Grading structures

Sheila Attwood Editor's message: In a pay and grading structure, jobs are placed in order of hierarchy and arranged into a series of grades, with salaries attached to each grade. Having a clear grading structure helps to provide a logical basis for objective decisions about pay and progression. Although some smaller employers may decide that it is unnecessary to develop a formal grading structure, it is nonetheless useful for them to clarify the rationale on which decisions about the relative value of jobs and how they are rewarded are made.

Some organisations have different grading structures in place for different types of job roles, but the employer needs to keep a watchful eye over the risk of equal pay issues where this is the case.

Sheila Attwood, managing editor, pay and HR practice

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