it takes a leading position and maintains them even in times of crisis.

Organizations that use the grading system look more attractive in the eyes of job seekers for a vacant position, so it is easier for management to find strong specialists who are able to fully cope with their duties. In addition, experienced HR-s use the system as a personnel management tool - they create healthy competition among employed people, and professionals who stand out professionally are included in the talent pool for subsequent movement to higher positions. Thus, it is possible to save money in the selection of middle and top-level employees, increase motivation and retain valuable personnel.

Advantages and disadvantages

The pros and cons depend on the correct design of the system, the presence of errors and shortcomings. Before introducing grading, think about how the organization will benefit, what material costs it will incur. The main advantages and disadvantages can be highlighted.

Disadvantages of the system	Benefits of grading
the complexity of evaluating individual posts; the need to involve outside experts; time costs; the need to prepare documents; conflicts on the background of salary fixing; litigation initiated by disgruntled employees.	reduction of wage costs, rational distribution of funds; optimization of labor resources; flexibility in the salary setting system; assessment of the contribution and competencies of employees; transparency and comprehensibility of the system; employees' interest in development.

When in doubt about whether to introduce grading or not, do an experiment. Create a simplified system for several positions, evaluate employees, financial and other benefits. If so, attract experts and scale the system.

How to develop and implement

Almost all grading methods are based on the original system created by Edward Hay. It provides 32 grades, but in the process of adaptation, many experts reduce their number. They take into account the number of people in the company, organizational structure, financial capabilities and other factors, and on the basis of the information collected, they determine the optimal number of grades.

Important! If you are developing the system yourself, use no more than 10-20 grades, otherwise it will be difficult for you to avoid mistakes that can lead to serious material losses.

Stages of Grading System Implementation

Step # 1. Create an expert group to form the grading system or involve experts in its development who will take over this work.

Step # 2. List positions based on staffing tables.

Step # 3. Conduct an in-depth assessment of positions using questionnaires, interviews, point-factor method. Your goal is to identify the key responsibilities without which it is impossible to develop a grading system.

Step # 4. Describe the job requirements. Additionally, use the qualification handbook. Divide the factors affecting wages by levels.

Step # 5. Agree on the established requirements for the positions with the immediate supervisors of the employees. If necessary, make adjustments to the design of the grading system.

Step 6. Approve the salary forks - the more points, the higher the rate. When job duties change, the employee moves to another level, respectively, his salary changes.

Step 7. Prepare accompanying documentation: orders, description of grades.

Important! If you do not describe the grades in local acts, do not familiarize employees with them, but only informally assess the personnel, such a distribution of salaries may be considered illegal, and you will be charged a fine.

Step 8. Familiarize the staff with the system, answer all questions. Emphasize that salaries will change as skills increase and responsibilities expand. After that, evaluate the employees, record the results and set an individual salary.

Step 9. Assess the graded pay system. Compare the material costs of labor remuneration "before" and "after" its implementation. Do this work together with financiers. If the full-time specialists are overly busy, hire freelance accountants, for example, experts from the Chief Accountant Assistant.

Step 10. Observe the employees, the level of motivation, loyalty. If staff turnover has increased, as the salaries of some specialists have decreased, improve the system.

How to avoid problems

Regardless of who is generally involved in the development of the system, involve employees of the company who are trusted by the team. Conduct multistage approval of grades, tariffs and other nuances "top-down" and "bottom-up". That is, you must take into account not only the opinions of managers, but also employees.

Establish only clear assessment criteria - avoid vague wording, unreasonable requirements. Reconsider the factors affecting the size of the salary every few years, make adjustments to the tariff scale. Consider the market value of employees, inflation rates, salaries at competing firms.

Link grading with motivational and compensation policies. Additionally, stimulate your staff with bonuses that are not included in the grading system. The main thing is that they are honestly distributed among subordinates. Record what employees need to achieve in order to receive additional bonuses. This will increase the efficiency of your work, which will have a positive effect on the well-being of the organization.

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Today, the grading 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, she is often jokingly called "Hey's salary meter."

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

First, let's define which is which. Grading(from the English. grading) - classification, sorting, ordering. Grading is the positioning of positions, that is, their distribution in the hierarchical structure of the enterprise in accordance with the value of this 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 in accordance with its goals, but just enough so that the employee does not leave, and the latter, in turn, seeks to receive as much as possible. It is the grading system that allows you to "link" wages and the logic of the business, as well as to untie the knot of problems related to staff motivation.

Types of grading systems that are usually implemented

To date, the following grading systems and their modifications are being introduced into practice, depending on the degree of complexity.

The first degree of difficulty- a system of ranking positions by degrees of complexity. It does not require mathematical calculations and can be implemented by the top managers of the company after their preliminary preparation. It has nothing to do with the original version of the grading system. But some consultants are massively implementing it at Russian and Ukrainian small and medium-sized businesses.

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

Third and fourth degree of difficulty- these are real original grading systems, which, despite their copywriting security, 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, step, on matrices, profile-guiding tables, graphs and, most importantly, on accurate and consistent adherence to the stages of the methodology.

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

The introduction of this remuneration system makes the company 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 and 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 of the position on the company as a whole and the type of influence on the final result.

What is the difference between the tariff system and grades?

Many pay professionals may get the impression that grading is analogous to a rate system. Undoubtedly, there are similarities. After all, both the wage scale and grades represent a hierarchical structure of positions, where salaries are built on an increasing basis. But there are also significant differences ( tab. 1).

Table 1. Differences between the tariff system and grades

Tariff systems	Grade systems
1. Constructed on the basis of an assessment of professional knowledge, skills and work experience	1. Provides for a wider range of criteria, including such indicators for assessing the position as: - management; - communications; - a responsibility; - the complexity of the work; - independence; - cost of error and others
2. Positions are lined up on an accrual basis	2. Grading allows for the intersection of parts of two adjacent grades. As a result of this, a worker or foreman of a lower grade, due to his professionalism, may have a higher official salary than, for example, a labor protection specialist who is in a nearby rank of the highest order.
3. The hierarchical structure of the wage scale is based on the minimum wage multiplied by coefficients (inter-grade, inter-sector, inter-job 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 increase in the vertical (from worker to manager)	4. Posts are placed only on the basis of importance to the company

So, for example, in an enterprise that is engaged in intellectual development, after the managers there will be a grade of IT personnel as the main earning and profitable one, and only then the grade of employees (lawyers, managers, etc.) will be placed.

For which businesses is the grading system suitable?

First of all, this system is convenient for large and medium-sized enterprises, since, in contrast to vertical career building, it allows you to build a career horizontally, within your level. For example, an increase in qualifications and education for workers will affect the level of pay, since the weight of the knowledge factor will increase, and the salary will increase, despite the fact that the employee will remain in his position. In addition, large enterprises have a large number of positions, which creates many problems. Therefore, in the previously used systems for determining official salaries, positions had to be formally named in order to somehow place them in the hierarchical vertical. The grading system solves this problem.

What stages will have to be overcome in order to implement the new system?

The introduction of the grading system at the enterprise takes place in several stages, namely:

1. Preparation of the working group, study of the methodology.
2. Development of documentation (concept, position and others).
3. Evaluation of positions (questionnaires, interviews, conversation).
4. Determination of requirements for positions, clarification of factors.
5. Distribution of factors by levels (ranking).
6. Assessment of each level.
7. Estimation of the factor weight.
8. Calculations of the number of points for each position.
9. Distribution of points by grade.
10. Establishing official salaries and calculating salary forks.
11. Playback of the graph and analysis of the results.

Since points 1–3 are preparatory, very voluminous stages in the 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 the 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 requirements for positions, clarification of factors

This is one of the most difficult steps, as it requires a selection of key factors for each position. These factors should not only be understood, but also distributed across difficulty levels. Here it is imperative to take into account the specifics of the enterprise, department, as well as the requirements for the position. For an illustrative example, we took a virtual company.

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

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

Often there is a need to divide factors into subfactors, which makes it possible to reveal more deeply and more variedly and, accordingly, more accurately assess the position.

For an illustrative example, let's take a virtual company with a total headcount of 16 people.

Our virtual company identified the following factors for job evaluation ( tab. 2):

• employee management;
• a responsibility;
• independence in work;
• work experience;
• contact level;
• the complexity of the job;
• cost of error.

Table 2. Key factors in job evaluation

Factor levels	Description of the level
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 task
	Coordination of activities of the working group (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
	Leadership of a group of subdivisions, mainly vertical power interactions
Factor 2. Responsibility
	Responsibility only for their work, there is no responsibility for the financial result of their activities
	Responsibility for the financial results of individual actions under the control of the immediate supervisor
	Responsibility for the financial results of regular actions within the framework of functional duties
	Elaboration of decisions affecting the financial result of the working group or department, coordination of decisions with the immediate supervisor
	Full responsibility for the financial results of the unit's work, for material values, organizational costs within the budget of the unit
	Full responsibility for the financial and other results of a whole line of work (group of departments)
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 supervision of the head, non-standard situations are solved by the head
	The goals are determined by the management, planning and organization of work is carried out independently, independent preparation of decisions, decisions are made by the 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 of action for a group of departments, participation in the development of a company's strategy
Factor 4. Work experience
	No work experience required
	Work experience is required, not necessarily in this field
	Special experience in this field is required from 1 to 2 years
	Extensive experience in this area is required (at least 3 years)
	Serious experience is required not only in this area, but also in related areas
	In addition to professional experience, significant experience is required in the practical management of a large number of employees.
Factor 5. Level of specialized knowledge (qualifications)
	Sufficient secondary or non-higher education, special knowledge is not required
	Higher education is required, not necessarily specialized, the presence of a basic level of proficiency in special techniques and technologies
	Higher specialized education is desirable, fluency in special techniques and technologies
	Higher specialized education, in-depth special knowledge and basic knowledge in related fields are required
	Higher specialized education, special knowledge in the field of development, the need for an academic degree
	Higher specialized education and additional in the field of organization and personnel management
Factor 6. Level of contacts
	Communication at the usual level, there are practically no contacts with clients and external organizations
	Periodic contact with clients and external organizations under the supervision of a line manager
	Regular external and internal contacts, external contacts at the level of performers are included in the functional duties
	Ongoing contacts with mid-level executives of external organizations
	External contacts at a high official level, requiring complex negotiations, a vision of the strategy and policies of the organization. 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 execution of single operations
	The work is more varied than monotonous, performing several functions that do not require much effort
	Diverse work requiring the use of elements of analysis, logical reasoning and the choice of ways to solve the assigned tasks
	The work requires a detailed analysis, the choice of ways to solve various problems, coordination with related departments
	Work related to a creative approach to the search and system analysis of information, with the isolation, formulation and formulation of problems, the development of ways to solve problems
	Work related to the strategic vision of the development of the direction of work, the integration of approaches to solving problems of different departments
Factor 8. Cost of error
	Errors affect their own work and the work of employees within the team
	Errors lead to disruptions in the work of employees throughout the department
	Mistakes 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 disrupt the work of a number of departments.
	Mistakes can lead to company-wide financial losses

A prerequisite for this stage is the determination of a set of universal factors for evaluating all positions (from worker to director), that is, all company personnel should be evaluated according to one set of evaluation criteria.

Stage 5. Distribution of factors by levels (ranking)

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

The step * between the levels must be the same. The number of levels themselves depends on how accurately you want to assess. So, our virtual company took six levels of complexity to describe the factors. And I named them A, B, C, D, E, F ( tab. 2).

Stage 6. Assessment of 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 high points to each level, so as not to complicate the calculation methodology. Therefore, in the given example, we estimated the levels as follows:

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

• use objective scoring procedures for the position, as subjective bias will lead to big problems down the road. After all, the main goal of the grading system is to make sure that the company, on the one hand, can retain its employees by paying them competitive remuneration, and on the other, maintain the effectiveness of its payroll expenses;
• strive to harmonize all positions and evaluate them according to the same rules;
• the step between the levels must be the same.

The result of this stage of the introduction 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 accrual basis ( tab. 3-5).

Table 3

Position General manager

Evaluation factor							Factor significance on a 5-point scale	Final score by factor
	A 1	B 2	C 3	D 4	E 5	F 6
Employee management
A responsibility
Independence in work
work experience
Special knowledge level (qualification)
Contact level
Difficulty of work
Error cost
TOTAL POINT

Table 4

Position HR Director

Evaluation factor	The level of compliance of the assessment factor and its weight, in points						Factor significance on a 5-point scale	Final score by factor
	A 1	B 2	C 3	D 4	E 5	F 6
Employee management
A responsibility
Independence in work
work experience
Special knowledge level (qualification)
Contact level
Difficulty of work
Error cost
TOTAL POINT

Table 5

Position CFO

Evaluation factor	The level of compliance of the assessment factor and its weight, in points						Factor significance on a 5-point scale	Final score by factor
	A 1	B 2	C 3	D 4	E 5	F 6
Employee management
A responsibility
Independence in work
work experience
Special knowledge level (qualification)
Contact level
Difficulty of work
Error cost
TOTAL POINT

Stage 7. Assessment of factor weight

The calculations of this stage are carried out depending on the degree of importance of each of the described factors for your company. For our virtual company, we took the significance of the factor on a 5-point scale. When calculating, you need to take into account the degree of importance of increasing points from 1 to 5 ( tab. 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 the technical department - 134;
• head of the personnel department - 145 points.
• head of the HR department - 164;
• chief accountant - 168.

Stage 8. Calculations 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 results of the calculations, all positions are arranged in a hierarchical pyramid, depending on the total score received. Then this pyramid must be broken down into grades.

Positions are grouped into grades according to the principle of receiving approximately the same number of points, based on the functions performed and depending on the degree of importance of this position for the enterprise. As a result, only positions that are close in terms of the estimates received should get into each grade. After the work done in our company, we got 9 grades ( tab. 6).

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

Now we have to "impose" the received points on these grades. For this, a formal-static method is used. In our conditional company, the entire aggregate of total points was divided into 9 intervals (grades). Next, we define the boundaries of the grades. The points were distributed by grade as follows:

• the 9th grade includes 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 the posts. Our virtual company has identified the following divisions and categories of personnel:

Stage 10. Determination of official salaries and calculation of salary forks

A prerequisite for this stage is the determination of the size of the official salary based on the results of the calculation of points. It should be carried out according to uniform rules, regardless of the position and division.

To establish an 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 highlight key positions for which market parameters and, accordingly, monetary compensation for this or a similar position will be determined.

We analyze the labor market in order to understand how much is paid 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 spreadsheet, you need to reconcile it with the company's CFO.

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

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

Since the official salary reflects the basic value of the workplace, and not the efficiency of a particular employee, it is possible to "impose" a fork of the same range for each grade.

The ranges define the high and low levels. The size of the ranges depends on the company's perception of how the same ranges support career growth and other organizational values. Therefore, the fork usually has a constant value. The names of the levels of the surebet and will be categories of professional growth ( Scheme 1).

Scheme 1. Ranges of the salary fork

By setting, thus, the average market salary as the minimum in our company, we automatically raise the authority and competitiveness of the company in the labor market. And a 30 percent range of salary increases 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 the final calculations of the grading system are put into effect, it is imperative to check this official salary for compliance with the Labor Code and the Law "On Remuneration".

The result of the work is a standard table format with a description of all intracorporate positions, including the name of the positions, their linear affiliation, subordination, grade number, integral indicators of the value of each position, affiliation to the grade level, salary fork ( tab. 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.

Step 11. Play the graph and analyze the results

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

Grade chart

A prerequisite for plotting a chart is the intersection of grade pieces. The places of intersection are the prospect of professional growth and, accordingly, an increase in the official salary. This intersection proves that a professional worker can receive more in his grade than any specialist in a neighboring higher grade.

Various analytical conclusions can be drawn from this graph.

This diagram explains the job hierarchy by job content. Each position in this structure defines the requirements for each position, and also allows employees to define:

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

But the most important thing is that immediately upon receiving the data of the final pivot 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 put virtual points No. 1 and No. 2.

Having carefully analyzed, we can conclude that these points "fall out" of the general corridor for the calculation of official salaries.

So, for example, point number 1 says that the knowledge, powers, responsibility required by this position are small, and the payment for them is determined to be significant. Accordingly, the position is overestimated on the official salary scale and underestimated 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 disproportionate to the workload. Consequently, this position is overestimated on a point scale and underestimated on a salary scale.

In such cases, it is necessary to review these discrepancies and recalculate them again.

But if all positions fall into the undeformed 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 to manage the payroll (payroll) and makes the payroll system flexible;
2. increases the payroll efficiency from 10 to 30%;
3. streamlines the imbalance of wages in the enterprise. When the principle of payroll becomes transparent, then lazy and useless employees who are used to only knocking out 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 fixed part of salaries, as well as track their dynamics;
5. is a convenient tool for determining the size of the base salary of a new position;
6. allows you to track the levels and departments where there are discrepancies in payroll;
7. allows you to compare the payment levels of your company with the payments of others in the same market segment or within the group;
8. allows you to correlate the average salary of any position in your company with the average market;
9. allows you to eliminate significant inefficiency of work, as it reveals duplication of functions, inept management of line managers by their subordinates;
10. solves the problem of calculating additional payments for work performed according to standards that are lower or higher than the official ones;
11. facilitates the process of indexing salaries;
12. allows you to determine how much the company costs a position of any level;
13. is an effective way of integrating various divisions of the holding into a single structure;
14. optimizes the placement of labor resources.

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

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

So, after analyzing the salary market, we can conclude that their variable part sometimes reaches 90%. It shouldn't be like that. 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 remuneration system.

This is how the salary structure looks like before the introduction of the grading system ( Scheme 2).

Scheme 2

This is how the salary structure should look after the introduction of the grading system ( Scheme 3).

Scheme 3

Let's explain why this should be so.

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

And all other allowances of the variable part (bonuses, benefits) should disappear. For they are faceless and unfounded. The less any 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 grading system, a new system for calculating the variable part of the salary should be introduced. This technique is called KPI (Key Performance Indicators- Key Performance Indicators), but it is designed to calculate the efficiency and effectiveness of labor in percent.

Today the system of grades and KPI are the two best payroll systems. Together, they completely unify the calculation of both components of the salary (constant and variable). But until your company has a unified system for calculating the variable part, it should be brought to the attention of each employee that the bonus is given not just for the performance of functional duties, but for quality and quantity.

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

1. the minimum and average bonuses are charged for the contribution to the results of the division's work, as well as for the quality and quantity of fulfillment and overfulfilment of obligations (plans);
2. the maximum bonus - for a contribution to the results of the company's work and for individual records for super-class specialists;
3. a special bonus that is accrued for rationalization proposals, the implementation of which brought the company a profit after the fact. For example, 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 did not think of) - the bosses should encourage this in monetary terms and in proportion to the effect of the project implementation result.

All Western companies work according to this scheme. In order for both the constant and the variable parts of the salary to be unified according to a single principle and brought into line, so that it is not necessary to formally determine in manual mode which percentage of the bonus should be accrued to whom, in parallel with the grading system, they introduced the above system KPI to evaluate labor based on the results of fulfilling obligations.

Table 6. Table of grades of assessment of positions Download (.pdf 1,1 Mb)
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* The size (distance) between the previous and next difficulty level. Expressed as a mathematical value, usually defined as a percentage or in numbers. In the hovered example, we took the simplest, but evenly increasing step - 1, 2, 3, 4, 5, 6 points.

The existing systems of remuneration in modern enterprises are very diverse and sometimes differ significantly. The main goal of any wage system is to stimulate the employee to work better and more productively. For this purpose, various systems and forms of remuneration have been developed by both domestic and foreign economists. Within the framework of this article, we will consider one of the most popular salary systems at the present time - salary based on grades.

The essence

Let's consider the concept of grades in wages and what it is in more detail. This will be discussed in the article below.

The use of a grading system in remuneration implies taking into account the specific results of the work of employees, depending on their profession. Various factors related to a particular employee are also taken into account: his work experience, behavior and culture of communication, discipline in the work collective, compliance with norms and regulations, final qualifications, even appearance. All these factors and moments can affect the final calculation of remuneration when applying a system based on grades.

What are pay grades? It is a word that comes from the English grade, which means "grade" or "degree".

This system can be represented in the form of a constructed table of ranks, in which all employees are located in a special order. Each employee is assigned his own individual rank, which has the most direct impact on the size of the salary at the end of the reporting month. Thus, it is this system that makes it possible to form the system of payments and remuneration for employees in the most correct way. This system is convenient for the employee because it is clear and simple. It is transparent, since each employee understands well what exactly he needs to do in order for his salary to increase in the next period.

Application possibilities

Since this system of grades in wages is innovative, the possibilities of its application are only being mastered in our country. However, the management of many companies has already realized all the advantages of this system and is actively introducing it among employees. It is becoming more and more popular. But there is a limitation on the implementation of the system: its high cost, so small companies almost never or rarely use it. If the company has less than 50 employees, then there is no point in implementing the system.

The grading system is more suitable and optimal for medium and large companies. It is quite difficult to implement and apply, it requires a staff of personnel. However, in practice, it justifies itself, as it provides excellent opportunities to correctly calculate the remuneration of all employees without errors and inaccuracies.

Pay grades, advantages and disadvantages will be discussed below.

Positive sides

Of course, this system has many advantages. Grades in wages, according to employers, have the following advantages:

• the amount of the reward for each employee is in direct proportion to the efficiency of his work in the workplace;
• it is easy to develop a personnel development strategy for the company's personnel and individual specialists, as well as provide opportunities for the growth of company employees;
• the presence of a connection between the level of responsibility of an employee of the company and his work results;
• the organizational structure of the company becomes more rational;
• the system provides significant assistance in the management of payroll, and makes bonuses more flexible;
• the efficiency of payroll is growing up to 30%;
• the imbalance of wages in the company is reduced, since in the process of application lazy and useless employees are eliminated, while the role of employees who really invest their strength in the organization is increased and evaluated;
• it is easy to analyze the structure of wages in terms of constant and variable shares;
• it becomes possible to compare the company's wages with the industry average;
• inefficiency in the company decreases, as duplication of functions and poor management are eliminated;
• the issue of charges and additional payments to employees is easily resolved.

Indexing of wages is also simplified. Grades in remuneration, according to the reviews of the majority of employees of companies, allow them to show their best in professional terms and receive appropriate remuneration for this.

Negative sides

We can also highlight the negative aspects of the implementation of this system:

• high costs of creating a system and ensuring its functioning;
• the need to involve experts in order to establish a rating scale;
• there is a risk of subjectivity in the initial assessment of the implementation of grading.

rules

When using a grade-based pay system, the following basic rules apply:

• drawing up a questionnaire listing all employees of the company is the initial stage;
• depending on the position and specialty, special individual indicators are set, which will later be used as assessment criteria when calculating the remuneration of an employee within the framework of his profession;
• the size of the maximum and minimum points that this employee scored within the framework of his workplace is determined;
• the scores obtained are grouped and divided into certain intervals, and each of such intervals is already tied to a specific grade;
• at the final stage, you can set the salary level, taking into account the data and parameters identified above.

Features and differences of the system

Sometimes the grading system is compared to the tariff system. There may be similarities, but there are also differences. Let's consider these points in more detail.

The general characteristic is that both there and there there is a hierarchical structure of positions, within which salaries (grades) are built according to the principle of increasing.

However, we note a number of differences, which are presented in the form of a table below.

Differences between the grading system and the tariff system

Tariff system	The system of grades in wages
It is based on the assessment of existing professional knowledge, skills and work experience	A wide range of criteria includes such parameters as: communication, work complexity, independence, mistakes, etc.
The principle of growth in the construction of posts	Possible overlap of parts of close grades
The structure of the wage scale is hierarchical, it is based on the minimum wage, which is then multiplied by the developed coefficients	The structure of grades is based on the weight of the position, calculated in points
The growth of posts is vertical	Placement of positions is associated with the principle of importance in the company

The maximum number of points that can be set is 10.

Among the possible criteria that are used to evaluate employees, one can suggest such as experience, skills, knowledge, skills at work, responsible attitude to work, achievement of results, attentiveness, etc.

The amount of remuneration can be determined according to the following rules:

• 1-10 points awarded 1 grade;
• 11-20 points were awarded 2 grades;
• 21-30 points awarded 3 grades;

However, it should be borne in mind that the indicator and the level of remuneration of different employees (for example, a loader and a department head) are different. This means that the amount of remuneration received by grade is also different, it is set in accordance with market realities.

For example, if we are talking about technical personnel, then this amount varies from 10 thousand rubles. up to 12 thousand rubles. And if we are talking about the head of the department, then the scope will be 25-30 thousand rubles.

By such a ranking, several groups of company employees can be distinguished:

• Group A - professional workers who are highly valued in the company due to their skills and abilities. These are usually leaders, innovative workers, innovators and generators of ideas and innovations.
• Group B - it includes fairly experienced specialists who are at an average level. These are, as a rule, "salespeople", managers, employees working with partners, advertisers, etc.
• Group C occupies the bulk of the employees, these are ordinary ordinary workers. However, among them, as a rule, there are many employees with high potential, capable of development in their professional field, so they always have options for increasing and increasing salaries.
• Grade D is associated with a minimum level of responsibility. These are, as a rule, service personnel who do not require any special knowledge and skills.

This classification is the most common. The amount of his payment depends on the grade in which the employee is located.

Methodology for the formation of wages using grades

Below we present material on the formation of grades in wages using the example of calculating a certain company.

Stage 1: identification of key factors.

Let's take 6 criteria:

• management of subordinates and their number;
• does the position affect the final financial result of the company, that is, the profit;
• ability to make independent decisions;
• the need for work experience;
• the level of qualifications for the position held;
• the presence of connections from the outside.

Stage 2: we single out separate subparagraphs for each factor.

Distribution by factors

Employee management
A	lack of subordinates
B	subordinates are absent, but consultation is necessary from time to time
C	among subordinates 2-3 people
D	among subordinates: group
E	the whole department is subordinate
F	subordinate several departments or a branch
Degree of responsibility
A	fulfilling only one's duties
B	work affects the profit of the company, but the manager always controls this process
C	work is directly related to the results of the company
D	decisions made affect the firm's income
E	responsibility for the results of a group of subordinates
F	responsibility for the results of several departments
Work independence
A	lack of decision making
B	guided by instructions
C	prepares decisions for approval from the authorities
D	the employee gets the goal and decides it himself
E	the employee sets the goal himself and solves it himself
F	the employee sets the strategy of the company as a whole
Professional experience
A	absent
B	present, but in a different area
C	1-2 years
D	over 3 years
E	over 3 years, experience in other areas too
F	have both experience and skills in the profession
A	the average
B	higher, it is possible not according to the profile
C	higher in profile, but without practice
D	higher in profile, additional knowledge
E	academic degree
F	two or more formations by profile, practical skills
External Relations
A	absent
B	for work
C	negotiations with partners
D	communication with the management of other companies
E	deep connections with the management of other firms
F	with dignitaries

Step 3. Now each position needs to be assigned points. Since we have 6 letters in each category, we will rate it from 1 to 6.

Chief Accountant

							The value of each criterion	Total score
Employee management
Degree of responsibility
Work independence
Professional experience
External Relations

The total of points is 91 points.

General manager

Factor	A	B		D	E	F	The value of each criterion	Total score
Employee management					5 points		5	25 points
Degree of responsibility					5 points		5	25 points
Work independence				4 points			5	20 points
Professional experience						6 points	5	30 points
Education and qualifications						6 points	5	30 points
External Relations					5 points		5	25 points

The total score for the position is 155 points.

The overall score for the position is 83 points.

Logistician

Factor							The value of each criterion	Total score
Employee management
Degree of responsibility
Independence
Professional experience
Education and qualifications
External Relations

The total score for the position is 96 points.

Service worker

Factor for research							The value of each criterion	Total score
Employee management
Degree of responsibility
Independence
Work experience
Availability of education
External Relations

The total score for the position is 62 points.

Stage 7. Establishing official salaries and forks.

A table of grades in wages and an example of calculations are presented below.

Grade table

Grade number	Number of points	Subdivisions	Position	Category	Minimum wage, thousand rubles	Average salary, thousand rubles	Maximum salary, thousand rubles	Premium,%
1	from 8 to 25
2	from 26 to 40
3	from 41 to 65	service department	service worker	serving	19	20	21	20
4	from 66 to 85	sales department	sales manager	trade	29	30	32	25
5	from 86 to 100	bookkeeping	Chief Accountant	employees	38	40	42	35
		logistics Department	logistician	employees	33	35	37	35
6	from 101 to 125
7	from 126 to 160	administration	general manager	managers	48	50	53	40
8	from 161 to 180
9	from 181 to 200
10	from 201 and above

Thus, a grading system was developed for the company.

Grading system at Rosneft

Rosneft is one of the largest Russian oil and gas companies today with huge revenues and profits. When determining the grades in wages in Rosneft, the following factors are taken into account:

• qualification;
• the level of education;
• number of shifts per month;
• the quality of the work performed;
• employee discipline

An analysis of the possibilities of using the grading system at Rosneft in recent years has revealed the following points:

• an increase in the number of employees who have an additional payment for professionalism;
• an increase in the level of average wages for managers, specialists and employees by an average of 2%;
• the growth of wages for blue-collar occupations amounted to 5% per year;
• a drop in the share of bonuses in the wages of workers and engineers from 52% to 40% with an increase in the part of the tariff.

Grading system on the example of Sberbank

The system of grades in wages at Sberbank was introduced long ago to replace the old Soviet tariff system. Within such a system, each employee, even without a career advancement, can receive a salary increase by increasing the grade. It turns out that within one position of an employee there are several more steps for growth. Under this system, among employees, the salary is approximately 50% of the salary. Everything else is quarterly, monthly, annual employee bonuses. The size of each of these awards is influenced by the assessment of the immediate supervisor.

Grading system in the company "Rosatom"

Wage grades at Rosatom have also been introduced for a long time and productively.

The main criteria in the development of grades are: the role, place, value and content of the employee's position in the organizational structure. The assessment is carried out with the involvement of a commission of experts.

The company has 18 grades, with grade 1 being the highest and belonging to the CEO. Within each grade there is also a distribution in zones A, B, C. Distribution is carried out according to the principle of priority of positions.

Final word

In modern conditions, the grading system is innovative for wages. Appeared relatively recently in Russian conditions. However, many companies have already evaluated the effectiveness of its implementation.

A big plus of such a system is the possibility of correct and rational calculation and determination of earnings for an employee of a particular profession. Grading provides an increased level of employee motivation, stimulates them to personal and professional growth, and as a result - to achieve new heights by the organization itself.

Russian legislation does not allow discrimination in the sphere of labor, therefore, employees in the same position should receive an equal salary. Employers are trying to circumvent this norm by introducing graded pay systems. How it works in practice, how to implement and develop a grading system, read our article

In this article, you will learn:

What is the difference between the system of grades in wages and the tariff

The system of grades in the Russian practice of using certain methods of remuneration has appeared quite recently. Its name comes from the English word grade. Translated, this means - class, degree.

This system allows employees with the same positions to be paid different salaries, which the law prohibits. There is a salary for each established grade of position, and in general, a range of values ​​is indicated for the position.

The graded pay system relieves the employer from the need to "inflate" the staffing table and invent several names for virtually identical work operations. The introduction of senior, junior and general manager positions is no longer required. They will be replaced by a grade.

There is a certain similarity between the grading system of remuneration and the tariff system. Both there and there there is a differentiation of wages, depending on the category or grade. However, the limitation of the tariff system lies in the fact that it is based only on the complexity of the operations performed and does not take into account many factors of modern business. It is ideal only for working professions that require a repetitive execution of operations. Whereas the change in the grade of the position is based on:

• the complexity of the work performed;
• qualifications;
• responsibility for the mistake made;
• the importance of a particular employee for the business;
• independence;
• the presence of the necessary "connections", etc.

Unlike the tariff system, grades allow you to develop in a company not on a vertical level with a mandatory change of position, but horizontally. That is, while holding the same job position, an employee can have significant wage advantages over his lower-class counterpart. A situation may arise when the income of a high-grade employee may approach or even exceed the income of people in top positions in the company.

Types of grading system

We have already sorted out what a grade is in the remuneration system, now we will analyze which type of it is better to choose. Traditionally, four types are distinguished, differing in the level of complexity of calculations.

The first degree of difficulty. It does not imply any calculations and is based only on the distribution by class, focusing on the complexity of the labor process and the tasks performed. The implementation of such a system in a company does not require the involvement of third-party consulting organizations; the management staff can also handle it.

The second degree of complexity. It is based on the use of the point-factorial method of Edward Hay. It is ideal for small companies.

The third and fourth degrees of difficulty. There are complex mechanisms for calculating points and factors affecting the level of salary. Mathematical calculations use matrices, tables, graphs. The use of such a system is advisable only at large enterprises and only specialized companies can do it. And the implementation can take from six months to a year.

For which enterprises is the grading system suitable?

The grading pay system is usually used in a medium to large business. The use of such a system in a small enterprise is impractical, the gradation of positions here can be done without assigning a class.

Whereas for large players in the economy, such a task can cause many problems, therefore, managers resort to the grading system. An employee can increase his income by improving his qualifications, and for this you do not need to wait for a vacancy at a higher level. The staff is well motivated to improve their skills and acquire new knowledge. In addition, the employer can somehow delineate the hierarchy of many managers.

Grader system introduction and performance evaluation

The introduction of a grader system, like any other, requires compliance with the procedure provided for by the legislation of the Russian Federation. Since the amount of remuneration and the algorithm for its calculation are an essential condition of the employment contract, then:

1. An order of the head is issued to change the remuneration system to grader.
2. The employer notifies the staff of the upcoming change in writing 2 months before the entry into force of the innovations.
3. Additional agreements to labor contracts are signed.
4. LNA, collective agreements and Regulations are changing.

Evaluation of the effectiveness of the changes introduced should be assessed not only at the end of the procedure, but also at the stage of its planning. It is produced by constructing special graphs and tables. After implementation, the assessment is necessary to correct possible errors and eliminate the facts of employee discrimination.

Advantages and disadvantages

Like any graded wage system, it has its advantages and disadvantages.

Advantages:

• flexible and efficient system combining fixed and variable payments;
• optimization of org. structures;
• assessment of employees using a unified system;
• increased motivation;
• reduced staff turnover;
• an understandable system for employees regarding development prospects.

Disadvantages:

• the need to involve third-party specialists;
• significant financial costs at all stages (development, implementation, maintenance);
• difficulty in objectively assessing the position;
• subjectivity of the assessment.