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This document explains why managing employee data in Excel is difficult, the benefits of managing employee data, and key points for selecting a system to improve HR operations. It provides detailed explanations on topics such as "the limitations of managing data on paper or in Excel" and "the benefits of centralizing employee data management." This is a useful read, so please take a look. 【Contents】 ■ Limitations of managing data on paper or in Excel ■ The "three barriers" to employee data management ■ Benefits of centralizing employee data management ■ What to do in employee data management ■ Points to consider when choosing a system *For more details, please download the PDF or feel free to contact us.
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Free membership registrationThis document explains that the key point for improving the efficiency of personnel transfers is achieving "optimal placement." It provides a detailed explanation of topics such as "Why are personnel transfers necessary?" and "Why do personnel transfers take an enormous amount of time?" The content is presented in an easy-to-understand manner by item, making it a useful reference. We encourage you to read it. 【Contents (partial)】 ■ Concerns regarding personnel transfers ■ Why are personnel transfers necessary? ■ Why do personnel transfers take an enormous amount of time? ■ Causes of inefficiency in personnel transfers ■ Solutions for improving the efficiency of personnel transfers *For more details, please download the PDF or feel free to contact us.
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Free membership registrationThe main calculation logic for bonus decisions consists of three types: calculation method, point method, and fixed amount method. As a premise, the decision of whether to give a bonus or not, and how to determine the bonus, is entirely at the discretion of the company. Therefore, while I will introduce these three methods of bonus determination, it is perfectly acceptable to use entirely different methods for determining bonuses. On the other hand, the purpose of providing bonuses is important, as it defines the objectives behind the bonus distribution. ▼If you want to know more about the personnel evaluation system▼ Please download the '【Complete Edition】HRBrain's Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationPerformance-based pay and results-based pay are compensation methods that determine salary based on performance and results, commonly referred to as a "commission system." Performance and results are evaluated and reflected in the base salary. One advantage is that it increases motivation towards achieving results. A disadvantage is that it can lead to less stability in living conditions compared to job-based or role-based pay. ▼If you want to learn more about the concept of determining base salary▼ Please download the '【Complete Edition】HRBrain's Manual for Designing Performance Evaluation Systems' from the link below!
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Free membership registrationJob-based and role-based pay are concepts associated with the job grade system and role grade system within the grading system. Since the base salary is determined by the job or role being undertaken, individuals in the same job or role will have the same base salary. One advantage is that it creates motivation to aim for higher grades. A disadvantage, in contrast to age and length of service pay, is that it can make it slightly more difficult to achieve stability in living conditions. ▼ If you want to learn more about the concept of determining base salary ▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!
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Free membership registrationFunctional pay is fundamentally a concept associated with the functional grade system, similar to age-based and length-of-service pay within the grading system. However, unlike age, it determines the base salary based on functional abilities, meaning that as job performance capabilities improve, the base salary increases. Functional pay needs to evaluate the individual's abilities and reflect that in the base salary. Generally, a salary range is set for each grade, and the base salary is increased by the established salary pitch (the increment in salary) based on the level of evaluation. ▼If you want to learn more about the concept of base salary determination▼ Please download the '【Complete Version】HRBrain's Manual for Designing Performance Evaluation Systems' from the link below!
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Free membership registrationThe age-based pay and length-of-service pay are concepts associated with the functional grade system within the grading system, and they determine the base salary based on age and years of service. Since age-based pay and length-of-service pay are determined by the accumulation of age and years of service, regardless of performance evaluations, there is no need to consider a linkage with the evaluation system. One advantage of having age-based pay and length-of-service pay is that it contributes to a more stable living situation, which leads to long-term talent retention. A disadvantage is that salaries increase without any effort, and regardless of performance, age-based pay and length-of-service pay do not increase, making it difficult to motivate employees. ▼If you want to know more about the concept of determining base salary▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!
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Free membership registrationThe main point of discussion is how to handle the base salary, bonuses, allowances, retirement lump-sum payments, and corporate pensions. In short, it can be summarized into one point: how to structure the components of wages. Within this, the main points of discussion in designing the personnel evaluation system are the base salary and bonuses. This is because the components of wages that may be linked to the grading system and evaluation system are the base salary and bonuses. This document will explain the main types of base salary determination and the types of bonus determination. ▼If you want to know more about the personnel evaluation system▼ Please download the '【Complete Edition】HRBrain Style Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationEven if you are designing a personnel evaluation system in-house, we recommend consulting with a consulting firm or labor and social security attorney for the compensation system alone. This is because, in cases where salary reductions may occur as a result of designing the personnel evaluation system, there is a risk of litigation, and if proper salary simulations are not conducted, it may become difficult to control labor costs. Our company offers consulting services for the design of the compensation system alone, as well as consulting to identify concerns in the system through salary simulations of the compensation system. ▼If you want to learn more about personnel evaluation systems▼ Please download the '【Complete Edition】HRBrain Style Personnel Evaluation System Design Manual' from the link below!
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Free membership registration"360-degree evaluation" is a method of assessing an individual from multiple perspectives, not only from their supervisor but also from subordinates, colleagues, and evaluations from other departments. It is primarily used for behavioral and emotional assessments. Since it allows for the evaluation of everyday behaviors that may not be visible to supervisors alone, it broadens the range of behaviors being assessed. Additionally, because evaluations are conducted by multiple people, fairness and objectivity are generally enhanced. ▼If you want to learn more about personnel evaluation systems▼ Please download the '【Complete Edition】HRBrain's Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationIn "Competency Evaluation," evaluation criteria based on behavioral traits are established, and the level of proficiency in those behavioral traits is assessed. It is mainly used for behavioral evaluation, ability evaluation, and emotional evaluation. There are two methods for creating evaluation criteria based on behavioral traits: one method uses the common behavioral traits of high performers as the evaluation criteria, and the other involves creating a theoretical model for achieving results and using the necessary behavioral traits for executing that model as the evaluation criteria. ▼If you want to learn more about personnel evaluation systems▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!
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Free membership registrationOnce you have decided what and in what proportion you want to evaluate, the next step is to select the evaluation method, which is "how to evaluate." Here, we will explain three representative evaluation methods. There is the "Management by Objectives (MBO)" method, which involves setting goals as a group or individually and evaluating based on the achievement rate and the process of achieving those goals. Additionally, there is the "Competency Evaluation," which establishes evaluation criteria based on behavioral characteristics and assesses the level of those characteristics. Furthermore, there is the "360-degree evaluation," which evaluates from multiple perspectives. ▼If you want to learn more about personnel evaluation systems▼ Please download the '【Complete Edition】HRBrain's Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationRegarding evaluation weights, if the desired behaviors for employees and the company culture we want to create are clear, we can make decisions without much hesitation. It is common to increase the proportion of performance evaluation as one moves up to higher grades, but if the intention is that "higher grades should focus on management," then one approach is to increase the evaluation weight for management-related behaviors, or alternatively, to incorporate the performance of subordinates into the evaluation of their superiors and increase that evaluation weight. ▼If you want to learn more about the personnel evaluation system▼ Please download the '【Complete Edition】HRBrain's Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationWhat kind of corporate culture do you want to create? This means envisioning the behaviors you want from your employees. Considering what kind of company culture you want to build based on the actions of each individual employee is the key point in designing a personnel evaluation system that permeates the organization. There are several frameworks for thinking about organizational culture, and we select them according to our clients' needs. 【Competitive Values Framework】 ■ Innovation Culture: A culture that values cultural transformation and creativity. ■ Market Culture: A culture that values market competition (winning in the market). ■ Family Culture: A culture that values familial intimacy and a sense of camaraderie. ■ Bureaucratic Culture: A culture that values organizational stability and control. ▼ If you want to learn more about the evaluation system ▼ Please download the '【Complete Edition】HRBrain Style Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationThe evaluation system is a management tool with strong influence. Employees generally perform their duties with the expectation of being evaluated, so the purpose of "what kind of behavior we want from employees" is clarified and reflected in the evaluation system. For typical employees, two evaluation criteria can be considered: sales figures and KPIs (such as number of visits, number of proposals, number of orders) that contribute to generating sales. [Example for Sales Positions] ■ If you want them to generate sales figures through creative methods regardless of the approach: - Focus on sales figures ■ If you want them to visit each client properly and conduct sales according to a specific model: - Focus on KPIs that generate sales ▼ If you want to know more about the evaluation system ▼ Please download the '【Complete Version】HRBrain's Human Resource Evaluation System Design Manual' from the link below!
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Free membership registrationThe evaluation criteria can be broadly divided into four categories. To determine what to evaluate, two perspectives to consider are clarifying "what kind of behavior we want employees to exhibit" and "what kind of corporate culture we want to create." The "evaluation targets" are the "employee behaviors" and "corporate culture" that we want to create, and we think about the "evaluation targets" by working backward from the desired "employee behaviors" and "corporate culture." 【Evaluation Criteria】 ■ Performance Evaluation ■ Behavior Evaluation ■ Ability Evaluation ■ Emotional Evaluation ▼ If you want to learn more about the evaluation system ▼ Please download the '【Complete Edition】HRBrain's Human Resource Evaluation System Design Manual' from the link below!
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Free membership registrationThere are mainly two types of definitions for promotion: the graduation method and the admission method. For lower grades, the graduation method is often used, while for higher grades, the admission method is generally applied. Regarding demotion, it can be considered in cases where "no improvement is seen despite multiple improvement guidance from the company" or "when it is significantly inappropriate." It is also important to determine how the above judgments are made through a specific process. If the decision is made solely by management, there may be dissatisfaction due to a lack of understanding from the field. Therefore, it is common to incorporate both field judgment and management judgment into the process. **[Definition of Promotion]** ■ Admission Method - Partially meets the expected roles of the next higher grade + fully meets the expected roles of the current grade ■ Graduation Method: Fully meets the expected roles of the current grade ▼ If you want to know more about the grading system ▼ Please download the '【Complete Edition】HRBrain's Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationIn the case of a competency-based grading system, it will specify "has the ability to do 〇〇"; in the case of a job-based grading system, it will specify "performs the job of 〇〇"; and in the case of a role-based grading system, it will specify "takes on the role of 〇〇." When specifying these details, it is necessary to choose words that are easy for employees to understand and that do not allow for different interpretations. It is also important to devise ways to prevent any ambiguity in interpretation. If the terms are not common language, there are options to either describe them more specifically or to deepen the understanding of each term through training and other means. 【Items to Specify】 ■ Competency-based grading system: has the ability to do 〇〇 ■ Job-based grading system: performs the job of 〇〇 ■ Role-based grading system: takes on the role of 〇〇 ▼For those who want to know more about the grading system▼ Please download the '【Complete Edition】HRBrain's Manual for Designing Performance Evaluation Systems' from the link below!
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Free membership registrationAs criteria for dividing levels, there are factors such as seniority, skills, and roles. Let's decide on the definitions for categorizing levels according to which grading system is used. The number of levels is generally considered to be between 7 and 13, depending on the size of the company. Consider the current hierarchical structure of positions in the company along with the anticipated future structure, and choose the best number for your organization’s present and future. 【Levels】 ■ Less than 100 employees: 7-8 levels ■ 100 to less than 1000 employees: 9-11 levels ■ More than 1000 employees: 10-13 levels ▼ If you want to learn more about grading systems ▼ Please download the '【Complete Edition】HRBrain's Manual for Designing Personnel Evaluation Systems' from the link below!
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Free membership registrationThe job grade system is a grading system based on the difficulty of the tasks performed. It is known as a job-based grading system, which was originally mainstream in U.S. companies, but has been increasing in Japan in recent years. Since it evaluates what kind of tasks are being performed rather than abilities, employees in the same role receive the same salary. Compensation is determined by the difficulty of the tasks, making it easier to set, and it is suitable for developing specialists. 【Advantages】 ■ Less fluctuation in labor costs ■ Clear roles make it easier to hire talented individuals ▼If you want to learn more about the job grade system▼ Please download the '【Complete Edition】HRBrain's Manual for Designing Performance Evaluation Systems' from the link below!
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Free membership registrationThe competency level system is a grading system based on the job performance abilities acquired through years of service. The content of the requirements definition states "has the ability to do XX." To evaluate the ability to perform various tasks cultivated through multiple departmental transfers, there may be differences in salary even if the same job is held. In terms of compensation, this system tends to follow a seniority-based structure, making it suitable for developing generalists. It has advantages in securing talent for the long term and facilitating departmental transfers. 【Advantages】 ■ Long-term talent retention ■ Ease of departmental transfers ▼ If you want to know more about the competency level system ▼ Please download the '【Complete Version】HRBrain's Manual for Designing Personnel Evaluation Systems' from the link below!
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Free membership registrationHere is an introduction to the risks that arise when a personnel evaluation system is not in place. In cases where there are more than 20 employees, there may not be immediate risks, but as the company grows, the risk of employee turnover emerges. During organizational changes, the reforms may only be superficial (soft aspects), and the changes do not become institutionalized. In the relationship between supervisors and subordinates, there is a risk that a system for responsibly developing subordinates will not be established. 【Risks】 ■ Risk of employee turnover ■ Reforms not being institutionalized ■ Lack of a development system ▼ If you want to know more about personnel evaluation systems ▼ Please download the '【Complete Edition】HRBrain Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationIf you want to create a hierarchical structure in an organization with a superior and subordinate relationship, building a personnel evaluation system is important. In the relationship between seniors and juniors, the act of caring for juniors depends on the goodwill of the superior. By establishing a framework of superior and subordinate as a system, the responsibility to support subordinates arises. Additionally, by building relationships as a system, it is possible to create a relationship where troubles that were previously handled individually can be discussed before they escalate. [Key Points] - Establish a framework as a system - Responsibility to support subordinates arises - A relationship where troubles can be discussed before they escalate ▼If you want to know more about the personnel evaluation system▼ Please download the '【Complete Edition】HRBrain Style Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationIntroducing or revising the personnel evaluation system is effective when transitioning from mid-career hiring to new graduate hiring or during changes in employees' job roles and behaviors. When initiating change within an organization, it is necessary to implement changes on both the hard side (such as organizational systems and rules) and the soft side (such as fostering a development mindset and ensuring time for managers to focus on development). To achieve this, it is important to clarify "who will conduct the development" and "how development will be evaluated," while simultaneously establishing a development framework. Additionally, changes on the soft side, such as creating value in development that employees want to engage in and reducing other tasks, should also be implemented. [Key Points] - Hard Side: Organizational systems and rules - Soft Side: Development mindset and ensuring time for managers to focus on development ▼If you want to learn more about the personnel evaluation system▼ Please download the '【Complete Version】HRBrain's Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationIf a company with more than 50 employees does not have a performance evaluation system, there is a high possibility of dissatisfaction with employee evaluations and discrepancies in evaluations by supervisors. We believe it is necessary to design a system before that happens, and we advise that "once you have more than 20 employees, consider designing a performance evaluation system." 【Points】 ■ A performance evaluation system is not something that can be mastered immediately; it takes time to get used to its usage. ■ It should be regularly reviewed and developed alongside the company. ■ To maintain the company's growth speed, it is important to design the system early. ▼ If you want to know more about performance evaluation systems ▼ Please download the '【Complete Version】HRBrain's Performance Evaluation System Design Manual' from the link below!
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Free membership registrationThe compensation system refers to a system that determines employees' salaries and bonuses based on certain criteria. The criteria in the compensation system are defined by the grading system and evaluation system. When designing it, it is important to refer to the average salaries in the industry, sector, and region, but it is crucial to envision the employees' lives, including how many years it takes for them to be promoted and what their salaries will be, when setting compensation. [Key Points] ■ Criteria are defined by the grading system and evaluation system ■ Set salaries with an image of employees' lives ▼ If you want to learn more about the compensation system ▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!
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Free membership registrationAn evaluation system is a framework that establishes a method for quantifying the work performed by employees and the results they produce based on specific criteria. The evaluation system is important not only for the proper operation of the grading and compensation systems but also from the perspective of talent development and fostering corporate culture. When designing an evaluation system, it is essential to envision the purpose of the evaluation and the kind of organization you want to create. 【Quantification】 ■ Work performed by employees ■ Results produced by employees ▼ If you want to learn more about the evaluation system ▼ Please download the '【Complete Edition】HRBrain's Personnel Evaluation System Design Manual' from the link below!
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Free membership registrationA grading system is a framework that categorizes and ranks employees based on their abilities, duties, roles, and so on, serving as the basis for authority, responsibility, and treatment when performing tasks. In other words, it can be said that "employees" are "distinguished" into "several levels" based on "certain criteria." Typical grading systems include the skill qualification system, job grade system, and role grade system. Additionally, when designing a grading system, it is necessary to define the promotion and demotion system in addition to the content of the grading system. [Grading System] ■ Skill Qualification System ■ Job Grade System ■ Role Grade System ▼ If you want to know more about grading systems ▼ Please download the '【Complete Edition】HRBrain's Manual for Designing Personnel Evaluation Systems' from the link below!
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Free membership registrationThe personnel evaluation system is a system that evaluates employees based on their contributions to performance and the tasks they carry out, reflecting the results in their treatment. The personnel evaluation system mainly consists of three elements: "evaluation system," "grading system," and "compensation system." In a broader sense, the personnel evaluation system includes all systems based on evaluation, such as job rotation, succession planning, and development frameworks. 【Personnel Evaluation System】 ■ Grading System ■ Evaluation System ■ Compensation System ▼ If you want to know more about the personnel evaluation system ▼ Please download the "【Complete Edition】 HRBrain Personnel Evaluation System Design Manual" from the link below!
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Free membership registrationWe offer the "HRBrain Organizational Diagnosis Survey," which can achieve improvements in engagement, reduction in turnover rates, and reform of organizational culture and philosophy dissemination. We comprehensively collect strengths and challenges from all experiences and interactions employees have with the organization. We define the employee journey from recruitment to resignation across 8 areas and 16 items. By understanding not only employee satisfaction but also expectations, we can implement measures with appropriate priorities. 【Features】 ■ Understanding Expectation/Reality Gaps: Prioritization of issues ■ Customizability: Question modifications/Distribution group settings ■ Cross-analysis: Department × Age × etc. ■ Individual Dashboard: Detailed analysis such as turnover trends ■ Comparison with Average Scores of Other Companies: Possible comparisons with companies of similar size/industry *For more details, please download the PDF or feel free to contact us.
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Free membership registrationWe offer 'HRBrain Talent Management,' which enables centralized management of human resource data and seamless utilization of that data. You can freely build your own original database. Flexible permission settings are available, allowing for information sharing with the field. Additionally, it is possible to streamline and visualize a vast amount of operational management tasks in the cloud, as well as to centrally manage and visualize skills and qualifications for talent development. [What can be achieved (partial list)] ■ Analysis and utilization of human resource data ■ Streamlining of evaluation operations ■ Skill management and talent development ■ Onboarding and offboarding procedures, year-end adjustments ■ Employee satisfaction surveys and engagement improvement ■ Improvement of turnover and leave rates *For more details, please download the PDF or feel free to contact us.
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