The approach to determining the base salary is strongly linked to the concept of the grading system.
The 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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The "HRBrain" series we offer consists of seven services, including "HRBrain Talent Management," organizational diagnosis surveys, pulse surveys, personnel evaluations, 360-degree evaluations, labor management, and an internal chatbot. It is a cloud service that enables one-stop solutions for streamlining HR operations and centralized management and utilization of human resource data. In addition to further promoting digital transformation (DX) in the HR field, we are expanding our services to contribute to human capital management and ESG management. *As of November 8, 2022.