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HRBrain

Establishment2016
addressTokyo/Minato-ku/3-5-19 Mita, Sumitomo Realty & Development Tokyo Mita Garden Tower 5F
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How to Create an Evaluation System: What Kind of Corporate Culture Do You Want to Build?

Consider what kind of company culture you want to create based on the actions of each individual employee!

What 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!

  • Personnel and Labor

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How to create an evaluation system: What kind of behavior do you want employees to exhibit?

Let's think about what kind of actions we want to take and decide on the evaluation criteria!

The 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!

  • Personnel and Labor

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Regarding the evaluation criteria of the evaluation system.

Choosing what to evaluate is a very difficult and important phase!

The 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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Criteria for promotion and demotion to each grade in the grading system.

It is common to incorporate both on-site judgment and management judgment into the process!

There 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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What abilities, results, or behaviors are required at each level of the grading system?

It is also important to devise ways to avoid differing interpretations! Either describe more specifically or deepen the meanings of each term.

In 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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How many levels in the hierarchy are appropriate?

Choose the better option for the present and future of your organization! Depending on the size of the company, 7 to 13 levels are common.

As 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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What is a job grading system?

The content of the requirements definition is "to perform the duties of 〇〇"! It is suitable for developing specialists.

The 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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What is a job grade system?

A system based on the Japanese-style lifetime employment! It is suitable for developing generalists.

The 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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Risks arising when the personnel evaluation system is not in place.

Risks of employee turnover associated with company growth, and the lack of a development system, etc.!

Here 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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Timing for designing a personnel evaluation system: When you want to change the organization.

When initiating change within an organization, transformation is necessary on both the hard and soft sides!

Introducing 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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What is a reward system?

Determining employee salaries and bonuses based on criteria! Imagining employees' lives.

The 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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What is an evaluation system?

Designing while imagining the purpose of the evaluation and what kind of organization we want to create.

An 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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What is a hierarchy system?

"Employees" distinguished into "several levels" based on "some criteria"!

A 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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What is a personnel evaluation system?

It mainly consists of three elements: "evaluation system," "grading system," and "compensation system"!

The 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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HRBrain Organizational Diagnosis Survey

Organizational and individual issues are clear at a glance! Quantitatively score the organizational state across 8 areas and 16 items.

We 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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HRBrain Talent Management

A system that everyone in HR, management, and on-site can master! A "coaching-type" support system.

We 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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