University:
University of Houston
Course:
CIS 4365 | Database Management
Academic year:

2024
Views:

43

Pages:

10
Author:

kaKeturawwyi

Determining Progression From Lowest To Highest Pay Rate  Normally, low midpoint-to-midpoint differences are found in pay structures of lower-paid, unskilled, semiskilled, and clerical employees.  High differences are found in pay structures of the executives and the senior managers of an organization. 31 Determining Progression From Lowest To Highest Pay Rate  The following issues should be considered when determining the appropriate midpointto-midpoint differences:  The smaller the difference between midpoints the more pay rates available to assign to a specific job.  The more rates of pay the more opportunity for assigning different rates of pay to jobs with minor differences. 32 Determining Progression From Lowest To Highest Pay Rate  The greater the differences between pay rates the easier it is for jobholders to perceive differences in worth between jobs.  A small difference between midpoints may force an organization to have more than one pay structure. 33 Determining Progression From Lowest To Highest Pay Rate  For jobs at the lower end of the pay structure, a 6% to 7.5% difference in midpoints may be appropriate;  For those in the middle of the pay structure an 8% to 10% difference would typically apply; and  At the executive end of the structure the difference would normally range from 15% to 25%. 34 Developing Pay Grades  Pay grades are nothing more than convenient groupings of a wide variety of jobs or classes similar in work difficulty and complexity requirements but possibly having nothing else in common. 35 Developing Pay Grades  It may provide for a single rate, or it may allow for a range of pay within a certain grade.  The top or maximum rate of pay of a pay grade states that this is the most that work produced by a job in this grade is worth to the organization. The bottom places a minimal value on the contributions of the assigned job.  36 Developing Pay Grades  The distance between minimum and maximum recognizes the range of performance and experience of incumbents in the assigned job(s). 37 General Characteristics Of Pay Grade Systems  Each grade provides for a range of pay.  Within a pay grade range there is a minimum, a midpoint, and a maximum pay.  The range from the minimum to the maximum within a single pay grade may vary from 20 to 100 percent. The most common range is from 30 to 50 percent. 38 General Characteristics Of Pay Grade Systems  The number of steps within a grade may also vary. Grades having steps will normally have from 3 to 10 steps, with 6 to 7 in-grade steps most common.  There is a direct relationship between the rate of increase per step and the number of steps within a grade. 39 General Characteristics Of Pay Grade Systems  The midpoint of each pay grade is normally a constant percentage greater than the one preceding it. This percentage normally varies from 5 to 10 percent.  Adjoining pay grades normally overlap. If there is a 30 percent range within a pay grade and there is a 10 percent difference between midpoints, there will be a 67 percent overlap. 40