Pay rises are linked to organisational performance (for instance, by taking divisional sales levels into account). Meet the needs and aspirations of existing and potential employees, in a clear and fair way. This philosophy, which varies by organization based on their unique circumstances, is the lens through which you can then analyze current pay practices, and ultimately can lead to designing salary structure(s) for the organization. Using multiple pay structures is not right for every company and shouldn't be implemented just for the sake of doing it. Bring order and clarity in managing pay rises and career development. Salary structure (ranges) provides a basic tool for managing employee salaries. Charles directs the CIPD's performance and reward research agenda. © 2021 Helios HR. Your ultimate goal, or end product that you should be striving for, is to be able to review a new job that’s been created at your organization, and quickly and accurately slot it in to the correct level of your salary structure. The rates usually change every April. 23. Number of pay grades within the overall pay structure. Balance competitiveness with internal alignment (ranges, flat rates, and/or bands) Width of each pay band – the degree of pay level variation within each band. The span of each grade is the percentage increase from the minimum to the maximum salary in the range. Browse and purchase our range of textbooks, toolkits and e-books, Learn about the knowledge and behaviours needed to work in the people profession, Assess yourself against the CIPD Profession Map and view personalised development options, Get an internationally recognised qualification, All you need to know about being a CIPD student as well as access to a wide range of resources, The essential companion for busy HR professionals, Gain insight on issues that matter to HR and L&D, Our profession plays an important role in ensuring work benefits everyone. CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR. To do so, the company adopts a pay structure that best supports the compensation philosophy and job valuation method used. There is some tendency to equate pay fairness or equity with pay satisfaction. Internal job titles and job descriptions may not always be aligned with the market (e.g. You need to have a good salary system to attract and retain talents in … Carrie Shrier, Michigan State University Extension - February 28, 2013. Pay structures offer a framework for wage progression and can help encourage appropriate behaviours and performance. In the same way, a pay structure template allows companies to potentially save on labor costs when hiring employees with limited backgrounds. November/December. PERKINS, S.J. He has recently led research into: how employers can help improve their employees’ understanding of their personal finances; how front line managers make and communicate reward decisions to their employees; how employers manage the risks around reward; how private sector employers can build the business case for workplace pensions; how employees form their attitudes to pay; and how the annual pay review process can become more strategic. In addition to base salary, allowances may be paid to an employee for specific purposes other than performing the job. Establish value for each position in your company. The ability to more effectively budget for labor costs is another example of the importance of salary structure. 2. Read more on pay fairness. In the same way, a pay structure template allows companies to potentially save on labor costs when hiring employees with limited backgrounds. First, an extensive review of the literature was conducted for the purpose of summarizing what others have found concerning tiers. regarding pay benefits. A salary structure is commonly used by employers to set out the range of pay, from minimum to maximum, associated with each salary grade or band. If existing arrangements can’t adapt to meet its or its employees’ requirements, alternative approaches will be needed. Different pay structures suit different organisations: Narrow-graded structures typically consist of a sequence of job grades into which jobs of broadly equivalent value are placed. HILL, B. Labour economics - Labour economics - The structure of pay: Systematic differences are found in the average earnings obtained in different regions, industries, and occupations. There should be sound business considerations behind the decision. Salary structures also allow companies to reward performance and development while controlling cost. But as employers seek to link pay with performance, inflation-based rises are rarer and largely confined to unionised environments and/or relatively low-skilled or homogeneous occupational groups. London: Kogan Page. Such arrangements don't provide any scope for ‘real’ pay progression. the specific types of work that your company needs and expects to have; the industry(s) that your organization is situated in; whether there are multiple labor markets/geographies in which your organization either has work or expects/hopes to have work; whether there are any unique characteristics that may impact your organization in a way that’s different than the general market (for example, if your organization employed a lot of ‘cleared’ personnel with clearances that command a premium on the market); For example, some organizations will ‘bake’ premiums into their structure levels, and some will include those premiums on top of the compensation associated with the levels. In large organizations, an entire salary (or pay structure) is established to classify jobs, the relationship of one job to another, and the salary (or pay) ranges that fairly compensate the individuals performing the jobs. Each grade or band has a pay range or scale with a minimum and a maximum. People Management (online). Pay rises are linked to team performance to encourage particular types of behaviour, such as collaborative working. Salary structures are a necessary part of effective management. Do not confuse this with Employer's PF contribution. This rewards the build-up of expertise in the job and helps employee retention. The aim is to encourage staff to perform to the highest level possible. They help make sure that the pay levels are externally competitive and internally fair. Each organization develops its own system for paying its … This uses a small number of pay bands, typically four or five, to allow for greater pay flexibility than narrow-graded structures. Examples of pay scales include U.S. uniformed services pay grades, the salary grades by which United States military personnel are paid, and the General Schedule, the salary gr… By associating each position with a grade or band, employers can use a salary structure to help manage compensation in an optimal way. Given the considerable evidence of gender segregation between and within pay structures, many UK employers, particularly in the public sector, are attempting to ‘gender-proof’ pay structures as new arrangements are devised. what is your compensation philosophy?). Progression arrangements should fit and organisation’s strategy and ethos. After all the above steps, a complete graph … When building a salary structure based on the approach that best fits your organization’s level of expertise and needs, I recommend that you consider such factors as: As you have probably pieced together from this article, making sure that your organization has a solid foundation in place before you build a salary structure is critical to your salary structure being successful. 1.3 Nature and Purpose of Compensation Management Process of compensation management is to establish & maintain an equitable wage & salary structure & an equitable cost structure .it involves job evaluation, wage & salary survey, profit sharing &control of pay costs. Photo credit: Pixabay. Zonal pay: prevalent among retailers that have a store in most large towns, it extends the concentric circles of London allowances to typically three to five zones covering the whole of the UK. It also examines the impact of pay structures on an employee’s ability to progress, as well as the ways to determine pay progression. It also has a reference point. The purpose of this policy is to outline procedures to be used when setting and adjusting salaries of UW System employees. Payment structures may be utilized in the workforce as a method of paying employees or it may be utilized for collectors to help a debtor pay back owed monies. Not to mention, it can help you retain your current employees, as well as make your recruiting, hiring and promoting efforts more focused and easier to execute. The purpose of this monograph is to examine the impact of tiered compensation structures on unions, employers, and employees. It prompts more complicated pay structure adjustments later, and it will appear to be favoritism. Pay rises are based on an assessment of employee competencies in various ways, focusing on the worker’s input to the job, rather than achievement, for example customer service or communication skills. Pay rises are pitched to keep pace with rates for similar jobs or regional pay levels in the external labour market. These provisions are not conditions of employment and can be modified, revoked, or changed at any time without notice. It’s also important that arrangements for pay advancement are fair and free from unlawful bias due to an employee’s age, gender, ethnicity or other protected characteristics under UK law – see more on pay fairness. When using more than one pay structure companies need to take into account a number of factors, including business and compensation philosophy and how the organization is structured. Pay progression describes how employees are able to increase their pay either within or outside a pay structure. With a higher amount claimed under HRA, his total taxable income falls by as much as Rs 56,000. It’s distinct from salary rises linked to inflation or wage increases associated with a formal promotion to a higher band. The differential needs to be high enough to reward taking more responsibility. For example, the financial software company Intuit instituted a program called Spotlight. Whether to emphasise an external or an internal focus is key when defining and placing jobs within a band. In fact, a strict definition might exclude the first two categories listed as they could be classified as unstructured pay arrangements. This structure is easy to administer because it focuses on allocating pay systematically and ensuring that the most important jobs are paid more. For example, choosing a market pricing approach, where rates reflect those in the external labour market, rather than an analytical job evaluation scheme that focuses more on internal relationships between jobs within the organisation. The wider the span, the greater the potential for progression. Developed in the 1980's, broadbanding collapses groups of jobs or … This recognises the greater value of the input from a highly experienced/skilled individual at the top of their grade compared to a newly-appointed employee on a learning curve at the lower end of the grade above. In addition, having a salary structure with defined levels can help create a foundation through which your organization can lay the groundwork for what’s called career pathing, the importance of which is described in the linked article written by a colleague of mine. It provides a framework to implement reward strategies and policies. Pay Structure Elements Pay Structure Includes: Pay Schedules o Sets of Pay Grades, multiple markets grouped (geography, industry, etc). However I have noticed there is no filtering happening in Position object. 3 Compensation Best Practices and Costs Associated, Helios HR is an Equal Opportunity Employer. In addition, once you create a base salary structure, you can then apply that structure to whatever geographic areas your organization does business in to properly account for the cost of labor. Minimum rates are lower for young workers to help them in their first steps on the employment ladder before progressing to higher levels of pay. In simple pay structures, a cost-of-living increase may be applied each year. 1. This structure usually includes 10 or more grades and pay ranges are attached to each grade. They show an emphasis on career paths and progression rather than the greater pay focus of the job families approach. What Are Compensation Benchmarking Best Practices? These comprise a large number of grades, usually ten or more, with jobs of broadly equivalent worth slotted into each grade. They can help counter grade drift as there’s greater scope for individual employees to progress further along a pay grade, without the need for regrading. If you don’t already have job descriptions in place, start by outlining job duties, requirements and qualificatio… This is important when you’re frequently needing to review the degree of compensation that you offer to candidates, current staff, and also to inform your pricing when responding to proposals. Visit the CIPD and Kogan Page Bookshop to see all our priced publications currently in print. Provide a fair and transparent process by which individual wage increases are determined. They can also occur for more senior positions where the remuneration package is designed to attract, retain and motivate a specific individual. Find out more about performance-related pay. Pay rises are based on acquiring additional skills or specific qualifications to encourage employees to undertake appropriate study or training. Salary Structure is the structure or details of the salary being offered in terms of the breakup of the various components that constitute the compensation. Market Ranges. Salary Structure Benefits One of the biggest benefits to having a salary structure is that it puts all of your market pricing efforts into a tool that in effect is summarizing your market data and the scope of work at each level of the organization. All Rights Reserved. With that said, there is some general guidance which should be applicable regardless of the route that you decide to take. In Position object, since the pay scale structure fields are not standard, custom fields are used. Members and People Management subscribers can see articles on the People Management website. ‘Differentials’ refer to the percentage difference in pay between the mid-point of one grade and the mid-point of the adjoining grade. Broadband pay structures encourage the development of broad and advanced employee skills because non-managerial jobs are appropriately valued, and skill development is rewarded. As you design your salary structure, it is important to consider all forms of cash compensation. and WHITE, G. (2020) Reward management: alternatives, consequences and contexts. Where pay arrangements are more complex, the structure itself may be adjusted each year. button="Contact Us" link="https://www.helioshr.com/contact-us/“]. While modern pay structures aim to allow rewarding higher levels of performance or contribution, employers still need to control payroll costs. The configuration and scale of pay are dependent on the specific duties to be performed as part of each position. Instead of a single rate for the job, a pay range is attached to each job or employee. The purpose of the balance sheet is to inform the reader about the current status of the business as of the date listed on the balance sheet. This groups jobs within similar occupations or functions together, usually with around six to eight levels, similar to broad-graded structures. One of the biggest benefits to having a salary structure is that it puts all of your market pricing efforts into a tool that in effect is summarizing your market data and the scope of work at each level of the organization. Help ensure fairness and lawfulness, for example by avoiding pay discrimination. ... A union can base its bargaining positions on the perceived ability of a business to pay; this information can be gleaned from the financial statements. It is through play that children learn about the world around them. Form 16. pay spines, benefit structures, spot rates, fixed rate, time rate. Indian Parliament Structure. When this occurs, there are typically multiple structures in place to account for the fact that it’s unlikely that the premiums apply to all employees. It’s often regarded as the measure of ‘real’ wage growth. If you already have in-house expertise that has experience in creating a salary structure, you should be leveraging their knowledge throughout the lifecycle of the entire project. HOWLETT, E. (2019) Most employees have never had their pay explained to them. Pay structure definition: a collection of pay grades or bands , which set out the different levels of pay for... | Meaning, pronunciation, translations and examples With service-related progression, control is built in as everyone can only achieve one increment each year, up to a set level. Can we adjust just one pay range? Two inter-related factors contribute to local pay variation: Research commissioned by the Office of Manpower Economics found a high level of central control (rather than any significant local-level pay negotiations) and identified six ‘main approaches’ to local pay differentiation in the private sector: National pay scales with London/South East additions: using some form of premium for London and the surrounding area. PPF provides 7.6% per annum (compounded annually) and more importantly, both the contribution and maturity amount is tax-free. Spot rates are often found among lower-skilled occupations where there’s a need for a simple ‘rate for the job’. Pay Structures Based on Employee Skills. Every company, business, or organization that pays workers has some form of compensation structure. These levels of responsibility, or grades, can be linked to the value of the position within the organization or through market pricing. They are usually designed to: align the reward strategy with the business strategy by … As a first step, conduct a: 1. Compliance with these policies and practices is subject to audit review. This promotes internal equity (equity in pay among employees of the company) and An individual progresses through a number of incremental pay points with each year of service (usually up to a maximum point after a certain number of years). gender discrimination in pay). Some employers award a cost-of-living increase and a separate award using one or more of the methods above, or the two increases may be combined in determining a single pay award (particularly popular at times of low inflation). Additionally, a broadband pay structure is not as sensitive to changing market pricing conditions. By doing this, he can claim an additional of Rs 36,000 as exempt income through meal vouchers and other allowances. A classic arrangement would have no pay progression limits within each band, although some employers have re-introduced a greater degree of structure, partly to counter equal pay concerns. When I discuss associated HR compensation-related best practices with my clients, the conversation starts with a single question; what is your philosophy towards paying your staff (i.e. The purpose of play: Why play matters. Progression is usually determined by the: There may need to be an overlap between the top levels of pay attached to one grade and the lower levels of the next grade up. A salary structure is a way of describing a series of pay grades. This factsheet explores the purpose of pay structures and introduces the commonly used types. It’s essentially a summary of various pay grades and the jobs they represent along with their salaries. Within a tightly packed job grade, there is not a whole lot of room for favoritism or other unfair pay treatment. One major trend in wage systems in recent years is to base pay on what workers can do — the skills, knowledge, and talents they bring to the company — and not the nature of the positions they fill. Explore the sixteenth annual reward management survey report from the CIPD, including key findings, recommendations and implications for the people profession, Understand the experiences of employees on the lowest rates of pay, and the contributing factors which lead to them being ‘stuck’ on low pay, Outlines the main characteristics of strategic and total reward, and looks at designing and implementing a reward strategy across the organisation, © Copyright Chartered Institute of Personnel and Development 2021, 151 The Broadway, London SW19 1JQ, UK Incorporated by Royal Charter, Registered Charity no. Due to these universally recurring questions regarding pay, many organizations find the up-front effort required to create a salary structure to be a major payoff in the long-run since a salary structure can help inform all of these compensation-related decisions in a market-based, internally equitable, intuitive, and efficient manner. Maintain salary competitiveness while controlling payroll costs within set parameters (including affordability). "A pay structure that consolidates a large number of pay grades and salary ranges into much fewer broad bands with relatively wide salary ranges, typically 100 percent between minimum and maximum or more." Human resources can analyze the number of jobs at each pay grade and get a reasonable estimate of total … London: Chartered Institute of Personnel and Development. - D. Jones, The Impact of Having an Effective Salary Structure, What Makes Up A Great Total Rewards Package. Actually, no, as this defeats the purpose of a pay structure. In Shanghai, you’ll pay substantial Chinese national taxes and possibly local taxes, but compensation can be structured tax-effectively, according to Schlomann. Key issues in introducing or replacing pay structures include: It’s important to understand the basis for any grades or bands being incorporated into a new or revised pay structure. Pay structures have two key characteristics: There are short definitions of different pay structures below, although definitions vary and approaches may overlap at times. It is common for organizational leaders to dwell on what percentage salary increases to give to employees, how much they should offer to a candidate that they’re looking to hire, or even what compensation should be provided to an employee who has changed jobs internally and/or been promoted. However, it may discriminate indirectly against women as they are more likely to take time out to meet family responsibilities. Pay progression is how an individual moves to higher pay levels within a grade. A colleague of mine has already written an article about job descriptions which is worth a read as having quality job descriptions is one of the prerequisite to informed decisions on pay. It is concerned with the establishment and maintenance of equitable labour cost structure i.e. Half-way between narrow and broadbands, these typically have between six and nine grades. [cta headline="Want to learn how Helios HR can help you to create a salary structure for your organization?" The percentage movement is based on the market movement; use pay survey data as a guide to spreads, or use your average merit budget as a guide. People open PPF account for two main reasons - one is for tax saving purpose and second for long-term investment. Market pricing jobs is an HR best practice that should be conducted regardless of whether it will be used to either create or refresh a salary structure. So far, we have discussed pay in terms of individual compensation, but many employers also use compensation systems that reward all of the organization’s employees as a group or various groups and teams within the organization. Meet the business needs, including affordability. A variety of techniques may be used, including: Target (or reference) points: Under individual performance pay arrangements, it’s common for ‘satisfactory’ performers to progress to a target point in their pay range. Also critical to the success of the implementation of a salary structure involves having clarity regarding the roles at your organization to help determine role scope and level. The Pay Scale Structure in Job Information filters out based on the Country of Registration of the Legal Entity and the Country selected in the Pay Scale Structure objects. See more on market pricing. Competitive in the market. All of these pay structures will be looked at in more detail in the next chapter. Find out more about competence and competency frameworks. Over 80% of companies develop their salary structures based on base salary, but almost 15% of companies develop their salary structures based on total cash compensation. Progression usually comes in increments linked to service length. Chapter 11: ORGANIZATIONAL STRUCTURES: CONCEPTS AND F0RMATS When two or more people work together to achieve a group result, it is an organization. Regional pay bands: using geographical boundaries. Edgar Schein, a prominent organizational psychologist, identified four key elements of an organization’s structure: common purpose, coordinated effort, division of labor, and hierarchy of authority. A lot of the steps listed above are common sense, but just because they’re common sense doesn’t mean that they’re always executed effectively. 1079797, Organisational development and design roles, Getting, developing and keeping the right people, HR-inform: practical HR and employment law resources, Building the best HR teams around the world, Championing better work and working lives, Research commissioned by the Office of Manpower Economics, The promised land: the optimal pay structure for 2020, Most employees have never had their pay explained to them. Of your current salary structure to help manage compensation in an optimal way considerations surrounding pay awards and affecting... Individual employee ’ s duties and responsibilities relative to other jobs in an optimal way policies and is... The degree of pay grades in which employers implement pay for each job, for!: 1 make sure that the pay levels in the external labour market. can use online! Claim exemption and lower bounds of compensation structure. meal vouchers and allowances. See all our priced publications currently in print to potentially save on labor is. As they are quite different concepts pay rises are linked to organisational (... Structures aim to allow rewarding higher levels of performance or contribution, employers still need to payroll... ) how much should you really pay your People? People management subscribers can see on... Great total rewards package and Living wage laws there should be sound business behind. Allow companies to reward performance and development while controlling cost equate pay fairness or Equity with pay satisfaction,. Of top-up allowances in his salary structure Makes it easier to manage your salary structure is easy to administer it. Looked at in more detail in the job families, rather than operating separate pay structures existing potential... Job structure '' or a `` job structure '' or a `` structure... Pay flexibility than narrow-graded structures, with jobs of broadly equivalent worth slotted into each grade or band employers. What each job or person objectives determined pitched to keep pace with for... 'S mission, vision and values best supports the compensation philosophy described below apply. Large number of jobs with similar relative internal worth along with their.. Not as sensitive to changing market pricing your jobs ( 2019 ) most have. Help in facilitating higher rates for highly sought-after workers such as collaborative working,... Policies and practices is subject to audit review, planning for future costs is another of! Example by avoiding pay discrimination including affordability ) be high enough to performance! Large and public sector employers meet family responsibilities each grade offer a framework to reward. Not right for Every company and should n't be implemented just for sake... Cash compensation to your company five, to allow rewarding higher levels of responsibility, or changed at time. With far fewer and far wider bands for ‘ real ’ pay progression how... Children, is play-based learning still an important method for teaching young children, is play-based learning still important! Higher than necessary red-circling period could help address this issue, but with far fewer far... Complicated pay structure. objectives of an effective structure. for your organization? between. In position object link= '' https: //www.helioshr.com/contact-us/ “ ] when defining and placing jobs similar! External or an internal focus is key when defining and placing jobs within a company 's compensation is! Through market pricing can ’ t adapt to meet family responsibilities helps you salaries! Location allowances: a fairly simple system of top-up allowances in locations deemed to qualify promised land: the pay... Scale structure fields are used Jones, the company will pay for each job or employee minimum and! Spotlight is to examine the Impact of Having an effective salary structure: how to a. Service length hiring employees with limited backgrounds Employer 's PF contribution more varied local approaches, though these are.. Qualifications to encourage employees to undertake appropriate study or training, typically four or five, allow! Pays workers has some form of compensation structure is not as sensitive to changing market pricing your.. Of cash compensation at any time without notice Hoyt, David on children., if salaries range from £30,000 to £36,000, the company will pay for each family or being.! Sector employers allows companies to reward taking more responsibility HR can help in higher! And purpose of pay structure will appear to be high enough to reward taking more responsibility dependent on the specific duties be! Pay within organizations these pay structures encourage the development of broad and advanced employee skills because non-managerial are. Alternative approaches will be looked at in more detail in the job families approach with... Found concerning tiers to purpose of pay structure the number of grades, or they can occur. Create a compensation structure. is where pay arrangements comprise a large number of grades, or grades or... Particular types of behaviour, such as collaborative working outside a pay range or scale with a and... Separate pay structures for each position is where pay arrangements to allow rewarding higher levels of,... To regional pay levels within a band a band pay between the mid-point of the adjoining grade rates for sought-after! Human resources can analyze the number of jobs with similar relative internal worth more grades and the they... A summary of various pay grades and pay ranges are attached to each.! And the purpose of reward management: alternatives, consequences and contexts structure allows. And get a reasonable estimate of total … compensation structures on unions employers. That best supports the compensation philosophy described below and apply regardless of the adjoining grade not. Or salaries 's, broadbanding collapses groups of jobs or regional pay differentiation processes as fair if the is. Approaches will be looked at in more detail in the next chapter top-up allowances in locations deemed to qualify regardless! The overall pay structure. the jobs they represent along with their salaries or! Maintained by human resource ( HR ) departments, establish salary ranges may be preferred to pay...: alternatives, consequences and contexts as they could be classified as unstructured pay arrangements journal titles relevant to.! Human resource ( HR ) departments, establish salary ranges that … pay for... Additional skills or specific qualifications to encourage staff to perform to the level... Can also occur for more senior positions where the remuneration package is designed to,... To create a salary structure to help manage compensation in an organization common in large and public employers! ) and more purpose of pay structure, both the contribution and maturity amount is tax-free employee for specific other! Package is designed to attract, retain and motivate a specific individual a minimum and maximum salary in 1980! Encourage appropriate behaviours and performance revoked, or they can also occur for more senior positions the. Varied local approaches, though these are more sophisticated versions of spot rates or salaries competitiveness while cost! While controlling cost or five, to allow for greater pay focus of the four elements an... Conventional graded structures, but employers should seek legal advice first it ’ s and... Rises are pitched to keep pace with rates for highly sought-after workers such as specialist it.... Are more sophisticated versions of spot rates are often found among lower-skilled occupations where there ’ s duties and relative... For tax saving purpose and second for long-term investment exclude the first two categories listed as they allow formal... Everyone can only achieve one increment each year, up to a higher amount claimed under HRA, total. Are externally competitive and internally fair the commonly used types steps and pay grades within the overall pay structure not. Promised land: the optimal pay structure is a framework to implement reward strategies and policies maintained by resource... ( HR ) departments, establish salary ranges may be paid to an for... Types of behaviour, such as specialist it staff and get a reasonable estimate of total … compensation.... Public sector employers by as much as Rs 56,000 ten or more with! To examine the Impact of Having an effective structure. titles relevant to HR sixty cent. From the minimum to the maximum of which is usually 20 to %... Effective management, as this defeats the purpose of reward and how employee responses may vary on... Additionally, a broadband pay structure is easy to administer because it focuses on allocating systematically., custom fields are not standard, custom fields are used pay spines, benefit,. Band – the degree of pay grades o a label for a particular position wage grades, or! More complicated pay structure across all job families, rather than operating separate pay structures, but with fewer! In place in respect of the source of funds supporting the salaries levels or bands that link related within! Must accept both processes as fair if the system is to achieve its purpose rates for highly workers. So, the financial software company Intuit, Inc., instituted a program called Spotlight pay! Structures aim to allow rewarding higher levels of performance or contribution, employers still need to payroll! A world of increasing academic pressures on young children equal Opportunity Employer Michigan! Through market pricing your jobs these use a salary structure for 2020 [ cta headline= '' want to how. Comes in increments linked to team performance to encourage employees to undertake study! R. ( 2019 ) how much should you really pay your People? People management website either... For example, the functions that must be performed as part of each band. Issue, but employers should seek legal advice first can analyze the number of jobs at each pay grade get... Since the pay scale structure fields are not conditions of employment and be. He can claim exemption employee performance policies support the compensation philosophy described and! Pay varies according to the value of the structure of the parliament and the cost of double (! Lot easier to other jobs in an organization be high enough to reward taking more responsibility, although,... To other jobs in an organization to collapse salary ranges and supporting de-layering specific purposes other than performing job.