Introduction
grade salary labor
The traditional system of material compensation involves dividing the monetary remuneration of employees into a constant (base salary) and variable (bonuses, bonuses) part. At the same time, the base salary is a guaranteed remuneration to the employee for fulfilling a strictly established range. job responsibilities at a certain workplace, with a certain level of performance and in accordance with the rules and standards adopted by the company. If the salary is also related to the level of qualifications required in a given workplace, and the increase in the employee’s qualifications entails an increase in his salary within one position, then the fixed part of the salary begins to work as an incentive for the development of the employee, increasing the level of his professionalism.
Currently, traditional forms of remuneration are considered ineffective, which makes Russian companies improve the remuneration system by developing a fair form of incentives for employees to achieve the organization’s goals. But practice shows that not all remuneration systems meet the expectations of employees and poorly motivate them to devote more of their efforts to the prosperity of the company.
To motivate staff, it is necessary to focus on two main tasks: stabilizing the moral and psychological climate in the team and changing the system of material motivation. Developing a remuneration system taking into account all the necessary requirements is not an easy and resource-intensive task.
Its implementation is also facilitated by the changed relationship between employer and employees. Employees become more aware of the employer's problems in maintaining the enterprise, since otherwise they will face layoffs, i.e. loss of their source of income. This means that in the conditions of recovery from the crisis, the employee has to remember the need to balance the interests of both parties to the employment contract and understand that he can no longer dictate terms, but on the contrary, he will have to make significant concessions. At this stage, the employee came to understand the need to comply with the common interests of labor relations with the employer. A new effective remuneration system should be broader and more closely tied to the financial and economic achievements of the company, and therefore to the performance of a particular employee.
An overly rigid remuneration system used by the employer may, in the near future, lead to negative consequences.
For several years now, domestic companies, in order to effectively calculate salaries for employees, have been actively implementing a job evaluation system - grading.
The purpose of the study is to develop a system of individual salaries based on grading.
1. Grading as a method of improving the wage system at an enterprise
.1 Grading: goals, concept and essence
Grading is a system of procedures for assessing and ranking positions, as a result of which they are distributed into groups (grades) in accordance with their value to the company.
The essence of grading is simple: all company positions are assessed according to a number of criteria, such as the level of responsibility, qualification requirements, impact on financial results, etc., depending on the specifics of the company’s business. At the output, a system of functional job levels, where positions are arranged in a hierarchy according to their value to the business. The payment “fork” and volume are attached to the grade social guarantees and benefits. Thus, employee remuneration becomes not only transparent and fair, but, very importantly, manageable.
The grading system came to us from the USA, where in the early 60s of the last century Edward N. Hay developed a method for assessing positions of various professional profiles based on universal criteria. Since then, the grading system has successfully established itself in the West and is today considered the best basis for a transparent and manageable remuneration system.
In Russia, the grading system replaced the Soviet-era tariff schedule, which turned out to be too clumsy and outdated for rapidly developing and rapidly changing commercial enterprises. The main bottlenecks of the Soviet tariff schedule there was an opaque internal logic, a rigid hierarchical structure. Often, when using a salary scale, it was necessary to formally name the position, for example, “engineer of such and such category,” only in order to set the appropriate salary. The grading system solves this problem. It allows you to flexibly build a chart of job levels, taking into account not only qualifications and experience, but also other equally significant factors, such as the level of managerial and financial responsibility, the complexity of decisions made, and others. Thus, in the grading system, each position finds its place in the “table of ranks” and receives a corresponding rating in the form of a salary bracket. A highly qualified expert who “closes” a critical area of a business process may have a higher grade than the head of a department in a non-core area of the company’s activities. This provides employees with not only managerial, but also professional career, which is certainly important for those who work in large and medium-sized businesses.
At the same time, the experience of implementing a grading system in Russian companies has shown that weak sides this system. Grading is a rather cumbersome and time-consuming procedure, and also requires the involvement of external consultants. Grading carried out in-house often suffers from subjectivity: not so much positions are assessed as the people who occupy them, when each manager tries to “knock out” higher grades for himself and his department.
Grading goals (why do companies introduce job grading? This is done to):
· establish the objective value of each employee for the company;
· increase transparency of career prospects for employees;
· increase the efficiency of using the wage fund from 10 to 50%;
· qualitatively evaluate current staff;
· attract the attention of potential candidates on the labor market.
Grading allows you to systematize all positions in the company, set upper and lower limits of wages for each level (grade) and create a tool for calculating salaries. After grading, each employee can see the connection between their work and the company’s income.
The first step in grading (the first task) is to compare positions according to given parameters, or, in other words, in one coordinate system, and rank jobs according to their importance for the organization.
In proportion to the points received, you can determine the size of the basic remuneration for each position, starting from the position with the minimum weight or the work that is most significant or widespread for the organization (marker or reference position). To do this, we must turn to the market: how is our “minimum” or standard position paid there? Having found this out, you can proportionally calculate salaries for other employees.
There may or may not be clear boundaries between scales. This is not so much a mathematical as an organizational problem: after all, it is often necessary to solve the problem of increasing the prestige of a certain employee in the organization or choose “horizontal” promotion within a grade - i.e. salary increase. In addition, it is precisely the crossing boundaries of grades that make it possible to implement the so-called horizontal career: an employee can be moved to another grade (promoted) without increasing salary.
The second problem that the grading method solves is tariffing (determining salary amounts) based on the significance of a particular job or position for the organization. It allows you to pay not only the market value of the employee, but also the value of his work for the company. We must not forget that tariff setting is both a career tool and a way of planning costs and the number of personnel of a company.
Since grades combine positions that are similar in content and different in hierarchical level, this makes it possible to “link” different levels of additional material and non-material (non-monetary) incentives to different grades, for example, differences in the volume and content of social packages, benefits for different categories of employees and etc.
The third problem solved by grading is motivation. For workers this will be career motivation, for job candidates it will be motivation to attract
Grading technologies are different, but have some common features.
Distribution of positions by importance for the organization.
Definition of grades.
Assignment of certain salary amounts to positions - tariffs.
Study of the market level of wages.
Analysis and correction of inconsistencies.
The essence of grading is to compare the internal significance of positions for the organization (internal value) with their significance in the market (external value). Therefore, grading begins with researching positions within the organization. The goal is to rank positions according to importance for the company. To do this, two types of procedures are used - analytical and non-analytical:
Expert assessment, classification or paired comparison method, within which positions are ranked “entirely”, without breaking down into component parts (non-analytical methods);
Comparison of “weights” of positions: jobs are evaluated “in parts” (compensated factors) within the framework of special procedures: scoring, factor method, etc. (analytical methods).
The non-analytical approach is ideographic - the data obtained with its help is incomparable, and the ranking scale is ordinal: the distance between positions cannot be expressed in numerical form.
The most objective and accurate analytical approach. It is more labor-intensive and requires special qualifications of developers, a large amount of data and significant costs time to set up the tool
1.2 Development of a system of individual salaries for enterprise personnel based on grading
Today, the grade system is the best and only justified system for calculating official salaries based on the point-factor method and matrix-mathematical models. The author of this technique is the American scientist Edward Hay. Therefore, it is often jokingly called “Hay’s salary meter.”
The growing popularity and demand for grading methods is due to the fact that they have stood the test of time.
First, let's define what is what. Grading (from the English grading) - classification, sorting, ordering. Grading is the positioning of positions, that is, their distribution in the hierarchical structure of an enterprise in accordance with the value of a given position for the enterprise.
It is very difficult to find such a universal method of remuneration that would take into account the interests of both the employer and the employee. The company always tries to pay taking into account its goals, but just enough so that the employee does not leave, and the latter, in turn, strives to receive as much as possible. It is the system of grades that allows you to “link” wages and business logic, as well as untie the knot of problems associated with staff motivation.
Today, the following grade systems and their modifications are being introduced into practice depending on the degree of complexity.
The first degree of complexity is a system for ranking positions by degree of complexity. It does not require mathematical calculations and can be implemented by the company's top managers after their preliminary training. It has nothing in common with the original version of the grade system. But some consultants are introducing it en masse at Russian and Ukrainian small and medium-sized businesses.
The second degree of complexity is the Edward Hay system, which is truly based on point-factor methods. But this is not an original option, but a system of grades that American consulting companies modified for the CIS market. We will present its version (with some simplifications to make it easier to understand) later in this publication. Approximately this option can be implemented in companies with a small staff.
The third and fourth degrees of complexity are real original grading systems, which, despite their copyright protection, have found their way into the markets of Russia and Ukraine. These systems are based not only on the point-factor method, but also on correct, complex mathematical calculations of weight, pitch, matrices, profile guide tables, graphs, and most importantly - on accurate and consistent adherence to the stages of the methodology.
These methods are very labor intensive. Their implementation stretches over a period of 6 months to one year and is accompanied by a large amount of paperwork and accompanying recommendations. Therefore, here you cannot do without an external consultant.
The introduction of this remuneration system makes the enterprise competitive internally and foreign markets, since the company’s “transparency” for investors increases and, accordingly, capitalization increases.
In addition, by introducing a grading system, an enterprise can position itself as a serious player in the global labor market and attract top managers, as well as highly qualified specialists from all over the world, to work or cooperate.
The grading system evaluates all types of jobs, making it an extremely valuable tool in shaping pay structures. The criterion for evaluating positions is the level of influence of the position on the company as a whole and the type of impact on the final result.
Many compensation specialists may have the impression that grading is an analogue of the tariff system. Undoubtedly, there are similarities. After all, both the salary scale and grades represent a hierarchical structure of positions, where salaries are arranged on an increasing basis. But there are also significant differences (Table 1).
Table 1.1. Differences between the tariff system and grades
Tariff systems Grade systems 1. Built on the basis of an assessment of professional knowledge, skills and work experience 1. Provides a wider range of criteria, including such indicators for assessing a position as: - management; - communications; - responsibility; - complexity of the work; - independence; - cost of error and others 2. Positions are built on an incremental basis 2. Grading allows the intersection of parts of two nearby grades. As a result of this, a worker or foreman of a lower grade, due to his professionalism, may have a higher salary than, for example, a labor protection specialist who is in a nearby higher grade. 3. The hierarchical structure of the wage scale is based on the minimum salary multiplied by coefficients (inter-category, inter-industry, inter-position and inter-qualification) 3. The structure of grades is based only on the weight of the position, which is calculated in points 4. All positions are arranged according to a strict vertical progression (from worker to manager) 4. Positions are placed only on the basis of importance to the company So, for example, in an enterprise that is engaged in intellectual developments, after the managers there will be a grade of IT personnel as the main earners and profit-makers, and only then will the grade of employees (lawyers, managers, etc.) be placed. For which enterprises is the grading system suitable? First of all, this system is convenient for large and medium-sized enterprises, since, unlike vertical career building, it allows you to build a career horizontally, within your level. For example, increasing workers' qualifications and education will affect the level of pay, since the weight of the knowledge factor will increase, and wages will increase, despite the fact that the worker will remain in his position. In addition, in large enterprises there are a large number of positions, which creates many problems. Therefore, in previously used salary determination systems, positions had to be formally named in order to somehow place them in a hierarchical vertical. The grading system solves this problem. 1.3 Development and implementation of a grading system The development of a grading system includes the following stages. ) Preparation for assessment, selection of factors. Establishing the circle of employees who will be directly involved in the development of the system. To avoid evaluating positions using a point system, based on the premise of “just being a person,” the optimal ratio is five employees of the enterprise and two external consultants. Using the expert assessment method, key factors are selected and ranked according to the degree of importance and significance for the organization (table). Table.1.2. Key factors and their weight
) Describe factors by impact levels and adjust for differences between levels within each factor. The following table describes one of the factors, such as level of responsibility. Table. 1.3. Responsibility factor
Level of responsibility Responsibility only for your own work, there is no responsibility for the financial result of your activities. Responsibility for the financial results of individual actions under the control of the immediate supervisor. Responsibility for financial results regular actions within the framework of functional responsibilities. Developing decisions that affect the financial results of a group or division, coordinating decisions with the manager. Full responsibility for the financial results of the department, for material assets, organizational expenses within the budget of the department. Full responsibility for the financial and other results of an entire area of work (group of divisions). ) Development of a point-factor scale. The maximum score for the assessment is 500 points. In order to determine the maximum number of points for each factor, 500 points are multiplied by the weight of this factor and divided by 100%. Next, the interval is set on the level scale. All calculations obtained are entered into the score-factor matrix (following table). Table.1.4. Point-factor matrix for determining grades
Maximum score Points by level Level of responsibility Tensions and conditions Contribution to achievements Knowledge and skills Required Education Number of subordinates ) Based on the selected evaluation factors and determining their weight, all positions in the company are evaluated. Job evaluations are carried out jointly with experts using previously prepared documents: description of the organizational structure with breakdown of positions; description of the score-factor matrix by levels. The scores obtained for various factors are summed up, and on this basis the final result of the position assessment is obtained. Table.1.5. Results of the assessment of the position “Metrology engineer”
Level of responsibility Tension and working conditions Contribution to achieving organizational goals Knowledge and skills Required Education Number of subordinates The following table is compiled for each position. Next, a generalized table is compiled for all positions. Table. 1.6. Evaluation results for all positions
Job title Score by factor Sum of points Director Referent Chief Accountant Accountant Metrology engineer Head of the Marketing Department Operator The result of this assessment is the alignment of all positions in the hierarchy from a maximum score of 500 to a minimum of 54 points. ) The number of grades in a company is determined by dividing the maximum number of points by the minimum, in our case the result will be 9 grades. The same grade includes positions that are close and equal in significance and value of contribution to the organization based on the conducted point-factor assessment. ) The establishment of ranges of official salaries included in each grade is carried out using intervals of ratio coefficients (a coefficient of 30% was used). Intervals (ranges) of pay ratio coefficient values reflect individual differences in the labor contribution of an employee of each qualification group, i.e. rules for determining the quantitative values of coefficients for qualification groups. The flexibility of coefficients within the range established for a specific grade creates additional opportunities for construction career growth workers under conditions of limited opportunities for job advancement in the organization. Let's form the coefficients of ratios and grades in the table. Table. 1.7. Ratio coefficients
Number of points Range width ) Next, the intervals of coefficients are transferred to the “fork” of official salaries by multiplying the minimum and maximum coefficients in the “fork” by the minimum wage established at the enterprise of 12.5 thousand rubles. The result is a “fork” of official salaries in the table. Table. 1.8. Salary matrix, rub.
Minimum salary Average salary Maximum salary When establishing a salary range for each grade, enterprises often focus on market wage values. A variety of approaches are used: the lower value of the official salary is at the level of the average market value, the upper value exceeds it, for example by 30%; the average official salary is at the level of the average market value, the maximum exceeds it by 15-30%, the minimum is below the average by 15-30%, etc. Indeed, in order to develop a competitive compensation policy, it is necessary to take into account the market values of wages and official salaries of specialists in the relevant professional groups. But ensuring objective inter-office salary ratios is no less important. Focusing only on market wage values can lead to a violation of internal fairness when setting official salaries. In this case, the value of the position will be determined solely by the labor market conditions without taking into account the internal needs of the enterprise, its specifics, which can lead to workers feeling unfair in wages with all possible consequences. In fact, in order to prevent an increase in the wage fund, it is necessary to review all stages of the formation of the matrix several times so that the wages of workers correspond to the market average and do not lead to an increase in the wage fund. The salary ranges of the previous grade intersect with the salary ranges of the subsequent grade, i.e. the salary of a specialist with a high level of professionalism may be higher than the salary of a manager with little experience in this position. This method of constructing a tariff system is a good tool for retaining specialists in the organization. Employees have an incentive to develop in their profession in their position, specialization increases, and employees’ knowledge becomes narrower, but deeper. An increase in salary within one grade can be associated with the professional growth of an employee, which will be determined based on the results of an annual or semi-annual assessment of the employee’s competencies, subject to his performance. In this case, competencies are developed and the required level of their expression is established for different salary categories within the same grade. Practitioners of this system propose to review the size of official salaries according to the proposed system once a year in order to timely adjust the size of salaries in accordance with changes in the market situation. Grading is a way to optimize the allocation of organizational resources. It allows you to link the system of bonuses and distribution of social benefits; helps to calculate the correspondence of salary expectations to the dynamics of the labor market; allows you to streamline wages (the principle of internal justice underlying the system allows you to avoid dispersion of wages within the organization); increases manageability (because each employee begins to understand that his income directly depends on the assessment of his position); increases the company's transparency for investors (due to standardization of the management system) and, accordingly, increases its capitalization (value). Grading is the positioning of positions, their distribution in the hierarchical structure of the organization in accordance with the value of a given position for the enterprise and with the size and salary structure determined for each group. However, the use of a grading system not only helps to optimize the wage fund for employees, but also requires resources to maintain. The main problem of the organization is to assess the relationship between the cost of implementation and the expected financial return. 2. Analysis of the remuneration system
PKF Stroymontazh LLC is an independent business entity with the rights of a legal entity. Full name of the enterprise: Limited Liability Company "Proizvodstvenno" commercial firm Stroymontazh" PKF Stroymontazh LLC is located at Chelyabinsk, st. Stalevarov, 5. The organizational and legal form of the enterprise is a company with limited liability. Firms formed on the basis of a limited liability company are industrial and other commercial organizations created by agreement legal entities and citizens by combining their contributions in order to implement economic activity and generating income. Such societies are legal Participants in a limited liability company bear financial liability to the extent of their contributions. The company has a corporate name, which indicates the type and subject of its activities. Companies can enter into contracts on their own behalf, acquire property and personal non-property rights and bear obligations, be plaintiffs and defendants in arbitration, court, and arbitration tribunal. A society may consist of two or more participants. These may include enterprises, institutions, organizations, government bodies, as well as citizens. The company can create branches operating as its separate divisions and open representative offices in Russia. At the same time, branches and representative offices do not enjoy the status of a legal entity. At the same time, a company may have subsidiaries and dependent economic structures with the rights of a legal entity. Limited Liability Company "PKF Stroymontazh" is an independent economic entity with the rights of a legal entity. PKF Stroymontazh LLC carries out the purchase, movement, storage and sale of goods, provision of services, as well as other types of business activities not prohibited by law and provided for by its charter. The main areas of activity of the company: construction and installation of gas pipelines, water pipelines, sewerage from polyethylene and steel pipes. Welding services for polyethylene pipelines. To carry out its main function, PKF Stroymontazh LLC performs many additional functions, such as: Concluding contracts for the supply of goods; Organizing the promotion of goods from manufacturers to places of consumption; Studying customer demand; Ensuring storage of goods; Formation of a trade assortment. The company has at its disposal office premises, a sales area, warehouses and a vehicle fleet consisting of 3 medium-duty vehicles. The organizational structure of an enterprise can be depicted in the form of a diagram (Figure 1). Figure 1 - Organizational structure of PKF Stroymontazh LLC The structure of the enterprise PKF Stroymontazh LLC is functional. The functional structure has developed as an inevitable result of the management process. The peculiarity of the functional structure is that although unity of command is maintained, special divisions are formed for individual management functions, whose employees have knowledge and skills in this area of management. The traditional functional blocks of the company are the production, marketing, and finance departments. These are the broad areas of activity, or functions, that every firm has to ensure that its goals are achieved. If the size of the entire company or a given department is large, then the main functional departments can in turn be subdivided into smaller functional units. They are called secondary, or derivatives. The main idea here is to maximize the benefits of specialization and avoid overloading management The advantages of a functional structure include the fact that it stimulates business and professional specialization, reduces duplication of effort and consumption of material resources in functional areas, and improves coordination of activities Labor and wage accounting rightfully occupies one of the central places in the entire accounting system of an enterprise. The methodology for analyzing the remuneration system is largely unique for each organization and depends mainly on the goals set. Any enterprise has only its own set of indicators for assessing business productivity, but at the same time we can talk about several groups of indicators that are typical, common to most companies and form the basis for analyzing the remuneration system. Let's consider the composition and structure of the enterprise's personnel (Table 1). Table 2.1. Composition and personnel structure of PKF Stroymontazh LLC
Index Managers Specialists 1. Enterprise personnel 2. Personnel structure by gender 3. Age composition of personnel 4. Distribution of personnel by length of service more than 5 years 5. Educational level Secondary specialized Unfinished higher education Thus, from Table 1 it can be seen that a total of 81 people work for the enterprise, with 12 people (14.81%) occupying management positions, 17 people (20.99%) - specialists, 52 people (64.20%) - workers . At the same time, there are 19 women in the enterprise, 62 men (Figure 2). A large proportion of managers are men (10 people), workers are also mostly men (48 people), but specialists at the enterprise are mostly women (13 out of 17 people). Figure 2 - Personnel structure by gender The organization employs mainly young professionals. The main age of the company's personnel is 37-50 years old (37% or 30 people), 32% of employees are aged from 26 to 36 years, 25% are aged from 18 to 25 years, and only 6% of personnel are over 50 years old (Figure 3) . Figure 3 - Age composition of personnel From Figure 6 it can be seen that 31% of employees have been working for the company for more than 5 years, 27% have been working for the company from 3 to 5 years, 28% from 1 to 3 years and 14% have work experience of less than one year Figure 4 - Distribution of personnel by length of service From Figure 4 it can be seen that 47% of employees have higher education, 16% have incomplete higher education and 37% have secondary vocational education. This indicates the high qualifications of the organization’s personnel. Figure 5 - Educational level Let's imagine the staffing table of the enterprise's employees (Table 2.2). Table 2.2. Staffing table PKF Stroymontazh LLC
Job title Number of employees Salary, rub. CEO Chief Accountant Production Director HR Director Commercial Director Financial Director Head of Transportation and Storage Department Head of Sales Department Head of Procurement Department Head of the Marketing Department Accountant HR Manager Sales Manager Purchasing Manager Marketing Manager Economist Foreman Installer Delivery driver Warehouse Manager Secretary Junior service personnel Table 2 shows that the general director of the enterprise receives a salary of 53.6 thousand rubles. per month. First-level managers have a salary of 40.2 thousand rubles. per month. Second-level managers have a salary of 29.48 thousand rubles. per month. The company's specialists have a salary from 20.1 to 24.12 thousand rubles. per month. Workers of the enterprise have a salary from 12.06 to 18.76 thousand rubles. per month. Thus, the company uses a simple time-based wage system. The disadvantage of the time-based form of remuneration is that the official salary or tariff rate is not able to take into account differences in the amount of work performed by employees of the same profession and qualifications. Such differences are due to different levels of labor productivity. Let's consider the level of wages of various categories of workers (Table 2.3). Table 2.3. Salary level by category of employees of PKF Stroymontazh LLC
As can be seen from Table 3 wage management personnel differs significantly from the wages of specialists (by 11.42 thousand rubles) and workers (by 18.85 thousand rubles). 3. Development of a base salary system for the enterprise .1 Application of the grading system using the example of PKF Stroymontazh
In order to ensure uniform principles for organizing remuneration and standardization of labor for employees of the enterprise's divisions, a regulation on remuneration and standardization of labor for employees of PKF Stroymontazh LLC was developed. The main components of remuneration according to the regulation are: regulatory documents: labor cost standards, instructions on the workplace and labor protection, job descriptions, regulations on departments, etc.; a tariff system that determines the differentiation of pay depending on the complexity of the work, the qualifications of the employee, and working conditions in the workplace; additional payments and bonuses of an incentive nature, linking the amount of remuneration of an employee with personal business qualities; additional payments and allowances of a compensatory nature, guaranteeing the employee payment in the amounts provided for by law; one-time bonuses and remunerations used for the purpose of material interest of the employee. To fulfill production tasks, PKF Stroymontazh LLC has the following remuneration systems: time-based - bonus and salary - bonus wages; piecework - bonus wages and individual wages. Employees' wages consist of two parts: constant and variable. The permanent part includes wages calculated on the basis of the base salary, bonuses and additional payments paid under the law. The variable part consists of various bonuses for the quality of work and the effectiveness of individual indicators, bonuses based on the results of the department’s work, bonuses for personal participation in projects. The grading system is convenient for large and medium-sized companies, since, unlike vertical career building, it allows you to build a career horizontally, for example, increasing workers' qualifications will affect the level of payment, since the weight of the knowledge factor will increase, and the salary will increase, although the employee will remain in his position . Grading pursues following goals: reduction of personnel costs, optimization of payroll; a transparent and understandable relationship between the employee’s income level and the value of the position for the company among all positions; easy determination of pay levels for new positions; the employee has an idea of possible changes in his income under various career development options; increases the level of staff motivation and promotes their retention; increases manageability, as each employee begins to understand that his income directly depends on the assessment of his position; increases the company's transparency for investors. Achieving these goals forms an effective system of management, motivation and remuneration of personnel at the enterprise. Grading principles: economic feasibility, clarity and transparency, fairness, homogeneity. The grading process diagram includes the following steps Job descriptions. Positions are described through job analysis methods such as interviewing, questioning, and observation. Based on the results of the job analysis, a description of positions is carried out, which may contain the following data: general information (job title, date of compilation of the description, name of the structural unit; name of the manager, etc.); standards of performance of duties and working conditions; personal qualities, character traits, skills and level of education, etc. Determining the value of positions. To do this, in practice, two types of procedures for determining the value of a position are used, given in Appendix 1. Construction of grades. Depending on the number of points scored (using the factor-score method) or established ranks (using non-analytical methods), positions can be arranged hierarchically. After this, they need to be combined into grades. A grade is a range of points or ranks of positions in which they are considered equal and of equal value to the company and have the same pay range. Grades are formed in a variety of ways. When using non-analytical methods, grades are formed based on the ranks established for positions. The ranks are divided into ranges based on the subjective understanding of managers and specialists and acceptable for a particular company. When using the factor-score method, the main task that must be solved to combine positions into grades is to determine the ranges of points in each grade. At this stage, it is important to determine the boundaries of the grades, so approximately equal steps are taken to mark the boundaries between grades. For convenience, larger categories of personnel are also being introduced, including several grades. For example, employees (occupying grades 10 to 6), highly qualified employees (grade 7-9), managers (grade 3-5), top managers (grade 1-2) Establishment of interqualification ratios (official salaries) for each grade. When establishing a salary range for each grade, enterprises are guided by market (external) salary values and internal factors (the value of the relevant positions, the financial capabilities of the company, etc.). A variety of approaches are used: the lower value of the official salary should be at the level of the market average, the upper value should exceed it, for example by 30%; The average official salary should be at the level of the average market value, the maximum should exceed it by 15-30%, and the minimum should be below the average by 15-30%. Ranges can be formed in two ways: establish a range of official salaries for each grade; determine intervals of interqualification ratios (coefficients). These coefficients show how many times the official salaries of the corresponding grade are greater than the minimum wage established at the enterprise. The established intervals of coefficients are translated into the “fork” of official salaries by multiplying the minimum and maximum coefficients in the “fork” by the minimum wage established at the enterprise. An example of constructing coefficients of interqualification relationships is discussed in Table 3. Table 3.1. An example of constructing interqualification relationships
Average value in the range, Ksavg. Absolute growth, Ksred Relative growth, Ksav., % Range width Range overlap The final procedure of this stage is a comparison of the actual official salaries of the company’s employees with the “forks” of official salaries established for the corresponding grade. Based on the comparison, it is necessary to adjust official salaries: raise them for those positions whose salaries are lower than those provided for by the “fork”. As for salaries above the upper limit of the “fork”, they should in no case be reduced. These positions should also be revalued or temporary increases introduced. Gradually, salaries should level out as the minimum official salary increases. Introduction of a grading system. At this stage, it is important to inform the company’s employees about changes in official salaries. The implementation of the grading system is carried out according to the Deming cycle, which includes planning, testing, making adjustments and implementation. The result of grading should be a rating of positions at the enterprise, which can be used to streamline base salaries, distribute social packages, draw up personnel development plans, and more. The rating can be presented in a standard format that describes all positions within the enterprise. The format should include: the name of the position, its linear affiliation, indicators on work evaluation scales, an integral indicator of the value of the work, grade number, requirements for standards of labor behavior, salary range, possible benefits. The Department of Labor Organization and Wages (hereinafter referred to as UOTiZ) is a structural division of PKF Stroymontazh LLC. The following are directly subordinate to the head of OSH: the department of labor organization and wages (hereinafter - OLOiZ) and the department of labor standardization (hereinafter - ONT). The OTP is assigned the following tasks: improving the organization and regulation of labor in the company’s structural divisions; organizing payment and incentives for workers; accounting for the use of working time. Thus, OSH has all the necessary powers and has sufficient information to develop and implement a wage system based on grades at PKF Stroymontazh LLC. The entire process for this work was divided into stages: Preparatory; Conducting assessments of positions and professions; Determination of grades of positions and professions based on assessments; Establishment tariff rates for each grade of workers and salary ranges for grades of specialists and managers; formalization of the grading system at the enterprise. The main feature in the development of the grading system for PKF Stroymontazh LLC was the establishment of occupational grades separately for each structural unit of the enterprise. This is due to their fragmentation geographically, in terms of work performed and services provided. For each stage, the following scope of work is allocated, indicating the period for their implementation, shown in Table 3.2. Table 3.2. Structure of the grading process at PKF Stroymontazh LLC
Stage name Scope of work 1 Preparatory 2Description of positions and professions Developing questions to evaluate employees Describing and systematizing the information received 3 Conducting assessments of positions and professions Identification of the most significant factors for assessment Description of assessment levels for each factor Determination for each category of factors relevant to it Filling out the position assessment sheet by columns 4Definition of grades Assigning weight to each assessment factor Determining a grade point for each position and profession Establishing a grade 5 Establishing tariff rates for employees and salary ranges for specialists and managers Analysis of wages (internal and external trend) Establishment of tariff rates and salaries Adjustment of assessment Development of a procedure for establishing tariff rates and salaries for transfers and hiring of positions and professions 6 Formalization of the wage system based on grades in the company Preparation and issuance of an order to introduce a new remuneration system and the development of a new regulation on the system of remuneration and labor standards Transfer of employees to new salaries and tariffs Adjustment of employee remuneration TOTAL for the entire process, weeks Preparatory stage. The transition to a new wage system leads to changes in the wage fund, its size and structure. OOTiZ determined that the transition to a new wage system will lead to an increase in the wage fund by an average of 8 to 15 percent. Afterwards, a list of all positions and professions is compiled based on the current staffing table of PKF Stroymontazh LLC. This type of personnel such as top managers are included in the grade system; for the category of specialists, the difference in remuneration will be taken into account when setting the salary within the range of the grade. As for the categories of workers, the grade of the profession will be established taking into account the category in this profession. Conducting job descriptions and professions. All necessary information is taken from the regulations for departments, departments and divisions, as well as job descriptions employees of the enterprise. For each position and profession, the following information is collected: general information (job title, date of compilation of the description, name of the structural unit; name of the manager, etc.); duties, responsibilities and powers; relationships with other employees and external organizations; standards of performance of duties and working conditions. Conducting assessments of job positions and professions. Positions are evaluated using an approach based on the content of the position, i.e. positions are evaluated based on their value to the enterprise. To assess the position, OTP chose from among many factors the most significant for PKF Stroymontazh LLC: The cost of error; Working conditions; The need to search for non-standard approaches; The need to work with complex equipment; The volume of information collected and processed; The need to update knowledge; Intensity of internal interaction; Intensity of external interaction; Independence in decision making; Number of subordinates. OSH specialists carry out a preliminary assessment of the company’s positions and professions in the following order: Positions are assessed on a scale, i.e. The position assessment sheet is filled out in columns; a sample sheet is presented in accordance with Table 4. Each item is assessed according to the level described for each factor. All employees of PKF Stroymontazh LLC are divided into three categories - managers, specialists and workers. The relationship between the category of personnel and the factors related to it is shown in Table 3.3. Table 3.3. Position rating scale
Managers (middle and line managers) Specialists Impact on the result The price of a mistake Working conditions Information handling and interaction Control Number of subordinates The assessed position is compared with already assessed positions on the factor under consideration; A sheet with preliminary assessments of positions is transferred to the head of the department for expert assessment; The position assessment sheet with the expert assessment of the head of the department is transferred to the position assessment committee (hereinafter referred to as the COP). The KOP includes chief specialists and heads of departments in all areas of activity. The assessment is carried out without the participation of employees occupying these positions. In order to ensure greater accuracy in assessing positions, OSH and KOP specialists have the right to invite experts. When assessing the positions of middle managers, the expert is the head of the department. When assessing the positions of line managers, specialists, workers, the expert is the head of the unit or the employee to whom the head of the unit has delegated his authority (head of department, head of the workshop). Determining job grades and professions based on position assessments includes a number of steps: Each assessment factor is assigned a weight that determines its importance relative to other factors in accordance with Table 6. Table 3.4. Weights of position evaluation factors
Factor name Weights of position evaluation factors, % Middle managers Line managers Specialists The price of a mistake Working conditions The need to search for non-standard approaches The need to work with complex equipment Volume of information collected and processed The need to update knowledge Intensity of internal interaction Intensity of external interaction Autonomous decision making Number of subordinates For each position, a grade score is determined as the sum of ratings for factors, taking into account the weighting coefficient of each factor. The range of grade point values is determined in accordance with Table 3.5. Table 3.5. Table of correspondence of grade points to the grade of position and profession
Number of grade of position and profession Range of grade point values Middle and line managers Specialists Determination of grade for different categories of workers. The job grade of managers and specialists is determined in accordance with formula 1: GradeRiS = ∑(position rating on a scale 1* weight 1+ position rating on a scale 2* weight 2 + ... + position rating on a scale N*weight N) (1) The grade of workers' positions is determined in accordance with the formula: GradeRAB = ∑(profession rating on a scale 1 * weight 1 + profession rating on a scale 2 * weight 2 + … + profession rating on a scale N * weight N) + rank (2) Establishing tariff rates for workers and salary ranges for managers and specialists depending on the grade they occupy. Hourly wage rates for workers were determined depending on the length of the working week. The level of payment for managers, specialists and employees depends on the level of their competence. Differentiation of remuneration for employees within the salary bracket of a grade is carried out in accordance with the procedure for establishing salaries: three levels within the salary scale for specialists and employees; five steps within the salary range from grades 4 to 15 for managers (line managers and middle managers); nine steps within the salary range from grade 16 for managers (top managers and middle managers). Newly hired employees are assigned the first (minimum) salary level within the salary range of the corresponding grade. In case of permanent (temporary) transfer to another position, the employee is set the first (minimum) salary level within the salary range of the grade according to new position. When transferred within a department to a new position due to career growth, the employee is given a salary of a new grade one step higher than the current salary. Employees of the personnel movement and development department must make appropriate salary changes to the employee’s employment contract in the form of an agreement to the employment contract. Formalization of the grading system at the enterprise. The introduction of a grading system entails changes in personnel documents. In this case, there is a change in organizational working conditions. The employer is obliged to notify the employee in writing no later than two months in advance of a change in salary or tariff rate. In addition to the organizational formalities of the grading system in the organization’s documents, it is necessary to introduce the system into the consciousness of the staff, show all its advantages and teach department heads to work in this system. The introduction of a grading system at PKF Stroymontazh LLC should occur through the creation of a new remuneration system in the company, which should include: order to introduce a grading system; regulations on the payment system and standardization of labor for workers based on grades; the procedure for introducing a new position into the staffing table; procedure for evaluation/revaluation of positions; activities to update the grading system Practice shows that a grade-based remuneration system has the following advantages: helps manage the wage fund and makes the payroll system flexible; allows you to quickly analyze the structure of the wage fund, official salaries and track their dynamics; a convenient tool for determining the base salary of a new position; allows you to track levels and departments where there are discrepancies in salary calculations; solves the problem of charging additional payments for work performed to standards that are below or above official standards; allows you to determine how much a position at any level costs a company; is effective way integration of various divisions of the company into a single structure; optimizes the allocation of labor resources The grading system increases the transparency of career prospects for employees and helps attract the attention of potential candidates in the labor market. There are two options for how a worker can increase his tariff: due to a change in qualifications, when improving your qualifications and receiving a higher rank or changing your profession to a more significant one for a company with a grade higher than the previous one; by changing working conditions when they become more dangerous. For specialists, there are also options to increase their salary: due to a change in grade, when moving to another position that belongs to a higher grade, involves more complex work or with harmful conditions; by increasing the level within the grade, if the specialist has no disciplinary sanctions and has worked for at least 3 years. Thus, employees confirm their grade with their results, it becomes possible to have a flexible approach to job evaluation in accordance with the importance of the workplace for the company, and the composition of the team is stabilized. The organization does not stand still, it develops, and previously established priorities can be changed. These changes should be reflected in the composition and number of labor assessment factors. To keep the developed grade-based remuneration system up to date, a regular “upgrade” of the system is required. To begin with, determine the frequency of monitoring; usually the adequacy of the system is checked once a year: on the one hand, this allows important changes both within the company and in the labor market not to get out of control, on the other hand, such a frequency will not allow it to be changed beyond recognition . Adjustments can be either soft or hard. Soft changes in the grading system include changes in the weights of compensated factors. For example, previously it was important to focus on such a factor as “labor content,” but after a certain unification of activities, the emphasis may shift, for example, to “work experience.” Hard methods of adjusting the system usually include changing the quantity or content of the factors themselves, or the scale of severity of an individual factor. In this case, it is necessary to re-evaluate all positions and professions based on new factors. This is almost a complete overhaul of the system. Situations arise when there is no need to revise the grading model as a whole. For example: it is necessary to review the classification of a separate position or determine the place of a new position in the system. In this case, a procedure for adjusting grades and situations that can be considered a signal about the need to make changes to the grade system are determined. As a rule, the following events lead to adjustments to the model: The emergence of a new position, which must undergo the same assessment procedure as all positions and professions in the company and is assigned to one grade or another. Changes in the market value of individual specialists - which is associated with the opening of new competing companies in the region or mass layoffs of personnel, excess or shortage of university graduates, etc. It is better to do this by introducing bonuses, transferring employees to contracts, or revising the salary portion. You should keep a log of adjustments or record all deviations from the accepted methodology for constructing grades A well-built grading system has a long lifespan, but, as practice shows, it requires a complete revision every 2-3 years. For PKF Stroymontazh LLC, the introduction of a grade-based remuneration system will allow: optimize the wage fund and make this group of costs manageable; streamline wages and eliminate disparity in the distribution of the wage fund between departments; make a simple determination of the level of payment for new positions; increase the level of staff motivation and promote its retention; increase the transparency of career prospects for employees, which helps attract the attention of potential candidates in the labor market; tie in a system of bonuses and distribution of social benefits among employees; take into account the complexity and working conditions when setting the salary or tariff rate for employees. Just as any project contains risks, the process of developing and implementing a grading system in an organization carries the following risks for which management must be prepared: it requires high costs for development and implementation; the system needs to be constantly kept up to date; there is a danger of a subjective approach when developing and assessing grades; difficulty adapting to new system remuneration from staff Grading can significantly increase employee motivation. It is effective due to variable approaches to the use of motivators, i.e. the same motivational factor is used in different ways. Grading not only allows you to optimally evaluate a position and set salaries, but also determines the place of this position in the organizational structure of management, indicates its importance, and gives a clear direction for further advancement. Along with the above, grading has other advantages: allows you to optimize the wage fund, eliminate duplication of functions, remove unimportant positions from the staffing table, adjust salaries relative to the importance of positions, reduce the wage fund by up to 10%, without negative consequences for the company, because there is a more rational use of funds; contributes to the creation of internal fairness in the remuneration system, which is achieved by developing or adjusting the permanent part of the salary, taking into account the value of the position and its impact on the company’s performance; grading is a convenient tool that allows you to manage staff turnover. Reducing turnover, which can be one of the goals of grading, allows the company to save money on recruiting and training new employees. Many companies, on the contrary, when introducing a grading system, consciously go for the time The editorial staff has reported an increase in staff turnover, since grading provides a clear system for assessing and selecting personnel in accordance with the required competencies, and specialists who do not meet these requirements can be replaced. The grades also highlight strategically important positions for which staff stability is important, and minor positions for which frequent changes of employees do not affect the organization’s activities. This way, managers can manage their talent more efficiently. The main disadvantage of grading is the relatively high cost of implementing this system at an enterprise, as well as the difficulty of determining the expected financial return. At the same time, not only the initial costs of creating a grading system are high, but also the further costs of maintaining it. Introducing a grading scheme as a fad is inappropriate. Grading pays off, especially in large companies. In them, the personnel structure can be very unclear, and its optimization can lead to significant benefits in the future. In small companies, only a certain category of employees can be subject to grading, for whom the grading system, due to the specifics of their activities, will be most effective. In any case, the introduction of grades is a revolutionary change that requires significant costs, no matter how progressive it is. The organization must be internally prepared for such reforms, and management is convinced that grading will allow optimizing personnel costs 1. Vikhansky O.S. Strategic management. - M.: Unity, 2013. 2. Vikhansky O.S., Naumov A.I. Management: Textbook. - M.: “Gadariki”, 2013 Gribov V.D., Gruzinov V.P. Enterprise economy. - M.: Finance and Statistics, 2012. Ivanov I.N. Corporation management. - M.: Infra-M, 2013 Ivanova S.V. Motivation 100%: Where is his button? - M.: Alpina, 2014 Ivanovskaya L.V., Svistunov V.M. Providing a personnel management system. - M.: GAU, 2012. Ilyin E.P. Motivation and motives. - St. Petersburg: Peter, 2013 Kamushkin N.I. Fundamentals of management. - Minsk: New knowledge, 2012. Kashanina T.V. Corporate law - M.: NORMA-INFRA - 2013. Kibanov A.Ya., Zakharov D.K. Formation of a personnel management system. - M.: GAU, 2013. Knysh M.I., Puchkov V.V., Tyutikov Yu.P. Strategic management of corporations. - St. Petersburg: “KultInformPress”, 2010. D. Milkovich. Remuneration system and methods of personnel incentives. Ed. Top, 2009 Mazur I.I., Shapiro V.D., Olderogge N.G. and others. Corporate management. - M.: “Higher School”, 2012. Masyutin S.A. Mechanisms corporate governance. - M.: “Finstatinform”, 2013. Morozova Zh. A. Salary. Taxes. M.: NalogInform, 2009. Mintzberg G. Structure in the fist: creation effective organization/ Per. With. eng. Ed. Yu.N. Kapturevsky. - St. Petersburg: Peter, 2012 Podoprigora M.G. Organizational behavior: a textbook for senior and undergraduate students. - Taganrog: Publishing House TTI SFU, 2012 Rudenko V.I. Management. A guide to preparing for exams. Rostov n/a: Phoenix, 2013 Z.P. Rumyantseva, N.A. Sagomatin, R.Z. Akberdin et al., organization management: a textbook. M.: Unity - Dana, 2008 Frintsevich A.S. Adoption management decisions in the organization // Economic Bulletin. - 2013. - No. 2 (12) Frolov S.S. Sociology of organizations: Textbook. - M.: Gardariki, 2006 Staff motivation. Toolkit. - M.: Library of Personnel Technologies, 2013
2.1 General characteristics of the enterprise PKF Stroymontazh LLC
2.2 Analysis of the remuneration system using the example of the enterprise PKF Stroymontazh LLC
Conclusion
List of sources used
In modern educational and legal literature it is given following definition accounting:
Accounting is an orderly system for selecting, registering and summarizing information in monetary terms about the property, obligations of organizations and their movement through continuous, continuous and documentary accounting of all business transactions.
Thus, a modern accountant carries out extensive activities, including the reflection of business transactions on accounting accounts, planning and making management decisions, control and auditing, review, evaluation and analysis of the organization’s economic activities.
One of the main activities of the accounting department of any organization is the accounting of wages of the company's employees. This area of accounting work is one of the most labor-intensive and responsible, and rightfully occupies one of the central places in the entire accounting system of the enterprise.
This topic is relevant, because in the conditions of a market economic system, in accordance with changes in the economic and social development of the country, the policy in the field of remuneration changes significantly, social support and worker protection. Many functions of the state for the implementation of this policy are transferred directly to enterprises, which independently establish the forms, systems and amounts of remuneration and material incentives for its results.
One of the main factors influencing labor productivity, and therefore the result of economic activity as a whole, is wages.
The current labor legislation understands the term “wages” not just as the amount of wages established for the employee, but as the entire system of relations associated with ensuring that the employer establishes and makes payments to employees for their work in accordance with laws, other regulations, collective agreements, and agreements , local regulations and employment contracts (Article 129 of the Labor Code of the Russian Federation).
Wages are remuneration for work depending on the employee’s qualifications, complexity, quantity, quality and conditions of the work performed, as well as compensation and incentive payments.
The concept of “wages” has been filled with new content and covers all types of earnings (as well as various types of bonuses, additional payments, allowances and social benefits) accrued in cash and in kind (regardless of sources of financing), including amounts accrued to employees in accordance with legislation for unworked time ( annual leave, holidays and the like).
Market relations have given rise to new sources of cash income in the form of amounts accrued for payment on shares and member deposits labor collective to the property of the enterprise (dividends, interest).
Thus, the labor income of each employee is determined by his personal contribution, taking into account the final results of the enterprise, is regulated by taxes and is not limited to maximum amounts. The minimum wage for workers of all organizational and legal forms is established by law.
The statutory legal form of regulation of labor relations, including in the field of remuneration of workers, becomes the collective agreement of the enterprise, which fixes all conditions of remuneration that are within the competence of the enterprise.
The purpose of this work is to conduct research into the accounting of wage calculations at a specific facility, analyze the current systems and forms of remuneration, find out their shortcomings, and analyze the use of the wage fund.
To achieve this goal, the following tasks must be completed. First, determine the essence of wages. Secondly, consider the existing forms and systems of remuneration, the procedure for calculating certain types of wages and how these forms and systems are applied at the site being surveyed, consider the current bonus system. It is necessary to conduct an analysis of the costs at this facility, determine the funds that exist at the enterprise and from which remunerations for the labor of employees are paid. Thirdly, you should consider accounting for deductions and deductions from employees’ wages, as well as their reflection in the accounting accounts.
Accounting and analysis of remuneration rightfully occupies one of the central places in the entire accounting system of the enterprise.
this work performed using the example of the work of an Individual Entrepreneur "Levin".
1. Theoretical foundations for accounting for wages, forms and systems of wages
1.1 The essence and functions of wages
Remuneration is a system of relations related to ensuring that the employer establishes and makes payments to employees for their work in accordance with laws, other regulations, collective agreements and employment contracts.
In a market economy, enterprises are looking for new models of remuneration. Before constructing a mechanism for remuneration of labor in the new conditions, it is necessary to determine what wages are, because many economists and practitioners persistently argue that instead of the concept of “salary,” the concept of “labor income” should be used.
The most important thing is not to look for something new in terminology, but to more thoroughly identify the essence and properties of the economic category “salary” in changed conditions. The definition of wages as a share of the social product (total social product, national income, etc.) distributed according to labor among individual workers is contrary to the market.
Wages are distributed not only according to the quantity and quality of labor, but their sizes also depend on the actual labor contribution of the employee and on the final results of the enterprise’s economic activities.
The category in question can be defined as follows. Wages are the main part of the funds allocated for consumption, representing a share of income (net output), depending on the final results of the work of the team and distributed among workers in accordance with the quantity and quality of labor expended, the real labor contribution of each and the amount of invested capital.
In economic theory, there are two main concepts for determining the nature of wages:
a) wages are the price of labor. Its size and dynamics are formed under the influence of market factors and, first of all, supply and demand;
b) wages are the monetary expression of the value of the commodity “labor power” or “the transformed form of the value of the commodity labor power.” Its value is determined by production conditions and market factors - supply and demand, under the influence of which wages deviate from cost work force.
The cost of labor has qualitative and quantitative sides. A qualitative characteristic of the cost of labor power is that it expresses certain production relations, namely the sale to workers of their labor power and the purchase of it in order to increase profits. On the quantitative side, the value of labor power is determined by the cost of the means of subsistence necessary to produce, develop, maintain and perpetuate labor power.
In labor markets, sellers are workers of a certain qualification, specialty, and buyers are enterprises and firms. The price of labor is the basic guaranteed wage in the form of salaries, tariffs, forms of piecework and time-based payment. Demand and supply for labor are differentiated by its professional training, taking into account demand from its specific consumers and supply from its owners, that is, a market system is formed for its individual types.
The purchase and sale of labor occurs under labor contracts (agreements), which are the main documents regulating labor relations between the employer and the employee.
Exist following functions wages: distribution function, social function and stimulating (motivational) function.
A market economy eliminates the command system of distribution, which consists of a separation between the functions of production and distribution (enterprises create national wealth, the state distributes it). Distribution functions are transferred to the direct manufacturer or the private owner of the enterprise. Only the owner has the right to independently dispose of the means of production and the results of labor. The adoption of laws on property, entrepreneurship and others finally determined the fate of the previously centrally established wage formation mechanisms. In the new conditions, the decentralized form of distribution relations is focused on cost indicators, competition in the market and reflects the financial and market position of the enterprise.
With the transition to a market, wages become the main element of the reproduction of labor power and for the entrepreneur, employer of labor, the social function of labor begins to play a completely equal role along with the stimulating one. The employee’s budget must provide him with expenses not only for clothing and food, but also for the purchase of a house, apartment, payment for household services, and so on. There are two levels of ensuring the social orientation of wages. The first is regulated by the state. Its direct influence on the level of wages is expressed in the form of the establishment of a minimum guaranteed level of wages. The indirect impact is associated with the indexation of cost characteristics of the standard of living depending on inflation and rising prices. Thus, the state protects the employee’s labor income from the tendency of saving on labor costs, which is characteristic in some cases of a market economy. Second main level of implementation social function wages are paid directly at enterprises. If wages are considered from the point of view of the income required to ensure the normal reproduction of only the worker himself, then the most common would be the division of all personnel into groups according to the type and amount of social costs for the reproduction of their labor force. In general, wages should be differentiated according to the complexity of the work and the qualifications of the workers. If wages are considered as income necessary to ensure normal reproduction of not only the worker, but also his family, then the wage mechanism will be built taking into account the level of consumption in the worker’s family.
At the next stage, an analysis of forms and systems of remuneration is carried out. It needs to start with comparative characteristics forms and systems of remuneration designed to be the basis justification for the feasibility of their use . The analysis in this case is based on identifying the conditions that determine the use of piecework or time-based wages, based on taking into account the costs and results of labor, as well as the characteristics of equipment, technology, organization of production and labor, requirements for the quality of work, and the need to combine personal and collective interests.
Since the expediency of choosing forms and systems of remuneration follows from compliance with the conditions of their application, the prevalence various forms and wage systems is a consequence of the peculiarities of the organization of labor and production. It can be determined either by the amount of funds spent on wages for each system, or on the basis of the results of sociological research.
It is also necessary to identify the feasibility of using a non-tariff option for organizing wages. If a non-tariff wage system is used at an enterprise, then its analysis reveals, first of all, the validity of establishing qualification levels for employees. In addition, it is very important for non-tariff regulation to analyze the totality and degree of influence of indicators that reflect the contribution of a particular employee to the overall results of the team’s activities.
It is advisable to complete the analysis of forms and systems of remuneration assessment of bonus provisions, operating at the enterprise.
All bonus systems used must be cost-effective, that is, the results from implementing the event must exceed the costs, which is also considered an important aspect of the analysis.
The criterion for economic efficiency is compliance with the following inequalities:
E – P > 0 or > 1,
where E – the effect of introducing a bonus system;
P – the amount of the premium paid,
The effect can be expressed in different units, but when comparing it with costs, i.e. with a premium, the result must be expressed in monetary terms:
where U D, U B are respectively the achieved and basic levels of the bonus indicator in units of measurement of the bonus indicator;
C i – effect terms;
n – number of effect terms.
The absolute (U D - U B) or relative change in the bonus indicator is adjusted in order to obtain monetary value the resulting effect. With an absolute change in the bonus indicator - by the amount of effect per unit of bonus indicator - with a relative change - by the total effect obtained during the implementation of the bonus system -
When assessing the effectiveness of the bonus system, it is necessary to take into account that the amount of the bonus in relation to the basic salary should not be less than 10%, which is considered as threshold of psychological sensitivity. It is believed that otherwise the bonus will not be perceived by the employee as a form of incentive. In addition, the amount of the bonus must be linked to the employee’s labor efforts necessary to achieve the appropriate level of fulfillment of the bonus indicator. It is also necessary to take into account factors that do not depend on the employee’s labor efforts, but affect the magnitude of the effect achieved.
Individual terms of payment and labor incentives are provided for in employment contracts(contracts) concluded with the employees of the enterprise, therefore it is necessary to analyze the compliance of the relationship of the employment agreement (contract) with the collective agreement of the enterprise, as well as compliance with the social security of the employee.
Completing all stages of analyzing the organization of wages allows you to get a real picture of its condition in the enterprise. For each aspect of the analysis, a more in-depth study can be carried out using the appropriate set of tools, which depends on the goal and the availability of initial information. Only with a comprehensive approach to conducting research will the results of the analysis have an effective impact on improving the organization of remuneration of workers, strengthening its stimulating effect, and increasing production efficiency and competitiveness of the enterprise.
The organization of remuneration for employees at VKM-Steel LLC is mainly carried out by two structural divisions: the Department of Labor Organization and Wages (OLOiZ) and the Personnel Department (HR), but neither of them solves motivational problems. OHS and QA report directly to the Director of Social Affairs, who in turn reports to the Managing Director.
The head of the HR department is entrusted with the following functions:
- - control over the organizational culture of the enterprise, that is, compliance with norms and values;
- - heading the work of staffing the enterprise with workers and employees of the required professions, specialties and qualifications;
- - familiarization of workers with necessary documents when hiring, with working conditions and remuneration;
- - concluding employment contracts and conducting interviews with employees who have submitted their resignation;
- - carrying out work to clarify and comply with the rules of internal labor legislation;
- - carrying out work on the selection, selection and placement of personnel based on an assessment of their qualifications, personal and business qualities;
- - conducting systematic analysis personnel work at the enterprise, development of proposals for its improvement.
VKM-Stal LLC has the Regulations “On remuneration and incentives for the labor of managers, specialists and employees; main workers and auxiliary workers" (for main and auxiliary workers, provisions are developed separately for each workshop). They were introduced in order to increase the motivation of workers to work, ensure material interest in improving the qualitative and quantitative results of work, fulfilling planned targets for the production of marketable products, reducing the cost of producing a unit of product (work, services), improving the quality of products, and making a profit.
Salary has been and remains one of the highest priority motivating factors. Let's consider how payment and incentives are paid to the personnel of the enterprise.
Remuneration for the labor of the main and auxiliary workshops is made according to the piece-rate bonus and piece-time wage system. The guarantee for wages is the minimum wage established in the Russian Federation.
The following remuneration systems are used at the VKM-Steel LLC enterprise: time-based - bonus and piece-rate - bonus.
The calculation of the basic salary (fixed part) of VKM-Steel LLC employees is carried out according to table 2.6.
Employees are remunerated from a single wage fund, depending on the quantity and quality of labor expended. Determined depending on the volume, complexity and degree of responsibility of the work performed, qualifications, the results of personal labor contribution and quality of work, as well as the results of the economic and financial activities of the enterprise.
The salaries of managers, specialists and employees include, in addition to the official salary, the following payments from the wage fund:
- - bonus according to the coefficient of quality attitude towards work;
- - bonus for achieving certain production indicators in accordance with the Regulations on bonuses.
Table 2.6 - Composition of the basic salary (constant part) of employees of VKM-Stal LLC
|
Type of payment |
Calculus method |
|
Piece workers - by type of work and profession |
Piece price multiplied by the volume of work performed (for the final suitable product accepted by the quality control department and delivered to the sales warehouse or other departments) |
|
Time workers - by qualification level and profession name |
Hourly rate multiplied by actual time worked |
|
Managers, specialists and employees (RSiS) - according to the amount of official salary according to the staffing table |
Salary multiplied by the coefficient of actual time worked |
The official salary is a guaranteed monetary remuneration for the employee for the performance of the official duties assigned to him and is established according to the tariff schedule, taking into account the complexity of the work, the qualifications of the employee, and the importance of the structural unit.
To strengthen the personal responsibility of employees for the quality of their work, the timely implementation of organizational and administrative documents of the enterprise, and high performance discipline, additional material incentives are being introduced - an allowance for the coefficient of quality attitude towards work (QLA).
The bonus for the coefficient of quality attitude towards work reflects the personal view of the immediate supervisor on the quality attitude towards work of the employee under his command. The amount of the CCP bonus is determined by the official salary and depends on the assessment of the employee’s work for the reporting month. The maximum allowance is 0.67 (Table 2.7).
Table 2.7 - Indicators for assessing the quality of work of managers, specialists and employees of VKM-Stal LLC
The assessment of the quality of work of employees is carried out by the head of the structural unit, and for directors of areas - by the managing director.
The enterprise keeps records for each worker (group of workers with collective responsibility) of all cases of failure to comply with certain regulatory requirements for skill, performance of official duties, as well as cases of acceptance and non-acceptance effective solutions in extreme or critical situations.
As an additional incentive based on the results of the work of the structural unit for the reporting period, employees are awarded a bonus based on indicators and in amounts in accordance with the Regulations “On bonuses for managers, specialists and employees of VKM-Steel LLC” and the Regulations “On remuneration and incentives for the labor of main workers and auxiliary workers "
The planned maximum bonus amount at the enterprise is 50%. Bonuses are accrued when basic and additional bonus indicators are met.
The main indicator of bonuses for all structural divisions and managers at all levels is the indicator “Fulfillment of the plan for profit from product sales”, for the fulfillment of which a 20% bonus is awarded.
The main indicator of bonuses for main workers is the indicator “Compliance with production standards by 100%”. Bonus indicators for key workers are shown in Table 2.8.
Table 2.8 - Bonus indicators for main and auxiliary workers of VKM-Stal LLC
|
Bonus indicator |
||
|
For essential workers:
|
||
|
For auxiliary workers of various structural divisions: a) cleaner production premises, office premises, bathrooms; cloakroom attendant: timely and high-quality completion of tasks;
|
The basis for calculating bonuses to workers is data from operational accounting, accounting and statistical reporting.
The amount of the premium may be reduced for: manufacturing of low-quality products; non-compliance by workers technological process; failure to ensure planned yields of suitable products; failure to implement plans and measures for nature protection; failure to take measures to strengthen order and discipline; exceeding standard MPC discharges; failure to comply with orders and instructions from the administration; low production standards; absenteeism, etc.
VKM-Stal LLC also makes additional payments to wages. Additional payment for multi-shift work is established in the following amounts (for managers, specialists and employees):
- - when working in a 2-shift mode, for each hour of work on the evening shift - 20% (10 rubles for main and auxiliary workers);
- - when working in a 3-shift mode, for each hour of work on the evening shift - 20%; for every hour of work in night shift- 40% (30 rubles for main and auxiliary workers);
- - for daily duty - 20% for each hour of work at night (from 10 pm to 6 am).
- - additional payment to employees for a temporarily absent employee is made in the amount of 25% of the official salary established for the combined position.
For JSC workers working in hazardous working conditions, additional payments are established to the tariff salary (Table 2.9). These are workers in such professions as steelmaker, steelmaker's assistant, machinist, welder, slinger, crane operator, etc.
Table 2.9 - Additional payments to workers of the VKM-Stal LLC enterprise working in hazardous working conditions
Additional payments for labor intensity for workers engaged in active labor on conveyors and production lines are established depending on the value of the worker intensity coefficient at the workplace to the hourly tariff rates shown in Table 2.10.
Table 2.10 - Additional payments for labor intensity for workers of VKM-Steel LLC
In order to stimulate staff, recognize the employee’s personal labor contribution to the development of the enterprise, increase employee interest in achieving high final results, increase labor productivity, save material and energy resources and strengthen labor discipline, the enterprise has the following reward system, presented in Table 2.11.
Table 2.11 - Reward system for employees of the enterprise VKM-Stal LLC
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Amount, rub. |
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Declaration of gratitude |
||
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Awards Certificate of honor enterprises |
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Entry to the Alley of Labor Glory of the enterprise |
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Awarding a Certificate of Honor, gratitude from the Head of the Administration of the Proletarsky District of the Saransk City Region |
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Awarding a Certificate of Honor, gratitude from the Head of the Administration of the Saransk City Region |
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Awarded with a Certificate of Honor, gratitude from the State Assembly of the Republic of Moldova |
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Awarding with awards from the Head of the Republic of Moldova, the Government of the Republic of Moldova |
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Awarding departmental titles “Honorary Mechanical Engineer”, etc. |
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Awarding Honorary Titles of the Russian Federation |
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Awarding orders and medals of the Russian Federation |
||
In accordance with the current collective agreement at the VKM-Steel LLC enterprise, the payments presented in table 2.12 are established.
Table 2.12 - Payments and financial assistance to employees of VKM-Steel LLC
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Amount, rub. |
||
|
Payment of a lump sum upon reaching retirement age |
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Payment of a one-time benefit to relatives in the event of the death of an employee |
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Payment of a one-time benefit to relatives in the event of the death of a pensioner whose last place of work was VKM-STEEL LLC |
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Payment of a one-time benefit to relatives in the event of the death of a WWII veteran |
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Payment of a lump sum benefit in the event of the death of close relatives |
||
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Compensation for the cost of a trip to DOL for children of enterprise employees |
10% of the cost |
|
|
Security New Year's gifts children of workers |
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Reimbursement of expenses for employees who have undergone surgery, provided the relevant documents are available |
10% of the cost |
|
|
Payment of benefits to an employee who left the enterprise due to conscription into the army and returned to the enterprise after service |
||
|
Reimbursement for hot meals |
40 rub./day |
|
|
One-time financial assistance for marriage registration |
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One-time financial assistance for the birth of a child |
For a more complete analysis of the wage system at the enterprise, it is necessary, in our opinion, to conduct an analysis of the wage fund (WF) of VKM-Steel LLC for 2010-2012.
To analyze the composition and structure of the wage fund and its dynamics, data in comparable prices for the wages for 2010-2012 were used. year.
Table 2.13 - Analysis of the composition, structure and dynamics of the wage fund of VKM-Stal LLC
|
Index |
2012 deviation from 2010 in ud. weight,% |
Growth rate by 2010, % |
||||||
|
Amount, thousand rubles |
Amount, thousand rubles |
Amount, rub. |
||||||
|
1. Labor costs included in the cost of production (production costs) |
||||||||
|
2. Payments from profits remaining at the disposal of the enterprise |
||||||||
|
Total wages |
Based on the data presented in Table 2.13, we can conclude that in the reporting year 2012, the structure of the organization’s payroll was 99.65% represented by labor costs as part of the cost price and 0.35% by payments from profits remaining at the disposal of the enterprise . The situation at the beginning of the study period was similar. There was a slight deviation in the share of labor costs in the cost price - by 0.36% points and, accordingly, in payments from profits - by -0.36% points compared to 2012. Significant specific gravity in the composition of funds allocated for consumption in 2010, 2011 and 2045, that part was occupied by that part that is included in the cost and reimbursed in revenue for sold products (99.29%; 99.48% and 99.65%). An analysis of the actual growth rates of wage and salary items reflects an increase in labor costs as part of the cost price by 5930.3 thousand rubles. or 13.5%. A significant decrease in the actual growth rate is associated with a decrease in payments from profits in 2012, compared to 2010, by 55.7%. In general, for the enterprise there was an increase in the amount of funds allocated for consumption (FZP) by 13.1%, which in absolute amount amounted to 5790.9 thousand rubles. To a certain extent, a decrease in payments from profits by 55.7% was also a negative aspect, since the decrease in the actual growth rate is associated with the presence of a loss based on the results of the enterprise’s economic activities in the period from 2010 to 2012.
In conclusion, it should be noted that the remuneration system at the VKM-Steel LLC enterprise has a number of shortcomings.
Firstly, the basis of the remuneration system is made up of tariff schedules organized on the basis of ETKS. At the same time, the ETKS has not been revised for a long time and since its latest edition a lot has changed: the level of pay, the labor market, the list of professions and specialties, the value system of the hired worker, etc.
Secondly, many workers do not understand the features of this remuneration system: what their personal earnings depend on, the size of the bonus, how they are formed.
Thirdly, the bonus system used is used mainly to implement the power functions of the administration, and not as an incentive.
Fourthly, the level of wages at this enterprise is higher than at other enterprises in the city, but lower than in the republic as a whole.
0Faculty of Economics and Management
Department of Personnel Management, Service and Tourism
COURSE WORK
in the discipline "Human Resource Management"
Improving the personnel remuneration system (using the example of the OKO company)
annotation
The topic of this course work is “Improving the personnel remuneration system.” The work contains 48 pages, 10 tables, 2 graphics, 26 sources used.
The theoretical part contains information about the organization and regulation of remuneration systems, the forms and traditional systems of remuneration, as well as the motivation and incentives of the organization’s personnel.
In the second chapter of the work, an analysis of remuneration is carried out using the example of the OKO company, which includes the organizational and economic characteristics of the organization, the current state of remuneration, an analysis of wages by category of employees and the main shortcomings of the current remuneration systems in the company.
Introduction
2 Analysis of the organization and regulation of remuneration using the example of the OKO company
3 Improving the company’s remuneration system
3. 3 Calculation of the economic efficiency of the proposed event
Conclusion
Appendix A
Introduction
In a market economy, wages express the direct interest of employees, employers and the state, and have an economic and social purpose. The economic purpose of wages is to stimulate the development of production and increase its efficiency. Its social purpose is to ensure the well-being of people in close connection with the growth of production efficiency and its expansion.
The current labor legislation considers the term “wages” not just as the amount of wages established for the employee, but also as the entire system of relations that are associated with ensuring that the employer establishes and makes payments to employees for their work in accordance with laws, other regulatory legal acts, collective contracts, agreements, local regulations and employment contracts. Wages are one of the main means of employee interest in the results of their work, its productivity, increasing the volume of products produced, and improving their quality.
Wages are a set of remunerations in cash or in kind that an employee receives for work actually performed, as well as for those periods that are included in working hours. Wages, on the one hand, are the main source of income and increasing the living standards of workers, and on the other hand, they are a means of materially stimulating the growth of production efficiency. Since wages are the main source of income for workers, it is necessary to constantly improve the wage system so that it fully ensures the reproduction of the labor force, taking into account the conditions and results of work, stimulates the improvement of skills, productivity, product quality, rational use and savings of all types of resources .
The labor income of each employee is determined by his personal contribution, taking into account the final results of the enterprise, is regulated by taxes and is not limited to maximum amounts. The minimum wage for workers of all organizational and legal forms is established by law.
The company administration independently selects and applies various systems remuneration of workers. In this area of activity, the administration relies on its HR specialists or HR managers, professional opportunities which are often limited and do not meet modern requirements.
The forms of wage organization that are often used are ineffective; they provide little incentive for workers to work
to the fullest extent of their capabilities, which may have a negative impact on the competitiveness of the organization.
This topic is relevant, because wages are one of the main factors in the socio-economic life of the country, the workforce and the individual.
This topic is reflected in the works of the following authors: K. S. Azizyan, N. A. Veshchunova, L. A. Fomina, Yu. A. Babaev and others. The object of the study is the OKO company, which specializes in the production and installation plastic windows.
The purpose of this work is comprehensive analysis problems of remuneration in the company and proposing effective directions for improving remuneration in the organization. In accordance with the goal, the following tasks are solved:
Determining the essence of remuneration and the procedure for its formation;
Studying the elements of remuneration organization using the example of a company;
Consideration of the possibility of using other, modern remuneration systems:
Consideration of the effectiveness of using new forms and elements of remuneration.
1 Theoretical foundations of the remuneration system at the enterprise
1. 1 Basic principles of organization and regulation of remuneration
Remuneration is a system of relations that are connected by ensuring the formation and implementation by the employer of payments to all employees for their work in accordance with laws, other regulations, agreements, collective agreements, local regulations and employment contracts.
Wages are based on the price of labor as a factor of production, which comes down to its ultimate performance. According to the theory of marginal productivity, a worker must produce a product that compensates for his wages, therefore, wages are made directly dependent on the efficiency of workers.
There are two forms of remuneration - monetary and non-monetary. The monetary form is the main one, because this is due to the role of money as a universal equivalent in commodity-money relations of market subjects.
Also, remuneration can be in kind or in the form of additional paid leave. If an enterprise does not have cash, then it can pay employees with the products they produce, which will be directly consumed by them, exchanged for other goods, or sold. There is payment for free time. This form is aimed at stimulating high-quality and intensive work and allows the employee to use this time for rest, earning additional income or studying.
An important specificity is represented by the forms of remuneration for creative workers (literature, art, science), who are paid royalties for works commissioned by them - their creation, implementation and distribution through practical use or public performance in accordance with current regulatory documents.
Wages represent the sum of cash payments and the value of payment in kind for work performed under an employment agreement (contract).
Main functions of payroll:
1) reproductive;
2) measuring;
3) stimulating;
4) regulatory;
5) social.
The reproduction function provides the worker with such a volume of material goods and services at a level that is sufficient for the normal reproduction of the workforce and increasing intellectual potential in accordance with changing technical and social factors production. From the perspective of the total costs of labor reproduction, its value includes such aspects of a worker’s life as the costs of meeting the needs for food, housing, education, medical care, etc., and must correspond to or exceed the cost of the “consumer basket.”
The measuring function is an estimated indicator of the labor contribution of each employee and labor costs in the production of the labor product. Using various elements of wages, labor costs of different quality and quantity are measured. The effectiveness of this function depends on compliance with the principle of wage differentiation.
Stimulating function - a material incentive for interest in work and increasing labor productivity and quality of work. The implementation of this function is ensured by combining labor standards, tariff and bonus systems into specific wage systems, which ensure changes in the level of wages depending on the individual and collective results of workers.
The regulatory function plays the role of balancing the interests of employees and employers. It regulates the demand for the company’s products and services, as well as labor in the labor market. The basis for the implementation of the regulatory function is the differentiation of wages by groups of workers, by priority of activities or other distinctive features. Thus, a certain policy is developed to establish the level of wages for various categories of workers in specific production conditions.
The social function establishes differences in wage levels. This difference should be sufficiently significant and ensure interest in advanced training, as well as differentiate the level of payment depending on the severity and responsibility of the work. However, the level of such differentiation must correspond to ideas about fairness in the level of wages between social groups, working both at this enterprise and in this region.
Wages represent the price of labor power, corresponding to the cost of consumer goods and services that ensure the reproduction of labor power, satisfying the physical and spiritual needs of the worker himself and his family members. There are nominal and real wages.
Below par wages refers to the amount of money that a worker receives for his work. By the size of the nominal wage one can judge the level of earnings and income, but not the level of consumption and well-being of a person. There are two types of nominal wages: accrued (the entire amount due) and paid (less taxes).
Real wages are the volume of material goods and services that can be purchased for nominal wages at a given price level for goods and services. Real wages reflect the actual purchasing power of nominal wages. The relationship between these quantities is expressed by the formula:
Lv. h. n. = Un. h. p./Up., where Ur. h. n. - real wage index; Un. h. n - nominal wage index; Up is the price index for goods and services.
In a market economy, wages reflect the main and immediate interests of employers, employees and the state as a whole.
One of the conditions for the effective organization of remuneration is to find a suitable mechanism for implementing and maintaining the necessary balance of interests of this tripartite partnership.
The overall level of remuneration at an enterprise may depend on the following main factors:
1) the results of the economic activities of the enterprise, its profitability;
2) personnel policy of the enterprise;
3) the level of unemployment in the region and region;
4) government regulation remuneration and activities of trade unions;
5) competition in the labor market, the state of supply and demand for workers in relevant specialties.
In conditions market relations The organization of wages at an enterprise is designed to solve two problems:
Guarantee payment to the employee in accordance with the results of his work and the cost of labor in the labor market;
Ensure that the employer achieves a result in the production process that would allow him to recoup costs and make a profit.
The organization of work is based on the following principles:
1 Payment of labor depending on quantity and quality;
2 Differentiation of wages depending on the qualifications of the employee and working conditions;
3 Maximum combination of individual and collective interest in the final results of work;
4 Strengthening social security, that is, systematically increasing real wages;
5 Exceeding the growth rate of labor productivity over the growth rate of average wages;
6 Use of various opportunities by enterprises to earn money for wages;
7 Timeliness of payment;
8 Carrying out a unified state policy in the field of wage regulation.
The organization of remuneration is based on the use of four constituent elements:
1 Technical labor standardization - the establishment of reasonable labor standards (standards of time, production, maintenance, service time, number of personnel) necessary for an objective quantitative assessment of labor costs to perform specific work. Standards are used to determine wages per unit of work.
2 Tariff system, consisting of tariff rates, tariff schedules, tariff and qualification reference books, official salaries for employees, additional payments and allowances to tariff wages, regional coefficients. The labor market, through the laws of supply and demand, influences, first of all, the amount of tariff rates and official salaries. Additional payments and allowances are aimed at a more complete assessment of the characteristics of work - its severity, intensity, importance, work in unfavorable conditions, urgency, and others.
3 Forms and systems of remuneration that integrate the methods of using labor standards and the tariff system for calculating wages of workers, taking into account the characteristics of their work.
4 The mechanism for forming the wage fund, which manifests itself in determining the source of funds and justifying the amount intended for wages and incentive payments.
The calculation of the standard wage fund at the enterprise is carried out using incremental and analytical methods. In the first case, they proceed from the basic fund and the increase in production volume; in the second - based on the labor intensity of the production program.
When analytically planning the standard wage fund, two methods can be used: direct - calculation based on standards for the wage intensity of products (services) and stages of work; indirect: calculation in proportion to the objective organizational and technical characteristics of the production unit.
The incentive fund, which is formed to stimulate the efficiency and profitability of the enterprise, is formed from the income actually received after subtracting mandatory contributions to regulatory wage funds on a residual basis, technical development, social development and a dividend fund.
The tariff system is traditionally the basis for organizing workers' wages and is built depending on working conditions, the qualifications of workers, the form of remuneration and the importance of this industry in the national economy.
The tariff system is a set of standards with the help of which the wages of workers of different categories are differentiated. With its help, under equal economic conditions, the unity of the measure of labor and its payment, equal pay for equal work, and differentiation of the main part of wages are ensured depending on factors that characterize the quality of labor. Thus, his salary consists of the sum of estimates of his labor contribution and to a small extent depends on the final results of the work of the specific department in which he works and the enterprise as a whole.
Let's take a closer look at the main elements of the tariff system. A tariff and qualification reference book is a normative document that is intended for the qualification of work, the assignment of qualification categories to workers, as well as for the preparation of programs for the training and advanced training of workers in the system of vocational education and directly in production. It contains the necessary qualification characteristics and requirements that apply to workers performing different content, degree of complexity and accuracy, work profile, in relation to production skills, accumulated knowledge, and also taking into account the nature of the responsibility resting on the employee for the correct performance of the work.
To ensure intersectoral unity in the tariffication of work, a Unified Tariff and Qualification Directory of Work and Professions of Workers (UTKS) has been developed, which retains the role of a normative document in matters of labor tariffication. In addition, another 72 tariff and qualification reference books have been developed for various industries and types of work, taking into account their industry characteristics. ETKS tariffs 6195 occupations of workers. Based on these references:
1) the name of the profession is established;
2) categories of work are determined or work is assigned to one or another wage group depending on the complexity, nature and specific working conditions in which it is performed, as well as the qualifications required of workers;
3) a qualification rank is assigned, which determines the size of the worker’s tariff rate;
4) curricula and programs are drawn up for training, retraining and advanced training of workers in all sectors of the economy;
5) lists of jobs and professions are being developed for preferential pension provision, etc.
The tariff and qualification directory for each profession and category has three sections: “Job characteristics”, “Must know”, “Work examples”. The characteristics indicate the complexity of the work, the organizational and technical conditions of production, technological equipment, and the required degree of independence in performing this type of work. The most typical examples of work for the corresponding tariff category for each specialty are given.
Since the decision to increase salaries, introduce (cancel) bonuses for managers, specialists and employees is made as a result of certification at least once every three years, their job qualities are determined, first of all, based on the requirements of the qualification directory.
The tariff rate (salary) expresses the absolute amount of remuneration various groups and categories of workers per unit of working time. The initial basis for determining tariff rates by category is the tariff rate of category 1, which determines the level of remuneration for the simplest work. With the help of tariff rates, intersectoral regulation of wages is carried out. It involves the establishment of increased tariff rates in leading sectors of the economy. The highest rates are set for workers in the extractive industries, who determine scientific and technical progress. At non-state owned enterprises, the size of tariff rates depends, first of all, on what financial condition enterprises and is installed by them independently. There are hourly, daily and monthly tariff rates. They are established for each qualification category.
Figure 1 - Formation of tariff rate
Tariff category is a value that reflects the complexity of work and the qualifications of the worker.
Qualification rank is a value that shows the level vocational training employee
Tariff schedule - a set of tariff categories of work (professions, positions), which are determined depending on the complexity of the work and qualification characteristics workers using tariff coefficients. The ratio of the hourly tariff rate of the corresponding category to the hourly rate of the 1st category is called the tariff coefficient and shows how many times the level of payment for work (labor) of a given category exceeds the level of payment for work of the 1st category. In this case, the tariff coefficient of the first category is taken equal to one.
Table 1 - Example of a tariff schedule
|
Tariff coefficient |
Tariff schedules have the following characteristics: range of the tariff schedule, number of categories, tariff coefficients, absolute and relative increase in tariff coefficients.
The number of tariff categories in the most common scale of workers is 6, in the unified tariff scale of employees of budgetary organizations - 18.
The absolute increase in tariff coefficients represents the difference between tariff coefficients of adjacent categories. The relative increase in coefficients is the ratio of the larger coefficient to the smaller one minus one, expressed as a percentage.
Table 2 - Types of tariff schedules
The ratio of the extreme digits of the tariff schedule is called its range. It establishes the ratio in the complexity and remuneration of workers of higher and lower qualifications.
Regional wage coefficients reflect changes in wages depending on the location of the enterprise and are a means of inter-district regulation. The need for such regulation is explained by territorial differences in the level of retail prices for a significant part of consumer goods, differences in the material composition of consumption due to the natural and climatic characteristics of the regions, as well as unequal rates of development of production and the relationship between the need for labor and the possibility of satisfying it through local labor resources in different areas. The regional coefficient is calculated based on the wages of employees without restrictions on its maximum amount. Regional coefficients do not form official salaries and new tariff rates.
Thus, wages are formed as the cost (price) of labor power, ensuring normal reproduction of labor power, motivating workers to work effectively at their workplace. Its minimum level is regulated by the state, taking into account its economic development by establishing: the amount of the minimum wage and the tariff rate of the 1st category; conditions for determining the part of the enterprise’s income allocated to wages; terms and conditions of remuneration in budgetary organizations and institutions; indexing mechanism.
1. 2 Forms and traditional systems of remuneration
Necessary elements of the organization of wages are forms and systems of remuneration that establish a connection between the amount of earnings, the quality and quantity of labor, stipulating a certain procedure for its calculation depending on the organizational conditions of production and the results of labor.
Wage systems characterize the calculation of the relationship between the elements of wages: the tariff part, additional payments, allowances, bonuses.
According to the method of measuring the amount of labor, payment systems are classified:
Piece work (the amount of labor is measured by the amount of products produced by the employee or work performed);
Time-based (the amount of labor is measured by the amount of time worked by the employee);
Accord (the amount of labor is measured by a certain amount of work).
According to the forms of expression and evaluation of labor results, payment systems are divided into:
Collective (based on the assessment of collective work);
Individual (based on an assessment of the labor results of each individual employee).
According to the number of indicators that are taken into account when assessing the labor contribution of employees, payment systems are divided into:
1) one-factor, or simple (simple piecework, simple time-based);
2) multi-factor, or bonus (piece-bonus, piece-bonus, time-bonus, piece-progressive and others).
Based on the nature of the employee’s impact on the result of labor, payment systems are divided into direct and indirect.
Time-based wages are wages in which employees are paid at a set tariff rate or salary for the time actually worked in production.
Based on the payment mechanism, the time-based form stimulates, first of all, improving the skills of workers and strengthening labor discipline.
Table 3 - Forms and systems of remuneration
A time-based form of remuneration is used in such cases if:
A worker cannot directly influence the increase in output, which is determined by the productivity of machines, apparatus or units;
There are no quantitative indicators of output that are necessary to establish piecework prices;
At workplaces and areas where provision High Quality products and work is the main indicator of work;
In jobs where accounting and rationing of labor require large costs and are not economically feasible, as well as where the employee’s work cannot be accurately rationed;
When performing equipment maintenance work, as well as on conveyor lines with a regulated rhythm.
A piece-rate form of remuneration is a form in which wages to employees are calculated at predetermined rates for each unit of work performed or product manufactured.
Prices are calculated based on the tariff rate corresponding to the category of this type of work and established norm time (production):
Рс=Тс*Нр,
where Рс - piece rate, rub.; Тс - hourly (daily) tariff rate, rub.; NVR is the norm of time.
Рс=Тс/Нvir,
where Рс - piece rate, rub.; Тс - hourly (daily) tariff rate, rub.; Nvyr is the production norm.
Piece rates do not depend on when the work being priced was performed - during the day, in the evening or at night, as well as on overtime work (there are special types of additional payments to take into account these work factors). If labor standards or tariff rates change, this leads to a recalculation of individual prices.
The piecework form of payment stimulates, first of all, the improvement of volumetric, quantitative indicators of work, therefore it is used in production areas with a predominance of manual or machine-manual labor. It is under these conditions that it is possible to take into account the quantity and quality of products produced, to ensure an increase in production volume and the validity of established labor standards.
The piecework form of wages is most appropriate to use when:
The presence of quantitative performance indicators that directly depend on a given worker or their team;
Opportunities for workers to increase output or the volume of work performed;
Possibility of accurately recording the quantity (volume) of work performed;
The need in this area to stimulate workers to further increase production output or the volume of work performed;
Application of sound labor standards;
There is no negative impact of piecework payment on the level of quality of products (work), the degree of compliance with technological safety requirements and modes, rational use of raw materials, energy and materials.
The piecework form of remuneration is divided into direct piecework, progressive piecework, piecework-bonus, piecework, indirect piecework, depending on the method of recording production and the types of additional incentives used (bonuses, increased prices).
Depending on how an employee’s earnings are determined - based on individual or group performance indicators - each of the systems can be individual or collective.
With a direct individual piece-rate wage system, a worker’s earnings can be determined by the formula:
3=Z Р iqi,
where P i is the price for i-th type products or work, r.; q i is the number of processed products of the i-th type.
In a direct collective piecework system, workers' wages can be determined in a similar way using individual and collective piecework rates and the total volume of output (work performed) by the team as a whole.
Payment at individual piece rates for the final results of a team’s work is used in cases where team work requires a strict division of labor among workers who are technologically interconnected. Individual piece rates are established for each profession in a team based on tariff rates and the general production rate of the team.
Payment using collective piece rates is more often used in complex teams, where general workers work without a clearly defined division of labor on the principle of interchangeability.
Under a piece-rate progressive wage system, a worker's work within the limits of fulfilling standards is paid at direct piece rates, and for production in excess of these initial standards - at increased rates.
The main requirements when using a piece-rate progressive system should include the correct establishment of the initial base, the development of effective scales for increasing prices, accurate accounting of product output and the time actually worked by each worker.
With a piece-rate bonus system, a piece-worker or a team of workers, in addition to earnings at direct piece rates, is paid a bonus for fulfilling or exceeding established quantitative and qualitative indicators, which are provided for in the bonus regulations.
With a lump sum system of remuneration, the rate is set not for an individual operation, but for the entire volume of work. The amount of lump sum payment is determined on the basis of the current standards of time (production) and prices, and in their absence - on the basis of standards and prices for similar work. Typically, with lump sum payment, workers are rewarded for reducing the time required to complete tasks, which strengthens the stimulating role of this system in increasing labor productivity.
With an indirect piece-rate wage system, which is used primarily for the payment of auxiliary workers directly engaged in servicing the main workers, indirect piece-rate prices are determined.
The use of one form or another of remuneration depends on production conditions. In each specific case, the form of remuneration should be used that most closely corresponds to the organizational and technical conditions of production and thereby contributes to improving the results of labor activity.
The current trend of a steady reduction in the scope of application of the piecework form of remuneration (in its pure form) in the conditions of new technologies and market relations necessitates the use of remuneration systems that are based on a time-based form with the necessary economic justification of working time according to the criteria of productivity, efficiency or profitability of labor, depending on the functions and work performed by the employee. In this case, a single measure of the level of remuneration can be the tariff rate of wages per 1 standard hour of work of a certain degree of complexity in relation to various types of activities and categories of workers.
1. 3 Motivation and stimulation of personnel as part of the remuneration policy
Individualization of wages involves material remuneration for labor, compensation for the adverse effects of working conditions, attracting workers to areas with unfavorable working conditions, payment for additional labor results, economic assessment improved labor.
There are the following main directions for stimulating (motivating) the work of the organization’s employees:
1) wages at a rate that characterizes the assessment of the employee’s contribution to the results of the organization’s activities ( absolute value and the relationship with the level of pay of other employees of the enterprise).
2) a system of additional payments and allowances, occupying an intermediate position between the tariff system and bonus payments. Additional payments and allowances most often characterize special conditions work of a specific employee.
The amounts and terms of their payments are determined in collective agreements. A specific feature of incentive payments (additional payments and allowances) is that they compensate for additional energy costs or the employee’s workload during the working day.
All types of additional payments can be divided into the following groups:
Additional payments related to the special nature of the work performed ( overtime work, work on holidays and weekends, shift method And traveling character work);
Additional payments and bonuses for working conditions that deviate from normal (difficult working conditions, intensity on the assembly line, work at night, underground, in emergency situations);
Additional payments and allowances for additional labor results (for combining professions, expanding service areas, leading a team, for professional excellence, achievements in work, urgent work).
3) employee bonus system. Bonuses are understood as payment to employees of amounts of money in excess of their basic earnings in order to encourage them to achieve certain results, fulfill obligations, as well as to stimulate their further increase (obligations, results). Thus, bonuses can be considered as a type of incentive payments and allowances.
4) systems of intra-company benefits for employees of the enterprise include:
Subsidizing and discounted food, installation of vending machines for hot drinks and snacks at the enterprise;
Reimbursement of expenses for housing, housing and communal services;
Payment for training and advanced training;
Selling the company's products to its employees at a discount (10% or more);
Full or partial payment of the employee’s travel expenses to and from work;
Providing interest-free or low-interest loans to its employees;
Providing the right to use company transport, providing living space;
Payment sick leave above a certain level, health insurance for employees at the expense of the enterprise, provision of preferential vouchers to sanatoriums.
These measures make it possible to increase the social security of enterprise employees and the labor motivation of their highly effective activities.
5) intangible (non-economic benefits) and privileges for personnel include:
Providing the right to a sliding, flexible work schedule;
Providing time off, increasing the duration of paid leave for certain achievements and successes in work;
Earlier retirement and others.
The use of opportunities to provide additional free time, differentiation of vacations and redistribution of working time lead to a reduction in non-productive time spent, an increase in staff interest in improving product quality and, ultimately, to a reduction in lost working time.
6) moral encouragement of employees includes: promotion; career planning; any valuable gifts; badges of honor and gratitude.
The effectiveness of personnel management, manifested in the results achieved, depends on the degree of effectiveness of the measures taken, the most important role among which is played by remuneration.
The process of determining an employee’s material remuneration must, on the one hand, take into account the employee’s activities, and on the other hand, motivate him to achieve the desired level of activity.
Personnel remuneration refers to all costs incurred by the employer on the basis of an employment agreement.
Although material reward plays a leading role in motivation, it does not achieve its goals without taking into account other factors. It must be combined with socio-psychological and organizational-administrative factors: recognition of the team, participation in management decisions, power, privileges, interesting work, promotion, comfortable working conditions, and more.
Material motivation is considered as a means of satisfying not only physiological needs, but also the need for safety. The amount of remuneration can also be seen as a reflection of the degree of respect and level of position held. If its growth reflects the employee’s merits, then this is an indicator of the employee’s high assessment by management, prestige and special status. Some authors tend to consider rewards as a means of satisfying the need for self-esteem. Reward is everything that a person considers valuable to himself. People have specific concepts of value, which is why assessments of rewards relative to their value are also different.
An ineffective reward system can cause dissatisfaction among employees and lead to negative consequences for the organization in the form of demotivation of employees, stagnation or decline in productivity, high staff turnover, and tension in relations between employees. Dissatisfied employees may enter into open conflict with the organization's leaders, stop working, organize a strike, or leave the organization altogether.
An effective reward system increases the productivity of employees and directs their activities in the right direction for the organization.
All changes in the area of remuneration must be well thought out and prepared accordingly, since this is an extremely sensitive area that directly affects the material interests of employees, in which the cost of error is extremely high. The meaning of remuneration is to stimulate the behavior of employees, direct them to achieve the strategic objectives facing them and connect the material interests of employees with the strategic objectives of the organization.
This key setting defines the following objectives of the reward system:
1 Attracting personnel to the organization. Organizations compete with each other in the labor market, trying to attract the specialists they need to achieve strategic goals. In this sense, the remuneration system must be competitive in relation to the category of employees required by the organization.
2 Retention of employees in the organization. When an organization's rewards do not match what the job market offers, employees may begin to leave the organization. To avoid losing employees for whose professional training and development the organization has spent certain funds, managers must ensure the competitiveness of the remuneration system.
3 Stimulating productive behavior. Remuneration should focus employees on those actions that are necessary for the organization. Productivity, creativity, experience, dedication to the organization should be rewarded through a reward system.
4 Control of labor costs. Since labor costs are a major expense for most modern organizations, effective management they are fundamental to the overall success of the organization. A well-designed compensation system allows an organization to control labor costs while ensuring the availability of the required employees. Unreasonably high wage costs have led to the bankruptcy of many organizations.
5 Efficiency and simplicity. The remuneration system should be well understood by every employee of the organization (otherwise it may cause an inadequate reaction from staff and entail actions that are not intended to stimulate it), and also not require significant material resources to ensure its functioning.
6 Compliance with legal requirements. In all countries, employee remuneration is regulated to one degree or another by state legislation, ignoring which can lead to judicial and administrative sanctions against the organization, which is associated with significant material and moral costs. The above objectives of the remuneration system may come into some conflict with each other (for example, cost control and attracting qualified personnel). The management of the organization must find the optimal balance between the degrees of solving these problems (different for each organization at each stage of its development). And when a new company is created, the task of minimizing labor costs is usually sacrificed to the task of attracting qualified personnel. During times of economic hardship, organizations often delay hiring new employees and focus on cutting payroll costs.
Thus, the main purpose of remuneration is to ensure the implementation of the organization's strategic goals by attracting, retaining and motivating personnel.
Each organization uses its own employee compensation system, reflecting its goals, the management philosophy of its leaders, traditions, and also taking into account the resources at its disposal. In this regard, it is difficult to give universal recommendations on how to build this system. Only the management of an organization (sometimes with the help of professional help) can determine which compensation methods are most suitable for them. However, research has shown that organizations operating in a fairly stable external environment are more effective traditional methods rewards, while in companies operating in conditions of high instability and unpredictability, non-traditional systems operate more successfully. This statement is also true with respect to internal organizational structures: in rigid hierarchical organizations it is more effective to use traditional ones; methods, and in organizations with a rapidly changing or diffuse structure, unconventional methods work better.
Practice has developed seven general rules material incentives for personnel based on the unity of material and moral incentives with the dominance of material ones:
Material incentive systems should be simple and understandable to every employee;
Systems must be flexible, providing the opportunity to immediately reward every positive performance outcome;
The amount of incentives must be economically and psychologically justified (more and less often; more often, but less);
It is important to organize personnel incentives according to indicators that are perceived by everyone as correct;
Reward systems should provide employees with a sense of fairness in material rewards;
Reward systems should help increase employee interest in improving not only individual work, but also work in “business relationships” with other employees;
Employees must see a clear relationship between the results of their work and the activities of the company (what the mistakes of employees can lead to and what the successes of each of them lead to).
The rules are used to design a system of material incentives for employees. It is very important to determine how many times (weekly, monthly, quarterly, twice or once a year) monetary remuneration will be paid, in addition to salary, and in what amounts. General scheme combines payment for individual labor with the distribution of a percentage of profits between employees in equal shares, interest- ing them in the success of the common cause. This combination lays down material basis identification of all employees with the goals of the organization.
Labor incentives are effective if management bodies are able to achieve and maintain the level of work for which they are paid. The purpose of incentives is not to encourage a person to work at all, but to encourage him to do better (more) than what is conditioned labor relations. This goal can be achieved only with a systematic approach and stimulation of work.
The system of moral and material incentives for labor involves a set of measures aimed at increasing business activity workers and, as a result, increased labor efficiency and quality. But at the same time, the employee must know what requirements are imposed on him, what reward he will receive if they are strictly observed, and what sanctions will follow if they are violated.
However, the line between controlled and motivated behavior is conditional and fluid, since an employee with strong work motivation has self-discipline, the habit of conscientiously fulfilling requirements and treating them as his own standards of behavior.
The effectiveness of rewards depends not only on their type, but also on the timing and frequency. Thus, remuneration has almost no effect on employees if it deviates for a long time from the period of achievement. It is important to create an atmosphere in the team in which any employee is confident that his remuneration will correspond to the efforts expended and the results achieved when compared with the results of other employees.
When designing material rewards, it is necessary to adhere to the following general provisions:
Encourage employees to work hard in the organization;
Provide bonuses or moral encouragement promptly enough so that the employee does not lose the connection between his additional contribution and the recognition received from the administration;
Pay not for effort, but for results, mainly those reflected in profits;
If possible, pay in accordance with what the employee has achieved in his area of responsibility;
Pay more when the company is doing well, and reduce pay if the results are not good enough;
To retain the necessary employees in the organization, ensure payment of part of the amounts accrued in a given year in subsequent years, provided that the employee continues to work with the organization. He loses these amounts (in whole or in part) in the event of leaving;
Material remuneration should be provided in the forms that are most acceptable and attractive to the employee.
These measures to increase labor motivation make it possible to more effectively use the labor potential of the enterprise and increase its competitiveness in the market.
2. Analysis of the organization and regulation of wages using the example of the OKO company
2. 1 Organizational and economic characteristics of the company
The OKO company was founded in 2007 in the city of Meleuz in the Republic of Bashkortostan. Over the past years, she has gained extensive experience in impeccable and responsible service, which is reflected in many clients. The company provides an individual approach to each client, qualified advice, accurate calculation of the cost of the order, and assistance in choosing the right products.
The OKO company is a reliable, actively developing company engaged in the development, production and installation of high-quality metal-plastic products using an elite, environmentally friendly, certified PROPLEX profile (Austria), operating in accordance with the requirements of the European environmental program “Responsibility for Tomorrow”.
The company's mission is to provide consumers with high-quality PVC windows that guarantee protection and comfort through the development and production of window systems, comprehensive supplies of components and the provision of comprehensive professional services.
The main activities of the OKO company are currently:
Plastic windows and doors of the PROPLEX profile system;
Plastic windows and doors of the REHAU profile system (Germany);
Finishing of balconies and loggias;
Glazing of country houses;
Plastic sliding system Slidors (Russia);
Aluminum sliding system Provedal (Russia).
The company primarily uses Proplex plastic profiles, which are manufactured using Austrian technologies in Russia.
The Proplex system of plastic profiles is designed for the manufacture of doors and windows for any premises and is specially adapted to Russian operating conditions. The system meets all Russian thermal insulation requirements, as well as all major international standards.
For the end consumer, the benefit of such a large product range is obvious. When ordering a window, the buyer gets the opportunity to choose exactly the system that most fully satisfies his needs and, of course, corresponds to his financial capabilities. For the manufacturer of PVC structures, there are also a number of advantages in using several PROPLEX systems. Firstly, it provides the opportunity to work in several consumer segments in order to offer a wider selection of products. Secondly, all PROPLEX profile systems are designed in such a way as to minimize the inconvenience that may be associated with equipment changeover when moving from one system to another.
The company always strives to provide only the best and high-quality products, taking into account all the requirements and wishes of customers.
The company uses a linear-functional management structure. Each division is headed by one manager, in whose hands all management functions are concentrated. He exercises sole leadership over the company employees subordinate to him. The orders he gives are binding on lower levels. Each manager, in turn, reports to the director of the company. The structure of the OKO company consists of administrative and management personnel, production staff, maintenance and support staff.
The company's staff consists of 27 people: general director - 1 person, chief accountant - 1 person, accountant - 3 people, production manager - 1 person, marketing manager - 2 people, sales manager - 2 people, assembler - glazier - 5 people, installers - 5 people, supply person - 1 person, assistant - 2 people, driver - 2 people, cleaner - 2 people.
Figure 2 - Organizational structure of the OKO company
Responsibilities and functions of some company employees:
CEO manages the financial and economic activities of the company, ensures the implementation of the tasks and functions assigned to it, organizes the work and effective interaction of all structural divisions of the company, ensures compliance with the law in the company’s activities, organizes work to provide the company with qualified personnel, rational use of their professional knowledge, experience and skills , conducting certifications and training of employees, performs other executive and administrative responsibilities regarding the operational and economic activities of the company.
Accountants are responsible for generating reliable and complete information about the company’s activities and its property status, which is necessary for users of financial statements: managers, organizers, participants and owners of company property, as well as external ones: investors, creditors and other users of financial statements. The tasks of accountants also include providing information that is necessary for internal and external users of financial statements to monitor compliance with legislation. Russian Federation when the company carries out business activities, the existence and movement of property and contracts, the use of material, labor and financial resources in relation to approved norms, standards and estimates. In addition, such tasks include eliminating the negative results of the company’s economic activities and ensuring its financial stability.
The production manager is directly subordinate to the general director. He plans the technical improvement of the production process, organizes work and prepares all the required resources for the implementation of the production process. The production manager also exercises full control over the execution process, delivery and documentation results of the company's production activities. Keeps records of production activities, consumption of materials, and also prepares necessary documentation to provide reports to senior management. Monitors production quality.
The marketer reports directly to the CEO. This is a specialist who ensures the most efficient operation of the OKO company and increases the impact of its activities with the help of the entire marketing complex. A marketer is involved in developing plans for promoting and selling products, analyzing target audience and market, forecasting changes in supply and demand, organizing promotions, events, research, assortment formation, pricing.
The sales manager carries out activities to provide and promote advertising services, concludes contracts, searches for new clients, accepts new orders, advises clients, fills out accounts in accordance with accounting requirements, enters into mutually beneficial transactions, carries out individual official assignments from the immediate manager, and follows the labor regulations adopted by the company.
The supplier belongs to the category of technical performers. He prepares documentation for received and dispatched cargo, makes unscheduled purchases of materials, accompanies cargo along the route, ensures safety and facilitates their modern delivery, checks the condition of cargo, determines the mode of their transportation, takes measures to improve the efficiency of operation of material resources by reducing costs associated with their purchase, delivery and storage.
Currently, the company operates in two areas: production and installation of plastic windows and doors. Let's make a projected assessment of the company's value for 2013.
Available financial statements for 2011-2012 will be used here. The main items of these statements will be compared with sales volume. 2013 was chosen as the forecast period.
When predicting parameter values, the following leading assumptions were made:
The sales growth rate will be 10%, taking into account favorable macroeconomic trends;
Due to an increase in energy prices and wages, the share of cost in the price will increase from 75% to 80%;
Implementation compliance and working capital will remain around the same level as before;
The effective income tax rate will increase from 8 to 12%;
The level of management expenses will remain at the same level;
The level of depreciation will remain the same as before;
Due to the improvement of the economic situation in the country, the level of receivables will decrease by 6%;
Accounts payable will decrease by 8% due to an increase in sales and an increase in company profits (see Table 2).
Table 4 - forecast of model parameters for 2013, %.
2. 2 The current state of remuneration in the company and analysis of wages for certain categories of employees
The company establishes remuneration for employees in accordance with concluded contracts at accepted tariff rates (official salaries) and regulations on bonuses in the organization, if their qualifications correspond to the specific results of the work performed. This is carried out on the basis of a concluded collective agreement.
The employer guarantees employees a salary not lower than minimum size wages. It is also his responsibility to ensure the safety of the health and life of workers during their work activities. He is responsible for this in accordance with the legislation of the Russian Federation.
The director of the organization undertakes, if funds are available, to provide such material assistance as:
Social payments at the birth of a child;
Payments for your own wedding and children’s weddings;
Payments in connection with the death of family members and provision of necessary transport.
Payment of wages in accordance with the concluded collective agreement is made in a timely manner, no later than the 25th of the next month. In exceptional cases, individual employees may be given an unscheduled advance on wages, but not more than a month’s salary.
In accordance with labor legislation workers are given rest time. Additionally, rest periods without pay are provided in the following cases:
Seeing off your own children to the army (no more than two days);
Children's wedding (no more than three days).
Leave without pay is also provided on the basis of a written application from the employee (Article 128 of the Labor Code of the Russian Federation):
Working old age pensioners (no more than 14 calendar days per year);
For the wives and parents of military personnel who died as a result of injury or injury received while performing duties in military service, as well as as a result of an illness acquired in military service - no more than 14 calendar days);
In case of registration of marriage or birth of a child, death of relatives - up to 5 calendar days.
The organization maintains a time sheet to monitor compliance with labor regulations and record working hours. The time sheet regularly reflects the time each employee arrives at work and leaves work, the duration of his working hours, as well as downtime, absences or lateness to work.
Accounting for the use of working time and attendance at work is carried out using the continuous registration method, that is, all employees who showed up, were late, and were absent for any reason are noted.
Table 5 - Payroll by position
|
Job title |
Number of staff units |
Official |
payable |
Average monthly salary, rub. |
|
CEO |
||||
|
Chief Accountant |
||||
|
Boss production |
||||
|
Marketer |
||||
|
Sales Manager |
||||
|
Accountant |
||||
|
glazier |
||||
|
Installers |
||||
|
Assistants |
||||
|
Supplier |
||||
|
Storekeeper |
||||
|
Cleaning woman |
||||
The table shows data for 2012. This company uses a salary system based on official salaries. In total, the number of employees is 25 people, and the average monthly salary is about 13,880 rubles. Each employee receives a certain salary according to the position held. Additional cash, that is, in the form of bonuses and allowances, employees receive 20% of their own salary.
Table 6 - Payroll fund for certain categories of OKO employees
|
workers |
Payroll fund, thousand rubles. |
|||
|
Growth rate, % |
||||
|
CEO |
||||
|
Chief Accountant |
||||
|
Boss production |
||||
|
Marketer |
||||
|
Sales Manager |
||||
|
Accountant |
||||
|
Glass assembler |
||||
|
Installers |
||||
|
Assistants |
||||
|
Supplier |
||||
|
Storekeeper |
||||
|
Cleaning woman |
||||
|
Total payroll |
||||
Based on these calculations, we can conclude that a large share of the average salary in the wage fund falls on marketers. On average, the salary growth for marketers between 2011 and 2012 was 17.1%. The general director's salary increased by 12.1%, that of the chief accountant - by 13%, that of the production manager by 7%, that of sales managers - by 8%, that of accountants - by 10.9%, that of glass assemblers and installers. - by 7.3%, for assistants - by 6.2%, for supplies - by 7.7%, for storekeepers - by 7.8% and for cleaners - by 5.7% in 2012 compared to 2011. The entire average wage increase for all categories of workers in the period from 2011 to 2012 was 9.2%.
The salary for workers and employees is set using monthly official salaries. In the same way, employees are also paid a bonus, that is, payments of money in excess of their basic earnings. the main objective bonuses - encouraging achieved results and successes in work and stimulating employees for the successful completion of subsequent work. Also, employees of the organization are paid a bonus based on the final results of the enterprise. The bonus based on the results of all work for the year is paid when the results of production and financial activities. It is paid to all workers depending on the contribution of each of them to achieving the company's goals and results and is paid once a year.
The organization annually calculates the working time budget. The duration of working time is determined by the following formula: Trv = (Tk-Tv-Tprz-To-Tb-Tu-Tg-Tpr) x Psm-(Tkm+Tp+Ts), where Trv is the duration of working time;
Tk - number of calendar days in a year;
TV - number of days off per year;
Tprz - quantity holidays per year;
That is the duration of the next and additional holidays, days;
TB - absenteeism from work due to childbirth and illness, days;
Tu - duration of study holidays, days;
Tg - time to perform public and state duties, days;
Tpr - other absences permitted by law, days;
Psm - duration of work shift, hours;
Tkm - loss of working time due to a reduction in the working day for nursing mothers, hours;
Тп - loss of working time due to a reduction in the working day for adolescents, hours;
Ts - loss of working time due to shortened working hours on pre-holiday days, hours.
Calculation of the time budget for the year (with an 8-hour work week) is presented in the table.
Table 7 - Working time budget for the year
|
Nominal |
|||
|
Absenteeism |
|||
|
Including: |
|||
|
a) next and additional |
|||
|
b) illness and childbirth |
|||
|
c) leave due to study |
|||
|
d) other absences, allowed |
|||
|
Loss of working time during the working day for valid reasons |
|||
|
Including: |
|||
|
a) breaks for feeding children |
|||
|
b) shortened working hours for teenagers |
|||
|
Planned efficient fund |
|||
|
working hours |
Table 8 - Planned and reported time budgets for one worker
|
Planned year |
Reporting year |
||||
|
worker |
In % of working time |
||||
|
Calendar Fund |
|||||
|
Weekend |
|||||
|
Nominee fund |
|||||
|
Absenteeism |
|||||
|
Including: |
|||||
|
a) due to illness |
|||||
|
b) another vacation |
|||||
|
c) maternity leave |
|||||
|
d) fulfillment of government and public duties |
|||||
|
e) leave for students |
|||||
|
e) absenteeism respectful reasons |
|||||
|
Useful (real) working time fund |
|||||
|
Breaks within the working day, hour |
|||||
|
Average working day, hour |
|||||
|
Working day budget for the year, hour |
|||||
2. 3 Disadvantages of existing remuneration systems in the organization
The company's existing remuneration systems are characterized by some shortcomings. One of the main disadvantages is that sometimes wages do not fully or at all correspond to the final results of labor. Also, bonus payments do not always correspond to the results of work performed. There are situations in an organization when the manager himself distributes bonuses and there is a possibility that the bonus depends on the subjectivity of the manager’s assessment. The results of work can be collective, and payment based on results can be individual. Therefore, the organization faces the question of whether results need to be individual or whether collective remuneration should be introduced?
In my opinion, if you separate the results of labor from the collective component, then there will be a loss of stability and collective unification. There are many examples when enterprises paid attention to private interests, and then tried to establish certain forms of associations. Almost all existing systems do not focus their attention on collective cooperation and, in connection with this, there is a disunity of workers, or rather managers and managed. Therefore, another question arises: how to stimulate the growth of labor productivity and quality? What should you use for this? Modern economics characterized by the fact that it is approached by remuneration systems that are based on profit sharing and income distribution. The advantages of a flexible remuneration system, which is called “Profit Sharing,” is that the share of profits is determined in advance and a bonus fund is formed from it, from which employees will receive regular payments. The amount of profit is determined by the level of profit and the overall results of commercial and production activities. In some cases, such a system involves payment of all or part in the form of shares. In the “Profit Sharing” system, bonuses are paid for success and achievement of any specific results of the organization’s production activities. Bonuses will be awarded in proportion to wages, taking into account the employee’s work and personal characteristics: absence of absenteeism and tardiness, length of service, rationalization activities, loyalty to the company, etc. But this system also has a number of disadvantages. The amount of bonuses will depend on many external factors that affect the amount of profit the company receives. These factors do not directly depend on the organization's employees. When applying such a system, it must be taken into account that increased profits may depend on market factors and be short-term in nature. And therefore, the company's profitability indicator will not always be the best basis for increasing wages. With such a system, the company has the risk of suffering losses, because the company will be affected by many factors that are beyond its control.
The income distribution system assumes that bonuses will depend on indicators such as quality and economy of materials, labor productivity, and reliability of the work performed. As a result, the employee will feel a close relationship between the profit margin and the results of his work.
The first system above has a positive impact on reducing staff turnover and attracting new employees. The second system mainly affects the stimulation of increasing quality, increasing productivity, and reducing possible costs. After analyzing this information, we see that the income sharing system has a greater advantage. It can be concluded that the shortcomings of the existing system are due to its individual characteristics. And if they are overcome, the system itself will radically change.
3 Improving the company’s remuneration system
3. 1 Stages of choosing the optimal remuneration system
Each company prefers to choose a remuneration system that is based on its needs. There are some rules that will be useful to a company when choosing a remuneration system. And in order for the OKO company to actively and fruitfully develop, it is necessary to apply these basic methods. The remuneration system is usually chosen before the official activities of the organization have yet begun, but if the company is already officially operating, and the remuneration system that was previously established is ineffective, then it can be changed.
There are the following main stages in choosing a remuneration system:
1 It is necessary to create a working group that will assess the effectiveness of remuneration systems for all categories of workers involved in the organization. This will help avoid subjective opinions, unlike situations where one specialist is responsible for the assessment.
2 All company personnel must be divided into groups for which a remuneration system will be established. In this case, it is necessary to make a choice whether the organization will use one system payment or it will be made according to categories of workers, and different systems will be established for them. If the second option is chosen, then the organization’s employees will have to be divided into groups. One group will include those employees who have the same influence on the company’s results. You can also consider personnel not by groups, but by divisions and departments.
3 The area of responsibility for each group of employees is indicated. On at this stage The company's management must decide what indicators each group of employees can be responsible for - expenses, profit, revenue and much more.
4 The company selects some acceptable remuneration systems for each group depending on its area of responsibility. For example, employees may be responsible for the volume of income and revenue. This evaluates the use of the remuneration system as a bonus system or on a commission basis. If certain indicators are established for groups, then you can introduce a wage system with a bonus when a certain level of selected indicators is achieved.
5 It is necessary to evaluate the quality indicators for each of the selected remuneration systems. For example, how will it be more convenient for an accountant to calculate wages, and under what remuneration system will it be clear on what the amount of payments to employees depends.
6 Rate on a five-point scale the remuneration systems that were selected for each group of workers. Each of the remuneration systems will be analyzed from the point of view of its compliance with the sphere of influence, the specifics of the work and quality indicators.
7 It is necessary to choose such remuneration systems that received maximum ratings. If several systems score the same, then management must determine which HR system will be most effective.
8 The remuneration systems that will be ultimately selected must be recorded in special documents: regulations, collective or labor agreements. Then you need to familiarize each employee with the remuneration system that has been chosen for him.
Appendix A shows a table of the advantages and disadvantages of existing remuneration systems that will help in choosing the required system for the organization.
3. 2 Main directions for improving the in-house remuneration system
Taking into account all the shortcomings, it is necessary to determine the course of development to get out of the wage crisis. It is necessary to restore wages as a real, effectively functioning economic category of a market economy.
The company's first priority is to raise real wages to match labor costs. Wages are not only an economic category, but also a social one, because it guarantees a person a certain social status. The cost of reimbursing the price of labor cannot but include social needs employee, except for expenses that reimburse expenses for food, clothing, housing, education, and medical care. We can conclude that in order to resolve issues of the level of minimum and average wages, it is necessary to focus on the minimum consumer budget, which is calculated differentially for each category of workers and types of production.
In order to overcome the wage crisis, it is necessary to gradually eliminate the high differentiation in the field of labor for all categories of workers, as well as restore an important function - stimulating the workforce. Differentiation in remuneration is increasing and therefore it is necessary to find ways to establish and maintain rational proportions of remuneration for complex and simple work, respectively.
The existing systems in the OKO company must be created in such a way as to ensure the unification of employees within the organization, and not their disunity; it is necessary to stimulate cooperation, and not conflicts between workers. In new remuneration systems, it is necessary to reduce the level of basic pay, which is determined by length of service, and increase the amount of payment, which is proportional to the salary.
The entire company's focus needs to be on productivity and product quality. It is necessary to create and define effective requirements for the organization of production: the tasks and responsibilities of each employee must be completed on time or ahead of schedule; product quality must come first; try to carry out all work at the lowest cost for the company; you need to use the most modern and effective tools, methods and technologies. Personnel policy should contribute to the stability of personnel, opportunities for their further development, as well as a favorable socio-psychological climate in the team.
It is planned to introduce a system of material interest, which is built as a system of employee investment and is aimed at high efficiency based on objective assessment criteria introduced by the organization and comparison of costs and results of labor. It is necessary to introduce an approach where wages take on the function of investment as labor, because investments are much broader than traditional wages, they are not limited to it and are not limited to it. Their main source is final income. The system of material incentives for employees should be based on the level of qualifications of the work performed, and not on the qualifications obtained by diploma. Encouraging creativity and initiative of employees should be presented as payment “for personal contribution” and “service to the organization.” The company itself establishes a certain set of criteria by which the assessment of personal contribution and merit will be established. Merits and contributions mean the manifestation of the employee’s personal qualities, his workplace, evaluation of the results of its activities. Although payment for an employee’s personal contribution is in conflict with the collective nature of work, it can still be used to assess the employee’s qualifications, taking into account the overall contribution. Collectivism should be the principle of formation of labor encouragement.
The OKO company can use a remuneration system called “floating salaries.” It lies in the fact that employees of the organization are set new salaries every month, and salaries for the next month are determined based on the results of the employees’ work for the previous month. For example, for every percentage decrease or increase in labor productivity when performing certain tasks, salaries are reduced or increased. Or the salaries of employees are formed at the expense of actual profits.
One of the significant problems in the company is lateness, which violates labor discipline. And in order to avoid them, it is necessary to introduce a system of fines that will reduce the percentage of lateness, violations of discipline and increase the efficiency of the company. The fine system may include several methods.
1 Fines - monetary deduction, deduction of bonuses.
2 Workouts.
3 Arrival report. In this case, if certain equipment is available, the time of arrival and departure to work is recorded. The disadvantage is that this method is very expensive and requires large financial investments.
4 “Board of shame” - an information board on which lists of late workers are posted. This method will only be effective if the late employee considers this a problem. The main disadvantage of this method is that it can turn into jokes with colleagues.
5 Conversation. Explanatory work of management with late subordinates, verbal warnings.
6 Reprimands and warnings.
7 Dismissal. An extreme method of influencing workers in cases where the above methods do not work.
3. 3 Calculation of the economic efficiency of the event
Let us calculate the expected economic efficiency for one of the proposed measures. Such an event is the introduction of a system of fines in the company. This event will reduce the loss of working time due to the fault of employees.
Table 9 - Initial data for calculating economic efficiency
1) Definition of time savings:
Evr=(Prv*Chokhv*Fvr)/60,
Evr=(59*10*165)/60=1622, 5 hours.
2) Determination of economy of numbers:
Ech=Evr/Fch,
Ech = 1622, 5/1320 = 1, 22 people.
3) Determination of changes in labor productivity of workers covered by the event:
Ppt=(Ech*100)/(chohv-Ech);
Ppt=(1, 22*100)/(10-1, 22)=122/8, 78=13.9%, that is, the labor productivity of workers covered by the event will increase by 13.9%
4) Determination of changes in labor productivity of workers for the organization as a whole:
Ppt=(Ech*100)/(Chtotal-Ech);
Ppt=(1, 22*100)/(27-1, 22)= 122/25, 78=4, 73
5) Determination of the increase in production volume:
Ppr=(Evr*100)/(Fch*Chokhv);
Ppr=(1622.5*100)/(1320*10)=162250/13200=12.3%, that is, production volume will increase by 12.3%.
6) Determination of wage savings:
Ez/p=Ech*Fsr,
Ez/p =1, 22*1617, 12=1972, 8864 rub.
7) Determination of savings based on deductions to extra-budgetary funds: Evn. f. =Ez/p*K,
Evn. f=1972, 8864*0, 36=710, 2391 rub.
8) Determination of savings from cost reduction:
Esn. seb. =Ez/p+Evn. f
Esn. seb. = 1972, 8864+710, 2391=2683, 1255 rub.
9) Determination of the annual economic effect:
Eg=Esn. seb. -En*Zed,
Eg=2683, 1255-0, 15*0=2683, 1255.
Thus, we can conclude that the option I proposed to improve the organization of remuneration (elimination of lost working time due to the fault of the employee) is economically feasible, since the expected economic efficiency obtained by calculation is positive.
Conclusion
In the context of the transition to a market economy, organizations are looking for new models of remuneration that give scope for the development of personal material interest.
In the process of working on my course work and when studying the literature on this issue, it turned out that wages are directly related to the labor market. Wage - essential element income of an employee, a form of economic realization of the right of ownership to the resources of labor activity belonging to him.
The state has an indirect impact on the amount of wages, both for an individual employee and on the size of the organization’s wage fund through the tax system and the establishment of a minimum wage.
The nature of social labor is diverse and its results cannot be taken into account on the basis of any single criterion for determining the amount of remuneration to an employee. Therefore they apply various ways establishing the dependence of the amount of remuneration on its results. The remuneration system is a method of measuring the amount of remuneration for work with its results or costs.
The remuneration system in the example of the company under consideration is not ideal, and the infringement of the rights of employees does not provide the effect of motivation and satisfaction of the need for remuneration for one’s own work.
The remuneration system should stimulate increased productivity and have a sufficient motivational effect. The growth of wages should not outpace the growth rate of productivity.
The main direction for improving the entire system of organizing wages is to ensure a direct and strict dependence of wages on the final results of the economic activities of the team. In solving this problem, an important role is played right choice and rational application of wage forms and systems.
Accounting for labor and its payment should be ensured by:
Monitoring labor productivity; quantity and quality of labor; use of working time; wage fund;
Implementation of modern and correct calculations for wages;
Obtaining data on labor and its payment for planning and operational regulation;
Timely preparation of accounting and statistical reporting on labor and its payment.
The solution to the problem can only be the choice of a more suitable, modern remuneration system that takes into account the situation within the company.
In addition to wages, the organization provides its employees with various additional benefits. Today, benefits such as paid vacations, sick leave, health and life insurance, and pensions are integral part any permanent job. The perceived value of fringe benefits depends on factors such as age, marital status, family size, etc. For example, people with large families tend to be very concerned about health care and life insurance benefits, and older people about severance benefits. for retirement, young workers - immediate receipt of cash. Research shows that rewards influence people's decisions to join a job, their absenteeism decisions, their decisions about how much they should produce, and when and whether to leave an organization. Many studies have found that the number of absenteeism and employee turnover is directly related to satisfaction with the remuneration received.
To encourage employees in the company to achieve even greater achievements, it is necessary to develop an effective system of additional rewards, for example:
1) payment of bonuses for performing particularly important work;
2) allocation of bonuses for achievements in work;
3) increase in bonuses for performance results;
4) increase in wages for length of service;
5) giving thanks to the best employees;
6) holding informal events and team meetings to ensure a psychological atmosphere in the team;
7) establishing an increase in the percentage of earnings when the employee reaches a certain amount of money in the total profit of the organization;
8) holding competitions among employees.
These measures are aimed at increasing the level of productivity, improving the quality of work and reducing their cost, completing production tasks on time, adhering to work schedules, improving labor organization, and stimulating workers to work.
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Appendix A
Table 10 - Advantages and disadvantages of existing remuneration systems
|
Remuneration system |
Advantages |
Flaws |
|
|
Time-based |
Ease of payroll calculation, complete salary rates and information on hours worked |
Salary does not depend on performance results |
|
|
Time-based premium |
Easy to calculate; when distributing bonuses, work results can be taken into account |
Bonuses do not always depend on performance results. Bonuses are distributed by the manager, and therefore there is a possibility of subjective assessment |
|
|
Piecework |
The amount of wages clearly depends on the quantity of products produced; there is an obvious interest of workers in increasing labor productivity |
The quality of the products produced is not taken into account, only the quantity |
|
|
premium |
For employees whose work results can be assessed in physical terms |
The same as the piecework wage system. In addition, if bonuses are set for product quality, the employee is interested in producing more products without compromising its quality |
The same as the piecework wage system, provided that bonuses are not related to the quality of the products produced |
|
Bonus |
For employees on whom the level of profit or income of the organization directly depends |
Employees are directly interested in increasing the organization's revenue or profit |
The growth of revenue and profit does not always directly depend on the employee |
|
Remuneration for commission |
For employees on whom the organization’s income directly depends |
The same as for the bonus remuneration system. The higher the income received, the higher the salary. The employee himself can approximately calculate his salary |
The same as the bonus wage system |
|
Tariff-free |
For specialists working in a group and performing similar functions |
Group members are interested in higher salaries, which means collective work becomes more effective |
It is difficult to assess the contribution of each member of the group. There may be an "equalization" |
|
Group bonus system |
For specialists working in a group united to complete a specific project |
The same as for the non-tariff wage system. Specialists will be more willing to participate in a new project and help each other to complete it as quickly as possible |
The same as for the non-tariff wage system |
|
Remuneration with bonuses for knowledge and competence |
For specialists whose work requires special knowledge, skills and a high level of professionalism |
Specialists are financially interested in improving their professional level |
Competence and knowledge do not always coincide with effective work |
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