Differences between grading and the tariff system
Posted: Wed Jan 22, 2025 10:27 am
There is a widespread belief among HR professionals that grading is something like a wage scale. On the one hand, both systems are indeed similar, as they are based on arranging positions in order with increasing salary. However, there are also important differences between them.
Tariff systems Grading systems
1. They involve an assessment of professional knowledge, skills and work experience 1. They use different criteria for evaluating positions: management; independence; complexity of work; communications; responsibility; cost of error and others.
2. Positions are arranged one why do vietnamese use zalo? after another in ascending order. 2. Adjacent grades can be interrelated. As a result: an employee in a lower position, with the appropriate professional qualities, can earn more than a specialist whose position is higher in the grade system
3. Calculation of the salary amount for the position: the minimum amount is multiplied by coefficients depending on the qualification, grade, position, etc. 3. When calculating salaries, the points established for a specific position are taken into account.
4. All positions are ordered from bottom to top (from worker to manager) 4. The order of positions is determined solely by value to the company
For example: in an organization whose activities are related to high technologies, the second most important people after the management team are IT specialists, since the size of the profit depends on the results of their work, and then come employees of other departments.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
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How to define your target audience without mistakes?
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pdf 8.3 mb
doc 3.4 mb
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Pros and cons of grading in a company
Unlike Russia, this system has been used in European countries and the USA for quite a long time and has proven its effectiveness. Based on the obtained foreign statistical data, conclusions can be drawn about the advantages and disadvantages of grading.
First of all, let's note the advantages:
dependence of income level on labor results;
determining the importance of each individual employee;
the opportunity for professional growth and increased earnings when moving to a higher grade while remaining in your current position;
transparency (each employee knows how his salary is calculated and what opportunities he has for professional development);
motivation (the employee strives to improve his/her performance and move to the next level).
Pros and cons of grading in a company
A properly organized grading system helps improve the personnel. But in addition to the obvious advantages, it has certain disadvantages:
difficult to implement (a number of measures are required at the preparation stage and later);
high costs. In order to achieve a fair assessment of the work of employees when assigning salaries and in general due to the complexity of implementing grading, it is necessary to involve independent experts, which leads to increased costs;
problems with forming a positive attitude towards the new payment system among employees (there is a possibility that they will be distrustful of this method and, as a result, will lose motivation);
novelty (if employees were unable to understand the specifics of grading, especially in the case of a reduction in the salary for their positions, they may consider this discrimination and complain to the relevant authorities).
Tariff systems Grading systems
1. They involve an assessment of professional knowledge, skills and work experience 1. They use different criteria for evaluating positions: management; independence; complexity of work; communications; responsibility; cost of error and others.
2. Positions are arranged one why do vietnamese use zalo? after another in ascending order. 2. Adjacent grades can be interrelated. As a result: an employee in a lower position, with the appropriate professional qualities, can earn more than a specialist whose position is higher in the grade system
3. Calculation of the salary amount for the position: the minimum amount is multiplied by coefficients depending on the qualification, grade, position, etc. 3. When calculating salaries, the points established for a specific position are taken into account.
4. All positions are ordered from bottom to top (from worker to manager) 4. The order of positions is determined solely by value to the company
For example: in an organization whose activities are related to high technologies, the second most important people after the management team are IT specialists, since the size of the profit depends on the results of their work, and then come employees of other departments.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
We have collected the best services for working with content
How to define your target audience without mistakes?
A proven guide to defining a company's target audience
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153347
Pros and cons of grading in a company
Unlike Russia, this system has been used in European countries and the USA for quite a long time and has proven its effectiveness. Based on the obtained foreign statistical data, conclusions can be drawn about the advantages and disadvantages of grading.
First of all, let's note the advantages:
dependence of income level on labor results;
determining the importance of each individual employee;
the opportunity for professional growth and increased earnings when moving to a higher grade while remaining in your current position;
transparency (each employee knows how his salary is calculated and what opportunities he has for professional development);
motivation (the employee strives to improve his/her performance and move to the next level).
Pros and cons of grading in a company
A properly organized grading system helps improve the personnel. But in addition to the obvious advantages, it has certain disadvantages:
difficult to implement (a number of measures are required at the preparation stage and later);
high costs. In order to achieve a fair assessment of the work of employees when assigning salaries and in general due to the complexity of implementing grading, it is necessary to involve independent experts, which leads to increased costs;
problems with forming a positive attitude towards the new payment system among employees (there is a possibility that they will be distrustful of this method and, as a result, will lose motivation);
novelty (if employees were unable to understand the specifics of grading, especially in the case of a reduction in the salary for their positions, they may consider this discrimination and complain to the relevant authorities).