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Can you work out salaries without a grading structure?

Danielle

Hi All

We are looking at reviewing how we work out salaries. At the moment we have a graded structure from 1 to 10 (mostly up to 7 though as from then it's Director levels) and we work out what grade we want a position to be and pay accordingly within a range.

However our new CEO HATES this method and wants to remove "grades" from roles so that we pay purely by how experienced/ qualified each individual is.

Does anyone have any experience on systems that don't use grading when creating pay levels?

Parents
  • HI Dannielle,

    I have encountered this issue before and I agree with everyone else’s comment.
    You may also need to point out that by putting a strong emphasis on experience may potentially expose your organisation to claims of indirect discrimination, on the grounds of age and sex. The issue with age will be obvious, sex discrimination may arise as the scheme could discriminate against those who have taken maternity leave or career breaks to raise children.
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  • HI Dannielle,

    I have encountered this issue before and I agree with everyone else’s comment.
    You may also need to point out that by putting a strong emphasis on experience may potentially expose your organisation to claims of indirect discrimination, on the grounds of age and sex. The issue with age will be obvious, sex discrimination may arise as the scheme could discriminate against those who have taken maternity leave or career breaks to raise children.
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