Global Grading System

from Wikipedia, the free encyclopedia

The Global Grading System ( GGS for short ) is a process for job evaluation that is used to systematize and evaluate individual positions in the context of the entire company.

The aim is to determine the value of positions as objectively as possible and to subdivide the positions into functional groups, depending on the size of the company. The gradations in the position ranking as well as the division into specific groups create a systematic representation of the company's employee structure.

Based on a job and organizational profile, the first step is usually to classify the individual positions in the respective functional band. The positions are then assessed using the so-called global grades, which also enable positions to be compared beyond the boundaries of the company. The Global Grading System thus offers the possibility, for example, of designing a remuneration structure in line with the market.

method

Figure Global Grading System - Grade Map

The procedure for a positive evaluation takes place in four steps:

  1. The creation of a job profile, where the main activity and responsibility lie, as well as other relevant criteria
  2. The cap of the company, where the top position is looked at according to the company structure. This cap can be between the global grades 16 to 25
  3. Allocation to functional groups, where classification into the Global Grade takes place
  4. The position evaluation or degree decision, where the classifications of the determined position are processed with software-supported programs

Market-based compensation

Figure Global Grading System (example)

The actual structure of the company determined in this way can now be compared with the market-based remuneration data. The resulting benefits are:

  • easy communicability
  • high transparency and traceability
  • simple system maintenance
  • Avoidance of an inflation of importance and position content
  • Avoidance of automatisms to reach the maximum within the salary band
  • Clear set of rules (checks & balances) for consistent application
  • Derivation of a market and performance-based remuneration of employees with the help of a remuneration structure

Salary development

Salary adjustment matrix

In order to adapt the salary increase rates to individual performance and market developments, it is also useful to implement a company-specific salary adjustment matrix. This instrument offers the advantage of high transparency and can easily be expanded to include criteria that are important for the respective company.

The Global Grading System also offers points of contact for other HR management topics:

  • Clarification of the organization (roles / levels): The position evaluation to locate the individual employees in the company's organizational chart enables the company structure to be revised.
  • Career paths / personnel development: The determination of individual career paths enables the implementation of optimal talent management measures for personnel development.
  • Compensation management / software support: Software-supported compensation management offers an easy-to-use and transparent solution for all compensation decisions.
  • Structure of fringe benefits: Orientation towards company policy and the market forms the basis for expanding the remuneration structure to include fringe benefits such as company cars, etc.
  • Competence management (management career / specialist career): Increase in efficiency through optimal use of the individual skills of each employee.
  • Position title structure: Uniform terminology promotes an understanding of the corporate structure, an overview of individual responsibilities and thus transparency.

criticism

The IG Metall has in 2003 in the series "contributions to the tariff policy," a booklet entitled Entrepreneurial systems for wage determination issued to the Global Grading System the company Watson Wyatt treated. The suitability of the system for evaluating employee performance is examined from the employee's perspective.

Competitor

Competitors in the international context of job evaluation are about Gradar the job evaluation engine, Mercer (consulting) with the system for International Position Evaluation or the Hay Group to the guide chart profile Method . In addition, there are a large number of smaller providers who have often developed company-specific derivatives of the Guide Chart Profile Method.

Web links

Individual evidence

  1. ↑ When the bonus becomes a malus - the Global Grading System from Watson Wyatt. Contributions to tariff policy. Entrepreneurial systems for determining remuneration. In: igmetall.de. Retrieved July 18, 2018 .
  2. ↑ Job evaluation and job evaluation, job evaluation and job grading with gradar the job evaluation engine. Website. In: gradar.com. Retrieved July 18, 2018 .