How to Build and Set Pay Grades and Ranges

Learn how to build and set pay grades and pay ranges that support your organization's compensation strategy.

An organization’s pay structure typically will include pay grades and ranges or bands and should be based on a well-designed compensation strategy. The compensation strategy complements the organization’s total rewards strategy, Human Resources strategy, and company-wide strategy.

INTRODUCTION
Top management’s knowledge and support of the compensation strategy is important to gain organizational support for these important programs. It also ensures organizational consistency of key compensation programs throughout a business and even throughout complex, global operations.

PAY GRADES & STRUCTURE
An effective, company-wide pay structure will represent the overall hierarchy of jobs within an organization. Where pay grades can be managed globally representing an international hierarchy of jobs, pay ranges or bands typically will represent the competitive labor market within a country or the desired labor market.

COMPENSATION MANAGEMENT
The Compensation Management platform can be used to market price your jobs based on highly reliable external market data and has an array of tools to design and implement your overall compensation management plan, including pay grade structures, total rewards, benefits, pay equity, and more.