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Step 1: Establish overall pay range. Determine a company minimum and a company maximum pay. Step 2: Establish number of grades. Step 3: Establish a range per grade. Step 4: Create pay grade chart. Step 5: Review and amend.
Step 1: Establish overall pay range. Determine a company minimum and a company maximum pay. Step 2: Establish number of grades. Step 3: Establish a range per grade. Step 4: Create pay grade chart. Step 5: Review and amend.
The most basic pay structure used to determine pay within an organization is the pay scale or salary range. This range isn't typically used as a formal pay structure in most organizations. Instead, it is a general range of salaries that those working in a particular field can expect to make.
Pay Bands are a type of pay scale designed to provide more flexibility regarding how much employees are paid. The goal of Pay Banding is to give supervisors the ability to reward performance more. In the GS scale, pay is based education and experience.
The pay grade is generally defined by the level of the responsibilities performed within the job description of the position, the authority exercised by the position, and the length of time the employee has performed the job.
Step 1: Establish overall pay range. Determine a company minimum and a company maximum pay. Step 2: Establish number of grades. Step 3: Establish a range per grade. Step 4: Create pay grade chart. Step 5: Review and amend.
Each group of job positions with similar market salaries makes up a pay grade. A small business may only have three or four pay grades while a large company could have dozens.
A salary grade is a predetermined compensation level for a given position within an organization. The level is expressed through a salary range and typically the levels are set at each individual business entity. The salary grades are frequently meant to be competitive while giving the employer room to negotiate.

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