1) The document discusses classification and career systems in Europe, noting a diversity of legal frameworks and systems between countries. 2) It then examines the case of Georgia, noting issues like low and non-transparent pay, disintegrated pay regimes, and lack of a clear job classification methodology. 3) Recommendations are made to improve Georgia's system, including establishing a more competitive and unitary pay scale, enhancing transparency of salary groups and scales, and relying less on performance-based pay elements.

1. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Classification System, remuneration
and careers
Heinrich Traumüller
Austria
Tbilisi, Georgia
20 January 2014

2. I. Classification and career
systems in Europe
II. The case of Georgia
III. Recommendations
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU

3. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
I.
Classification and career systems
Trends in the European Public
Sector

4. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
• Large diversity of legal frameworks
• employment structures:
nomination (Germany, Spain, Ireland, France,...) vs.
individual job contracts (Sweden, UK, Italy,
Finland,...)
• both systems can include a similar career path (Italy,
Austria , Germany, ...)
• in some countries, nomination and job contracts are
quite different (UK,...)
• career systems (France, Spain, Ireland) vs. position
systems (Nordic countries)

5. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
• Range of careers is diverse (Ireland: small number of
careers, more in the larger countries like Germany,
France, Spain, UK and Italy)
• Promotion within the career is usually organized
through competition
• Some countries have strict upper limits (ceilings) for
promotions (Germany, Austria, Ireland, Spain,...)
• General trend: more flexibilty in HRM autonomy
(budget ceiling, but wide management autonomy in
manning levels and qualification of the staff)
• Possibility of fast track (UK, in combination with a
specific HRD program, also in France and Ireland)

6. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Classification methodologies
Summarily
+ easy to handle
- error – prone
- results difficult
to compare
- intransparent
criteria
- low acceptance
Analytical
- complex to handle
- higher costs
+ valid, reliable results
+ transparency
+ flexibility
+ high acceptance
+ conventions

7. Concept of work and function
knowledge
mental activity
responsibility
Input
Output
Copyright 2009 Hay Group. All Rights Reserved
100% of a function are affected by
knowledge : mental activity : responsibility
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU

8. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Job evaluation
1 2 3
responsibility responsibility
responsibility
mental activity
mental activity
knowledge
Positions exist to produce
Results.
To achieve these results
the incumbent has to
focus on problems and to
develope solutions.
Therefore the incumbent
needs certain knowledge
and experiences coming
along with the way and
complexity of the
problems to solve and
deliver results.
Copyright 2009 Hay Group. All Rights Reserved

9. Copyright 2009 Hay Group. All Rights Reserved
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU

10. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Public Pay systems
• 2 main components: basic pay and
additional elements (performance,
seniority, family situation, job content,
overtime, place of residence, wage gap to
the private sector ...)
• Keep it simple !

11. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Basic pay
• simply structured salary scales
• clear trends:
 shorter career paths
 higher entry salaries, lower exit salaries
 all in salaries for top positions
 top positions are awarded only for a limited
period
 pay bands for autonomous organizations

12. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Additional elements
• clear trends:
• reduce allowances !
• strong impact of the specific
job content
• some elements of performance
pay

13. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Public sector pay scales / Austria
• Pay scales list exact amount of remuneration
in the remuneration group
• Remuneration groups:
- general administration
civil servants: A1 – A7
employees: v1 – v5

14. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Grades / Austria
• Grades within each remuneration group
• Austria: 7grades within the group „general
administration:
 A 1 higher service
 A 2 upper grade of service
 A 3 special service
 A 4 qualified medium service
 A 5 medium service
 A 6 qualified ancillary service
 A 7 ancillary service

15. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Remuneration groups & grades
/ Austria
- judges (R1a – R3)
- prosecutors (St 1 – St 3)
- university teachers
- teachers (l ph – l 3)
- executive authority (E 1- E 2c)
- armed forces (M BO 1- M BUO 2)
- health care (K 1 – K 6)

16. General administrationAjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU

17. Judges and prosecutors
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU

18. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Teachers

19. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
II.The case of Georgia
• Low level of remuneration
• Low level of transparency
• Different remuneration regimes
• Disintegration
• Bonuses without clear criteria
• No collective negotiations
• Classification: unclear methodology

20. AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU III. Recommendations
• More competitive salaries
• Unitary pay system
• Enhance transparency (salary groups
& scales)
• Enhance fairness (minimize
performance related pay elements)
• Non-monetary incentives

21. Thank you for your attention !
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU