How grades differ from other payment systems

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When developing a grading system, the main emphasis should be placed on the transparency of the system so that each employee understands how his salary is formed.
On average, developing a grading system takes a year, sometimes you can create and implement a system in half a year. But if the business is large, with a complex structure, it can take 1.5 years.

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Advantages and disadvantages of the grading system
Benefits of grades:

Make the payment system more understandable. The grade system allows you to determine the salary level for each employee. Each team member understands how much they can earn in different positions. This reduces the dissatisfaction of the team associated with the fact that someone gets more and someone gets less.
Motivate to develop. Pay based on grades motivates employees. They understand that there is an opportunity for advancement in the company. If they develop their skills, they can move to another grade and, accordingly, receive a higher salary.
Eliminate unfairness. Grades establish fairness in salaries, since all employees with the same responsibilities receive the same pay.
Disadvantages of grades:

Individual achievements and quality of work are not taken into account. Sometimes uganda phone number list employees can exceed the plan or cope with tasks better than their colleagues. At the same time, their salary will not be higher than that of colleagues from the corresponding grade. This can lead to disappointment and decreased motivation. To eliminate such risks, a personnel motivation system is thought out , and bonuses are assigned for each grade.
Implementing the system is time-consuming. Creating grades can be quite complex. A grading system requires time and resources to analyze and evaluate the relevant positions .
Makes the assessment of work less objective. The grading system assumes a rather strict approach to team management. Instead of assessing real work results or KPIs, the emphasis is on maintaining levels.
Difference from the tariff payment system
A wage system is a set of fixed rates that are applied to workers based on their position and qualifications. For example, each profession has its own rate, which indicates how much money an employee should receive. A wage system is often used in government agencies and in companies where the focus is on compliance with the rules.

For example, in schools, teachers' salaries depend on their length of service and qualifications. The higher the level of education of a teacher and the more experience he has, the higher the salary.