Understanding Pay Grade Step Progression

You use pay grade step progression to automate pay rate changes for groups of employees. Pay grade step progression helps you ensure that all employees that perform the same job at the same level receive the same rate of pay, even if the pay rate for that position changes.

The scenario illustrates how using pay grade step progression can automate pay rate changes for a group of employees. Company A negotiates a new contract with a union. The new contract includes a 2.00 USD per hour pay rate increase for all union related positions. More than 1000 union employees perform more than 100 different union related jobs within the company. Using pay grade step progression, you can automatically update the pay rates for all union related positions and the employees who perform those jobs.

You can also use pay grade step progression to establish job paths that employees can follow. Progression paths include predefined pay grade step levels, each with its own rate of pay. You can automatically move groups of employees to the next level in their progression path and update their pay rates accordingly.

The scenario illustrates how creating progression paths can automate pay rate changes for a group of employees. Company B hires a group of employees, all for different positions, at the same time. The company policy states that employees are hired on a 30 day trial basis. After 30 days, the employees are either terminated or they are promoted to the next level and receive an associated pay rate increase. Using pay grade step progression, you can automatically move all selected employees to the next level in their progression paths and update their pay rates accordingly.

Automating the process of administering pay rate changes for a group of employees can significantly decrease data entry time as well as the occurrence of data entry errors. Pay grade step administration can also help eliminate the possibility of incorrectly excluding an employee from receiving a pay rate change.