Confused About Employee Grading and Salary Discrepancies? Let's Discuss Your Approach

I am encountering an issue regarding the grading of employees. The organization I joined categorizes employees as executive, senior executive, staff, assistant manager, manager, and senior manager. However, I have noticed that a particular grade is not consistently associated with a specific salary range. For example, some executives earn more than assistant managers, and in some cases, assistant managers earn more than managers. Additionally, some senior executives earn below the executive range.

After I joined, I revised the grading system and established a salary range based on grade, such as Executive: 10-15, Senior Executive: 15.5-20, and so on. To my understanding, grading is sometimes based on experience and efficiency. I would like to hear your views on this matter, as I am unsure if the procedure I'm following is correct. Furthermore, can staff be categorized as a grade?

Understanding Salary Grades and Job Titles

You must be referring to the salary grade of jobs or positions within a company's salary structure. The words "executive, senior executive, manager, assistant manager, and senior manager" are job titles and job classes that are apparently mixed up by your company. They are not job grades.

What Are Job Grades?

Job grades refer to the hierarchy used by companies in their salary structure. Job grades may use numbers and/or letters to represent the distinction between and among them. It is important to ensure that the salary rate ranges given to jobs do not result in distortion, i.e., the situation wherein smaller jobs receive higher salaries than bigger jobs.

Determining Job Grades Through Job Evaluation

In compensation, job grades can be correctly determined through the use of Job Evaluation (JE). JE is the method used to determine the relative size of jobs within a company. Big jobs are usually given higher job grades, while smaller jobs are given lower job grades.

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