How Do You Define Job Grades? Seeking Insights on Transition Factors in HR

Hi, This is my first time communicating. My name is Mahadere Berhanou, and I work for an international organization in Ethiopia as an Admin and HR Coordinator.

I have a question regarding the design of a job grading system in our organization. We have conducted salary surveys by leveraging the experiences of similar organizations. Specifically, I am interested in understanding how job grades are defined and what variables are considered in this process. For instance, when defining the transition from Job Grade 1 to Grade 2, what factors should be taken into account?

I would highly appreciate any insights or guidance on this matter.

Best, Mahadere Berhanou

Hi, nice query. Please provide further information including:

a. Organization type (Software/Manufacturing) - this would help in deciding on the variants.
b. What is the existing grading system? This would help in understanding if any changes need to be made at a broader level or starting from scratch.
c. Number of current employees and expected growth in a 2-year period.
d. Departments/segments in the organizational structure (nature of the organization).

Vinod Vijapur

Mr. Mahadere Berhanou

Hi, I am from Kolkata. Your problem is very simple. The reply from Vinod is right. You may follow that. I am just adding on to that. Although I do not have any idea of the business of your organization. Still, at first, you need to do a total and intensive skill and responsibility mapping within your organization. Do it as per the existing set of positions (Technical / Non-technical), Plant level, and for office staff (Support staff) as well as for the key positions. Compare the existing positions vis-a-vis skill sets with the similar industries; you will realize and identify the positions. Once the similar positions with the given skillset are identified, go ahead and start making the salary structure keeping in mind the variants.

Vinod, I need your comments also on this.

Regards, SGR Kolkata

Dear Mr. Mahadere Berhanou,

I am Raja Pillai from Dubai. I assume you do not have a grading system and you would like to create a grading structure based on the salary survey result you had conducted. Is the salary survey conducted from consultants from whom the grading points ranges are available? For example, if you would have conducted the salary survey from Hay Group, along with the market data on salary and benefits, they would have given the grade points with ranges also. If yes, then, follow their Job evaluation system. Evaluate the positions from the relevant Job Descriptions. Place the Job evaluation result of the position as per the grading points provided.

I hope you find my explanation useful.

Thank you and best regards,
Raja Pillai
Email: nspillai2002@yahoo.co.in

Hi,

Grading, designation, and salary range depend on many factors. I agree with Vinod's comments on the same. You can map:
(A) Relevant qualifications vs. (B) irrelevant qualifications for the desired position.
(C) Relevant experience vs. (D) irrelevant experience.

One thing to keep in mind is to map how many positions will satisfy all the criteria. For example, if someone enters your organization with a combination of A and B qualifications and retires from your organization, you can denote it as AC, AD, BC, and BD. Put marks accordingly and derive your salary structure. This process will give you a clear picture.

It is a lengthy process that requires time to clear. However, the above information will give you an idea of how to analyze any company for the same purpose.

Regards

Hi,

My scenario is similar to that of Mahadere. I have no experience in mapping the salary structure of the industry. Currently, I am working in a finance company. Can somebody help guide me on the way forward?

Regards,
Dev