A year ago, we implemented a new payroll system. The purpose was to simplify wages, stimulate skills development and motivate employees. This also led to the development of a new HR system as a tool for skills development. With hindsight, we can say that it has succeeded beyond expectations.
Over the years Arver has acquired several companies, which has resulted in different salary systems, policies, routines and even working hours for nearly 170 employees. This resulted in a lack of clarity for employees and failed to motivate them to further develop their skills. Management saw an advantage to sweep away all the old legacy systems and standardize policies and processes. It was then that the idea of the new salary system emerged.
Various payroll systems from other Scania dealers were studied to identify the benefits. Then a project group was formed with participants from both management and staff. A key representative of IF Metall also contributed with valuable experience and knowledge and made sure that the system would be correct and fair.
The project team recommended a payroll system where employees are evaluated and scored according to a number of fixed criteria. Thanks to this, wage adjustments are less arbitrary and it is clear what is expected of the employees and how they can reach the next salary level.
Jens Eriksson, CEO, says:
– The aim of the project was clearly communicated from the beginning; neither workers nor employers would lose on the system, the system would be equal in all areas and stimulate skills development. The system was designed to “build the team before the game.” It would bring together our various departments, public employees and officials. It would be the same bonus for all, and no one would get special treatment. Everyone would have the same goal.
In order to work effectively, we realized that we needed good system support instead of relying on Excel files. It was concluded that the best thing would be to tailor a personal system to work with payroll visions, but also with skills development; a system that supports business and vice versa.
The Örebro company Appivo got the task of building the HR system. In addition to the simple management of payroll visions, it was important for us to get a good overview of the employees’ skills in order to put in resources where needed. The result was a web-based system with a competence matrix that, with clear charts, shows the employee’s distribution of skills. We can easily search employees based on certain skills and can see which employees need training. We can also schedule alerts for certificates that need to be renewed.
– A year later we can say that we have succeeded. We have taken care of some minor initial issues at our follow-up meetings in the project group, but on the whole it has gone very smoothly.