What is a Grading System?
A Grading System is an important component of effective compensation programs that helps ensure that pay levels for groups of jobs are competitive externally and equitable internally. A well-designed Grading System allows management to reward performance and skills development while controlling overall base salary cost by providing a cap on the range paid for particular jobs or locations. It provides a hierarchal group of jobs and salary ranges within the organization where salary structures are often expressed as pay grades or job grades that reflect the value of a job in the external market and/or the internal value to an organization.
To have a clear grading system in the organization with exact figures of salaries and benefits for each grade based on the Job Profiles.
After finalizing the Job Profiling phase, each job will be evaluated by some factors and the market salary survey that will result the actual weight of the job inside the organization and this will reflect the position size and grade that will be differentiated from positon to other.
7 working days
- Grading System
- Salaries and benefits schemes