Hourly Pay Grade Schedule
Julia
22 Posts
For those of you who have hourly workers, manufacturing, do you have a pay grade schedule and if so, how do you manage the pay levels each year to keep up with inflation. We haven't made changes to the pay levels in a few years, which means that employees are now exceeding the maximum in their grade level. And because they are high in their pay level, it affects the amount of their merit increase. Advice? Thanks, Julia
Comments
We figured out what we were willing to pay each position and like position, and that is what we pay for that position to start and then we look over time to see where the majority of each level of position is and we decide to raise the level of pay for those like positions. Over time we move the individual based on "performance and meeting a list of individual expectations" to the next level. The most exciting person in a like group of positions based on a work unit, a complex of like work units, and a group of work units over the whole company of 18 work units will be the highest paid and the shining star for others to achieve. We compare ee performance and what we are willing to pay for a particular position based on performance to other individuals. One of my responsibilities as HR is to keep the wage creep under control and never to let there be an individual increase in pay which is out of the recognized wage scale for the position and time of service in that position.
When one starts to get to the top level of a particular group we the company should be looking at that person for a promotion to the next level or we are telling the individual that his/her skills must be improved to the next level or decide to stay at a level and max out on personal wage increases.
It works for us and we very seldom have a wage conflict, everyone knows they must excel to the next level or be prepared to make it at a certain level of pay.
Hope this helps!
PORK
This is done in March from the information I get from the Bureau of Labor Statistics for the previous year. They have their information broken down to different areas of the country, so you can get pertinent info for any particular area of interest.