
Building Pay Structures for Beginners
Pay Structure (or Salary Structure) is a hierarchical group of jobs and salary ranges within an organization. Salary structures often are expressed as pay grades or pay bands that reflect the value of a job in the external market and/or the internal value to an organization.
A grade structure becomes a pay structure when pay ranges, brackets or scales are attached to each grade, band or level.
A pay structure consists of a series of pay ranges, or “grades,” each with a minimum and maximum pay rate. Jobs are grouped together in ranges that represent similar internal and external worth.
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