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What is a reward system?

What is a reward system?

Deciding employee salaries and bonuses based on standards! Imagining employees' lives.

The compensation system refers to the system that determines employees' salaries and bonuses based on established criteria. The criteria in the compensation system are defined by the grading system and evaluation system. When designing it, it is important to refer to the average salaries in the industry, sector, and region, but it is crucial to envision employees' lives, including how many years it will take for them to be promoted and what their salaries will be, when setting compensation. [Key Points] ■ Criteria are defined by the grading system and evaluation system ■ Set salaries with an image of employees' lives in mind ▼ If you want to know more about the compensation system ▼ Please download the '【Complete Edition】HRBrain's Manual for Designing Performance Evaluation Systems' from the link below!

  • Personnel Information System

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Basic Salary Determination Concept: What is Skill-based Pay?

Basic Salary Determination Concept: What is Skill-based Pay?

In addition to contributing to long-term talent acquisition, there is an advantage in being able to adjust the offer amount during mid-career recruitment.

The functional salary is fundamentally a concept associated with the functional grading system, similar to age-based and length-of-service salaries within the grading system. However, instead of being based solely on age, it determines the base salary based on functional abilities, meaning that as job performance capabilities improve, the base salary increases. The functional salary needs to evaluate the individual's capabilities and reflect them in the base salary. Generally, a salary range is set for each grade, and the base salary is increased by the predetermined salary increment based on the level of evaluation. ▼ If you want to learn more about the concept of determining base salary ▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!

  • Personnel Information System

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How to create an evaluation system: What kind of corporate culture do you want to build?

How to create an evaluation system: What kind of corporate culture do you want to build?

Consider what kind of company culture you want to create based on the actions of each individual employee!

What kind of corporate culture do you want to create? This means envisioning the future behaviors you want from your employees. Considering what kind of company culture you want to build based on the actions of each individual employee is the key point in designing a personnel evaluation system that permeates the organization. There are several frameworks for thinking about organizational culture, and we select them according to our clients' needs. 【Competitive Values Framework】 ■ Innovation Culture: A culture that values cultural transformation and creativity. ■ Market Culture: A culture that values market competition (winning in the market). ■ Family Culture: A culture that values familial intimacy and a sense of camaraderie. ■ Bureaucratic Culture: A culture that values organizational stability and control. ▼ If you want to learn more about the evaluation system ▼ Please download the '【Complete Edition】HRBrain Personnel Evaluation System Design Manual' from the link below!

  • Personnel Information System

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Concept of Basic Salary Determination: Job-Based Pay and Role-Based Pay

Concept of Basic Salary Determination: Job-Based Pay and Role-Based Pay

The benefit is that motivation to aim for a higher level is generated!

Job-based and role-based pay are concepts associated with the job grade system and role grade system within a grading system. Since the base salary is determined by the job or role being undertaken, individuals in the same job or role will receive the same base salary. One advantage is that it creates motivation to aim for higher grades. A disadvantage is that, unlike age or length of service pay, it can make it slightly more difficult to achieve stability in living conditions. ▼If you want to learn more about the concept of base salary determination▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!

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Concept of Basic Salary Determination: Performance-Based Pay and Achievement-Based Pay

Concept of Basic Salary Determination: Performance-Based Pay and Achievement-Based Pay

Evaluate performance and results, and reflect them in the base salary! Motivation for achievements increases.

Performance-based pay and results-based pay are compensation methods known as "commission-based" that determine salaries based on performance and results. Performance and results are evaluated and reflected in the base salary. One advantage is that it increases motivation towards achieving results. A disadvantage is that it can make life less stable compared to job-based or role-based pay. ▼If you want to learn more about the principles of determining base salary▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!

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