Professional Documents
Culture Documents
Grade and Pay structures provide the framework for managing pay
although grade structures are increasingly used as part of nonfinancial reward processes
Grade Structures
Consist of a sequence or hierarchy of grades, bands or levels into
which jobs are placed
Various structure exists for e.g (M1-M8), ( 3 13)
Single structure with a sequence of narrow grades or relatively few
broad bands
Grades / bands / levels can be defined in many ways or combos like:
o Job evaluation points i.e. jobs are allocated to a grade, band or
level if their job evaluation scores fall within a range or bracket
of points
o In words or designations i.e describe the characteristics of work
carried out in the jobs that are positioned in each grade or level,
define key activities, competencies, knowledge and skills
o By reference to benchmark job or roles that have already been
placed in the grade / band / level
Pay Structures
Provides a framework for managing pay. Grade structure becomes a
pay structure when we associate ranges and pay brackets to them.
Contain the organizations' pay ranges or scales for jobs
Define the different levels of pay for jobs or group of jobs by
reference to their relative internal value as determined by job
evaluation