Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020)

Methodical Bases of Tariff System Development at Small and Medium-Sized Enterprises

Authors
S I Babina, E A Morozova
Corresponding Author
S I Babina
Available Online 17 March 2020.
DOI
https://doi.org/10.2991/aebmr.k.200312.111How to use a DOI?
Abstract
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.
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Volume Title
Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
17 March 2020
ISBN
978-94-6252-929-8
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200312.111How to use a DOI?
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  -