How to introduce and review a pay and grading structure
AUTHOR: Claire Watt
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- Assess the effectiveness of the current pay and grading arrangements against the objectives that need to be met.
- Make sure that the business case for change has buy-in from the organisation's senior management team and put together a project plan for the changes that are needed.
- Ensure that the organisation has a valid method for evaluating jobs to assess where they should sit in a new structure.
- Think carefully about where boundaries between grades are drawn in the structure.
- Use a pay benchmarking exercise to allocate salary ranges to each band or grade.
- Plan how employees will progress through the grading structure.
- Write to all employees to explain how the new structure affects their grade, pay and terms and conditions of employment.
- Build in an appeals procedure.
- Evaluate and review the structure regularly to make sure that it remains fit for purpose.