Hi Unnati,
Employee grade should describe the salary/wage, allowance, and benefits, if any, that all occupants of the grade will be eligible to receive.
If there is an appropriate salary structure defined in your organization, then it is easy to set up the employees' grade...
For example, let's consider the Executive Position.
You can grade them based on experience and salary.
E1 GRADE - Senior Grade - 3-5 years exp 15000-20000
E2 GRADE - Grade I - 2-3 yrs exp 10000-15000
E3 GRADE - Grade II - 1-2 yrs exp 7500-10000
It is also possible that one designation may cover multiple grades depending on the seniority of the individuals holding the designation, and simultaneously, it is also possible that there can be many designations to which the same grade may apply.
Like in the above designation "Executive," we have covered grades such as E-1, E-2, E-3, etc., and one grade, AA-1, may be applied to various designations like Peons, Drivers, Assistants, and so on.
I hope this might help you; if it doesn't, please raise further queries. I would be glad to respond!
Regards,
Sushma