Methodical Bases of Tariff System Development at Small and Medium-Sized Enterprises
S I Babina, E A Morozova
S I Babina
Available Online 17 March 2020.
- https://doi.org/10.2991/aebmr.k.200312.111How to use a DOI?
- Tariff systems of small and medium-sized businesses are mostly poorly structured, which is very often the cause of conflicts in the team, employee dissatisfaction with the wage system due to its incomprehensibility, low productivity. The article presents the mechanism of developing a tariff system for small and medium-sized businesses based on the concept of internal worth, according to which the work/position has value due to its influence on the organization performance, depending on the level of responsibility and competencies required for its implementation. To determine the internal worth the method of a point estimation on compensation factors reflecting the properties and characteristics inherent in all types of work/positions is used. This method described in the scientific literature is widely used by well-known consulting companies (Hay Group, Watson Wyatt and others) to develop personnel remuneration systems in companies around the world. Due to the dissimilarity of the tasks facing each enterprise, its own set of factors with different significance strength of each of them for a particular business is used. In the methodology proposed by the authors, the method of positions distribution by grades is also used. Posts assigned to the same grade have equal worth and the same wage range should be used for them. The authors propose a linear mathematical model for calculating salaries by grades. The approach to the tariff system development and its successful implementation in practice can create a motivational circuit, which will provide the desired message for all other enterprise remuneration subsystems.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - S I Babina AU - E A Morozova PY - 2020 DA - 2020/03/17 TI - Methodical Bases of Tariff System Development at Small and Medium-Sized Enterprises BT - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020) PB - Atlantis Press SP - 793 EP - 800 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200312.111 DO - https://doi.org/10.2991/aebmr.k.200312.111 ID - Babina2020 ER -