Understanding Banding vs. Grading Systems: How Should Our IT Company Approach Performance Evaluation?

I would like to know the difference between the banding system and the grading system. My boss asked me to develop a performance-based grading system in our IT company. As of now, in HR-related policies and the appraisal system, the company is in the developmental stage. Currently, we have around 60 employees. This includes the CEO, CTO, 1 project manager, 1 technical manager, 1 HR manager, an HR Executive, 7 team leaders, 37 software engineers, and 10 junior engineers (with less than 6 months of experience).

Kindly provide me with insights regarding the above-mentioned matters.

Understanding the Grading System

The 'Grading' system refers to steps on a scale such as Outstanding, Above Average, High Average, Average, and Below Average. Some IT companies use the grades: Exceeded Expectations, Met All Expectations, Met Some Expectations, and Below Expectations.

For more clarity, you may search for 'EmpXtrack' on the web, which has helped many IT companies set appropriate appraisal systems in their environment.

Regards,