#Japan #Tokyo #Harassment Prevention #Employee Evaluation #Salary System

The Critical Order of Salary Systems: A Key to Employee Satisfaction

In modern workplaces, the structure of a salary system can have significant implications for employee morale and productivity. The order in which elements of this system are developed—evaluation, grading, and wages—plays a crucial role. Deviating from the correct sequence can lead to negative outcomes. When wages are developed first without establishing evaluation criteria, it creates uncertainty about raises and pay decreases, leading to workplace dissatisfaction and mistrust.

Understanding the Sequence: Evaluation, Grading, and Wages

The proper order is vital: evaluation, grading, and finally, wages. This sequence ensures that there are clear foundations for how an individual’s performance is assessed, how progression within grades is determined, and finally how those evaluations are translated into pay increases.

1. Evaluation creates the justification for salary decisions. It reinforces the idea that salary adjustments are based on performance rather than arbitrary reasons. Employees feel more secure when they understand that their efforts and achievements are acknowledged and rewarded.

2. Grading establishes levels of employee growth and development. It serves as a roadmap for employees to understand where they stand and what is necessary for advancement. When grading is linked to evaluation, employees can visualize their career trajectories, promoting engagement and motivation.

3. Wages reflect the culmination of the first two stages. When wages are set transparently and justifiably, employees are more likely to feel satisfied with their compensation packages. Predictability in salary increments not only fosters trust in the system but also discourages friction between colleagues that can arise from perceived inequities.

The Consequence of Misordering

A common mistake is putting salary figures above all else without the necessary groundwork. This often results in confusion and frustration. Employees might find themselves questioning: "Why did my salary increase this year but not last?" or "What performance metrics are being used to evaluate me?" Without transparency, discomfort can lead to high turnover rates and a toxic work culture.

The impact is not limited to individual employees; it affects the organization's ecosystem. Trust in leadership erodes, and teams can become fragmented. Clear and effective communication about how the salary system works is essential to mitigate these issues.

Designing for Success: Simplicity is Key

To avoid complications, even smaller companies can implement a simple yet effective salary system. This could include straightforward evaluation criteria, direct links to grading, and transparent wage schedules. Regular simulations based on estimated salary increments can enhance predictability.

Raising Employees’ Confidence

One objective of implementing a salary system is to boost employee confidence. A clear understanding of how evaluations lead to wage adjustments can significantly enhance workplace satisfaction. Knowing there’s a structured path encourages professional growth and commitment.

The Upcoming Seminar: Understanding Salary Systems

To dive deeper into developing effective salary structures, the Clare Human Resources Training Association is holding a seminar aimed at media personnel and interested parties:

• - Date: December 11, 2025, from 12:00 PM to 1:00 PM
• - Location: 6th Floor, Kioicho Head Office Building, 3-12 Kioicho, Chiyoda-ku, Tokyo
• - Focus: The seminar will address:

- Why having a salary table boosts employee assurance.
- Why the evaluation system must be prioritized.
- How to interlink grading systems with salary structures.
- Ways to establish a sustainable salary increment strategy.
- The most straightforward system setup for small companies.

Instructor: Jun Ono, a certified social insurance labor consultant with extensive experience in providing practical training in labor management and harassment prevention. With over 400 sessions delivered, his focus is on real-world applications of legalities within the workplace.

About the Clare Human Resources Training Association

Established in 2023 as a group company of Company SA, the Clare Human Resources Training Association specializes in certification and training related to employment, labor, and harassment prevention. With over 650 professionals certified as Employment Clean Planners, they are committed to educating and protecting the workforce and their families.

For more information, please visit their official website.