Appraisal methods for HR, appraisal methods for HR departments

Here are a few points for your reference!

The human resources department needs to start from the basis of remuneration, the design of remuneration and remuneration enhancement of three levels to arrange the remuneration system, so that the design of the remuneration system reflects the principle of fairness, so as to meet the overall needs of the company's development.

Remuneration basis and standard setting

The reason for employees to get paid is nothing more than two points: first, to meet the requirements of the post; second, in accordance with the requirements of the post to complete the specific performance of the work. But what is the specific requirements of the post, how to evaluate the completion of specific work achievements, the company's human resources department needs to complete the compilation of job descriptions, job description and performance evaluation indicators and a series of basic work.

The human resources department first needs to break down the company's business activities, to determine the corresponding jobs, and in the form of job descriptions of job responsibilities and qualifications clearly down. The definition of job duties, the company's requirements for job qualifications together, is the basis for determining the fixed remuneration of jobs.

At the same time, in order to evaluate the completion of specific jobs, the human resources department needs to establish an employee performance appraisal system, including performance appraisal indicators, ability appraisal indicators and attitude appraisal indicators. By evaluating the performance of employees in their positions, the company determines their contribution to the company's performance, which in turn determines the rate of employee bonuses. Employees may or may not exceed the basic performance requirements of their position, which directly affects the amount of bonus they receive. The results of the employee performance evaluation are the basis for determining the performance bonus for the position.

Compensation structure and compensation design

The compensation system established on the basis of job descriptions and the performance appraisal system, in general, includes the forms of fixed compensation + performance pay + benefits.

Fixed remuneration must be designed so that the level of employee remuneration ensures relative internal and external equity.

Internal equity refers to the remuneration can reflect the value of each position to the overall performance of the company's contribution, in general, the human resources department needs to assess the position from three aspects: 1. position on the knowledge and skills requirements 2. position on the problem-solving ability of the requirements of the position 3. position to assume the size of the responsibility. The HR department uses the results of the analysis to determine the range of pay differentials and to establish a pay grade ladder for the position. One of the implicit meanings of internal equity is that the pay gap between jobs should be reflected.

External equity is whether the pay is competitive in the market. On the one hand, the company's salary level of each position needs to be adjusted with reference to the salary level of the same industry to ensure that the company can recruit suitable talents under this salary level; on the other hand, the human resources department also needs to understand the salary changes of competitors at regular intervals to ensure that the company's salary level maintains dynamic competitiveness.

However, since it is impossible to assess the value of a position with complete accuracy, companies often introduce a pay-for-performance system, with the aim of making the pay structure fairer, more competitive and more flexible, thus stimulating the motivation of employees. Performance-based pay refers mainly to performance bonuses determined by the performance appraisal results of employees - employees engaged in the same job may ultimately earn significantly different incomes as a result of different performance.

In addition to this, the company may also decide to grant year-end bonuses depending on the annual performance.

Benefits are a necessary complement to the compensation system, and can effectively cushion the relative dissatisfaction of employees with fixed pay and performance pay. For example, most foreign-funded companies reduce employee turnover by offering favorable welfare policies, and human resources departments should also make reference to the welfare levels of other companies to develop a company welfare system.

Employee development and compensation enhancement

A reasonable compensation system should be able to promote the rising level of employee compensation. The human resources department must clarify the career development routes for different positions, improve the training system, and provide opportunities for employees to compete for jobs or further advancement.

On the one hand, the HR department needs to take the initiative to implement training programs to give employees the opportunity to improve their skills. Improvement of employee skills is often accompanied by an increase in salary levels and work performance appraisal of the rise, which is particularly important in the assessment of the system of rewards and punishments as the core of the human resources management system. Training can greatly improve the quality of staff, stimulate staff motivation, is an important auxiliary management measures.

On the other hand, the company should provide a fair chance to get on the job, so that the staff career development path is practicable. The company can through competition, the implementation of rotation, regular exchanges and other systems to give employees as much as possible to fight for high-paying jobs. Such as competition, employees have the ability to bid on which position on which position, when the bidding is not when the salary is less than others, there is nothing to say. This competition should not be a one-time, but should be a regular, such as once a year, so that gives each employee equal opportunity, but also drums each employee upward.

I hope the above answer will help you!