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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 All
    Thank you so much for all of your comments. I am going to propose we use just 4 bands. Junior, Experienced, Supervisor/Manager, and Senior Management.
    The salary ranges will be quite broad within the bands and we will then use the appraisal system to move people up through the bands so the two systems work together. So basically someone with years of hands on experience will have the same opportunity to start at a pay level as someone with a relevant qualification for example.
    What do you all think?
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  • Hi All
    Thank you so much for all of your comments. I am going to propose we use just 4 bands. Junior, Experienced, Supervisor/Manager, and Senior Management.
    The salary ranges will be quite broad within the bands and we will then use the appraisal system to move people up through the bands so the two systems work together. So basically someone with years of hands on experience will have the same opportunity to start at a pay level as someone with a relevant qualification for example.
    What do you all think?
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