Rate Ranges and Job Grades

BarbieW

I attended BLR's webinar today on using salary data and the salary finder on this site. There was some information on job evaluation systems and setting up rate ranges. I'm wondering if any of you have recommendations on systems you use in your company?

HR36

We grade jobs based on necesary skills, education, and experience. Grades are then grouped into ranges, each grade having an overlapping rate range. Allows for flexibility between grades and pay. We do adjust the rate ranges every few years to account for COLA changes.

GRiegler

My experience is to first establish what components of jobs, across the board, that you wish to evaluate. One of the methods is to assign a range of point values for each component. Each company is different. Some common ones I have used are MANAGEMENT or INDEPENDENT ACTION, TECHNICAL COMPETANCE, FINANCIAL RESPONISIBILITY, TRAVEL. Some can have more weight than others. Assigning a point value is one way to create a relative value between jobs.

 

It is always good, in my opinion, to compare with others in your industry/business with whom you compete for talent. All of your evaluation activity must fit into pay grades combined with a system that will deliver the compensation based on what your organization wants. My preference is to deliver it on merit as long as you have a performance management system that differentiates performance taking pay grades into account.

I have found that annual comparison to "the outside"(like position/geography/industry)is necessary to stay even or ahead(if that is where you decide you want to be as an organization)compensation-wise. if not done annually, so you can make a conscious decision to move the ranges or not, you can fall behind, not snag the best hires and lose people because you are not competitive.  GAR