Understanding Salary Grades and Steps
Depending on how you structure the compensation plans, you can set up salary grades only or salary grades and salary step components. Salary grades define an appropriate salary range for a worker that is assigned to that grade. Step components define the actual recommended pay rate by component for a worker who is assigned to that step.
When you save a salary grade, the system creates a rate code default rule for the salary step, with the Rate Code Source Indicator equal to the salary step. The system uses rate code default rules (instead of the Job Code and Salary Step setup tables) for the compensation defaults. The remainder of this section discusses grade advance criteria for Japan.
Grade advance criteria includes the number of reviews and their respective weights and the number of eligibility points that is required. The system checks for workers who meet the criteria that you specify here and reports those who are eligible to advance from the grade. Each grade has criteria that must be met before workers are eligible to advance from this grade to the next higher grade.
Weighted and Non-Weighted Sample Results
The decision to use weighted or nonweighted reviews has an effect on the results. In the examples that follow:
A is the worker's results.
B1 and B2 are settings for weighted and nonweighted (simple average) methods, respectively.
C1 and C2 are the results of A used with B1 and B2, respectively.
A: Worker's Review Results
This table shows the worker's review results:
|
Review |
Final Review Band Code |
Review Points |
|---|---|---|
|
Most recent |
A |
80 |
|
Previous |
S |
100 |
B1: Weighted Method
This table shows B1 results using the weighted method:
|
Review |
Review Weight |
|---|---|
|
Most recent |
60% |
|
Previous |
40% |
B2: Nonweighted (Simple Average) Method
This table shows B2 results using the nonweighted simple average method:
|
No. of Reviews |
Review Weight |
|---|---|
|
2 |
NA |
C1: Result of Using Weighted Method: 48 + 40 = 88
This table shows C1 results using the weighted method:
|
Review |
Final Review Band Code |
Eligibility Points |
Review Weight (from B1) |
Result of Weighted Review |
|---|---|---|---|---|
|
Most Recent |
A |
80 |
60% |
80 * 0.6 = 48 |
|
Previous |
S |
100 |
40% |
100 * 0.4 = 40 |
C2: Result of Using Nonweighted (Simple Average) Method: = (80 + 100) / 2 = 90
This table shows C2 results using the nonweighted simple average method:
|
Review |
Final Review Band Code |
Eligibility Points |
Result of Nonweighted Average Review |
|---|---|---|---|
|
Most Recent |
A |
80 |
(80+100)/2 = 90 |
|
Previous |
S |
100 |
(80+100)/2 = 90 |