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Grades and Ranges – What are they and why are they important?

April 17, 2014 by Melissa Quade
 
Melissa Quade

Pay grades and pay ranges are key components to creating a successful compensation plan and driving performance.

Pay Grades and Pay Ranges Defined

A pay range sets a minimum, midpoint, and maximum dollar amount that your company has determined it will pay for a given job. Employees’ salaries are determined within the range parameters based on their performance quality, proficiency, internal equity, scope of responsibility and tenure. Pay grades are a mathematically determined set of pay ranges with increasing midpoint differentials (the difference between the midpoint of one range and midpoint of the next range up) based on the nature of the positions included in the range and usually with overlapping boundaries. Grades provide a way to give structure to various pay ranges within a company.

Why are they important?

Grades and Ranges:

  • Help with financial planning and projections.
  • Ensure your business and compensation strategies align.
  • Ensure pay equity and can be perceived as legal protection against an inequity claim.
  • Inform salary movement related to career paths.
  • Help determine how to pay unique positions.
  • Makes administration and employee conversations related to compensation more transparent.

As an organization grows, grades help to ensure fairness, make it easier to make compensation decisions and share with employees how you make those decisions. As we shared in our blog post on tips for making compensation conversations more productive for managers and employees, employees who are well informed and communicated with clearly about the pay-setting process in their organization, walk away feeling much more satisfied even if they don’t agree with the actual number.

Is it time to create a compensation structure with grades and ranges?

If you answer yes to one of the following questions this may be a good time to create a compensation structure.

  • Do you have jobs that may need to be leveled?
  • Do you have unique or hybrid jobs that you can’t figure out how to pay?
  • Do you have known pay issues that a structure would help fix? (i.e., legacy issues, compression issues, equity issues, budget issues)

For more tips on compensation including tips on using pay to drive performance visit our blog.

http://springboard.resourcefulhr.com/a-pay-for-performance-perspective-and-tips/

Did you just hire an employee or commission a contractor?

April 3, 2014 by Jennifer Olsen
 
Jennifer Olsen

There are very clear legal distinctions between the two, and the Internal Revenue Service cares deeply and passionately about the difference. The light-hearted infographic below shows some of the ways that contractors and employees differ and the consequences of those differences. You may also find this test for defining an independent contractor and related next steps helpful.

If you want the full story on making sure you classify workers correctly, you should invest in our “Independent Contractor Versus Employee” resource guide. The guide also includes a handy list of employment laws by company size.

You’re Invited! Join us for our HR Strategy Workshop – Two Dates and Locations Available

March 28, 2014 by Melissa Quade
 
Melissa Quade

Are your HR initiatives increasing profit? Are you utilizing the person tasked with HR as an active business partner? Often HR is thought of as ensuring your organization is compliant and vetting employee concerns. However, HR can have a much wider impact when it comes to maximizing the largest line item on your budget – your employees. Thinking of HR as a part of your overall business strategy and deploying it correctly can increase productivity while saving on costs.

In this workshop we’ll explore:

  • The true cost of staffing your business (average cost of recruiting an employee, training, retention, termination, etc. as well as a benefits for a typical hire).
  • How to select the HR areas and initiatives that will increase effectiveness of your organization and decrease costs.
  • Creating a successful strategy that focuses on affecting change in the identified areas that bring the greatest return on investment.
  • Setting expectations, measuring and evaluating results.

Join us! April 17, 2014

Location: Southwest King County Chambers
14220 Interurban Ave. S #134
Tukwila, WA 98168
Time: 7:30am – 9:30am
Cost: $100
*Free to Equinox, SKCC members, and Resourceful HR’s clients and guests.
Register Now

Join us! April 23, 2014

Location: Civica Office Building
1st Floor
205 108th Ave NE
Bellevue, WA 98004
Time: 7:30am – 9:30am
Cost: $100
*Free to Equinox, SKCC members, and Resourceful HR’s clients and guests.
Register Now