1. Grade and pay structures

2. Ian
Could you add one more like this but with a woman rather than a man?
Thanks
Michael
GRADE STRUCTURES
A grade structure consists of a sequence or hierarchy of grades, bands or levels into which groups of jobs which are broadly comparable in size are placed.

3. PAY STRUCTURES
A pay structure defines the different levels of pay for jobs or groups of jobs by reference to their relative internal value as determined by job evaluation, to external relativities as established by market rate surveys and, sometimes, to negotiated rates for jobs. It provides scope for pay progression in accordance with performance, competence, contribution or service.

4. GUIDING PRINCIPLES: GRADE AND PAY STRUCTURES
Grade and pay structures should:
• be appropriate to the culture, characteristics and needs of the organization and its employees;
• facilitate the management of relativities and the achievement of equity, fairness, consistency and transparency in managing gradings and pay;
• provide scope as required for rewarding performance, contribution and increases in skill and competence;
• clarify reward, lateral development and career opportunities;
• be constructed logically and clearly so that the basis upon which they operate can readily be communicated to employees;
• enable the organization to exercise control over the implementation of pay policies and budgets.

5. Types of grade and pay structures

6. MODEL OF A NARROW GRADED STRUCTURE

7. MODEL OF A BROAD GRADED STRUCTURE

8. MODEL OF A BROAD GRADED STRUCTURE
K k k k k k k

9. Broad band
Broad grade

10. MODEL OF A JOB FAMILY STRUCTURE
Job families

11. MODEL OF A CAREER FAMILY STRUCTURE
JE points
Career families

12. A PAY SPINE
Pay spine

13. MODEL OF SPOT RATE STRUCTURE

14. MODEL OF INDIVIDUAL JOB RANGE STRUCTURE

15. e reward grade and pay structures survey 2007
TYPES OF GRADE AND PAY STRUCTURES
Individual job ranges
30%
Multi-graded
23%
Broad-banded
23%
Spot rates
23%
Broad-graded
21%
Job family
18%
Pay spine
18%
Career family
14%
n = 98 (private sector 67%, public sector 33%)
nb (1) 44% had more than one structure
nb (2) 43% of senior executives had individual job grades or spot rates compares with 28% of other staff

16. Designing grade and pay structures

17. E-REWARD GRADE AND PAY STRUCTURE SURVEY RESPONDENTS’ DOS AND DON’TS
do communicate and be transparent
do consult, consult, consult and then decide on the system that fits the business strategy
don’t underestimate the time and cost involved
don’t be surprised if your staff are completely under whelmed by your efforts
don’t expect quick results!
do keep it simple

18. CONCLUSIONS
link to the company strategy – how will
the structure help the business?
plan the development/introduction – it will take
time
involve line managers from the outset
keep the structure simple to allow flexibility
have a clear communication plan
think through how salaries will be managed,
jobs will be evaluated, the annual salary
planning process will operate