Understanding Pay Range Formulas

When the pay ranges for the organization pay grades are based on variable factors, you can set up pay range formulas that the system uses to automatically calculate pay ranges for each pay grade. These formulas are based on the job evaluation points. In addition, if a job pays more in one region of the country than in another, you can enter a geographic multiplier in the pay range formula. The system calculates different minimums, midpoints, and maximums for the different areas, based on the minimum, midpoint, and maximum multipliers, as well as the geographic multiplier.

To use pay range formulas, you must evaluate the jobs within the organization. You evaluate jobs to determine equitable pay ranges for them.

See also:

• Entering Job Evaluation Information.