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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?

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  • We are just about to embark on job evaluation, banding and pay grading!!

    We currently have a system where people have been paid what managers have thought they should be paid, with a lot of discontent in the business over 'my job is more important than theirs', 'I have more skills than them', etc, and I think a clear structure will allow us to remove that.

    It will provide transparency and justification for the salaries we pay.

    We are going to try to minimise the number of bands, as I agree, 10 is a lot. Perhaps a more simplified structure with room within the grades to allow some options of salary based on the experience and qualifications (if these are required for the role).

    By removing a grading system, Robey rightly points out you are at risk of equal pay issues.
  • in reply to Ashleigh
    Hi Ashleigh,

    How has your project of job evaluation, banding ad pay grading gone? I am embarking this journey in my new workplace and would perhaps some knowledge share from you on what went well, not so well, what would you do differently.
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