How Do Salary Structure Design and Grading Systems Interact in HR?

JAZI
Hi, would you please help me with this question?

Understanding the Relationship Between Salary Structure Design and Grading System

(Q) Explain your understanding of the relationship between the salary structure design and the grading system.

Thank you,

Jazi
psrath.hr
During manpower planning, recruitment, benchmarking, salary increments, promotions, and decisions on monetary benefits, both salary structure design and the grading system play important roles. If your grading system is properly planned and executed, it will be easier for you to design an effective salary structure.

Regards,
Parth
psrath.hr
Important Considerations for Grading System Preparation

Following points should be important during the preparation of a grading system:

• Nature of business and industry benchmarking.
• Job analysis and job evaluation of each position.
• Impact of behavior, performance, and contribution to the growth of the company, etc.

You can prepare a grading system with grades and subclasses within grades based on the nature of work. This depends on your industry in general and your organization in particular.

(Now give a study to the above points and ask if any particular doubt)

Regards,
Parth
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