Pay Grades [Thread 4478]

Dear colleagues,
I'd like to know how pay grades are typically arrived at. What are the different methods used, and the steps that you would follow to group jobs together into pay grades? What is your definition of a pay grade. Do you personally use banding?
I don't have much experience in compensation, and am looking to braoden my knowledge in this area. Any literary suggestions are welcome.
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Thank you all.
With regards, Mubeena Mohd

Hi
The best way to gain knowledge on the subject is reading textbooks to understand the basic theory. I would suggest you to read "Compensation" by Milkovich and Newman. Then we can always discuss the issue on MSN. My id is [Login to view]
Regards,
Ravindra

Hello Mubeena,
I am also looking for this information. Anyway i have decided to start this process with job analysis and compilation of job descriptions. After that i am planning to divide the workforce into technical and non technical group and provide grades based on their educational qualifications and experience.
After grading is over, i am planning to consult with other HR executives to know about the present compensation packages available for a company in our line of business.When i get that information, i would advise the management to revamp the salary structure.