Building a pay grade scale Email
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Tuesday, August 25, 2015 05:00 AM

pay gradesWhat is a pay grade scale?
A pay grade scale is a framework of pay ranges related to groups of jobs within your business.

Why does my business need one?
A pay grade scale helps your effectively manage your payroll budget and establish a monetary value for each position. It can be used as a tool to help employees understand the available career path within your organization. When you use pay grades to establish salaries, you can insure that employees are compensated fairly in relation to their peers.

Pay grades can also be used for performance review. When salary is tied to job descriptions and goals, it allows managers to discuss what the employee can achieve to move to a different pay grade.

Are there laws or regulations governing pay grade scales?
No. There aren’t any industry standards or governmental regulations for your business. Pay grades should be customized to meet the needs of your business and employees.

How do I decide what our pay grades should be?
This video can help you get started:

 

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