Example to Calculate Rates Based on Grades With Steps

Scenario: You hire Sherry Callaway as a Pharmacy Technician with grade 3 and step 2. You calculate grade rate values for her annual salary payments based on grades, grade ladder, and step details.

Configuration:

1. Set up grades, grade ladder, and rates for the Pharmacy Technician job to record the level of compensation for the technicians.

2. Create a rate definition based on grade details. Add a rate contributor of type Grade Ladder.

3. Hire Sherry in the grade 3 with Step 2.

4. Run the Generate HCM Rates Process to calculate the rates based on the information held in the grade tables.

Step 1: Grades, Grade Rates, and Grade Ladders

To set up the grade structure for the Pharmacy Technician job, perform these tasks:

1. Set up five different grades and add five steps for each grade.

   • Use the Manage Grades task to set up the grades, 1 to 5.

   • On the Grade Steps page, add the five grade steps, Step 1 through Step 5, to each of the grades as shown in this illustration.

     

2. Use the Progression Grade Ladders task to create a grade ladder Pharmacy Technicians Salary with these details:

   Option	Value
   Grade Set	Common Set
   Name	Pharmacy Technicians Salary
   Legislative Data Group	US Legislative Data Group
   Frequency	Annually
   Assignment Action	Automated Grade Step Progression

   • On the Grades and Steps page, add the grades with steps in the sequence in which your employees typically progress in your organization. Enter the sequence for the place of the grade on the grade ladder, with 1 being the lowest grade. The employee can move up till the grade 5.

   Grade	Step 1	Step 2	Step 3	Step 4	Step 5
   1	17803	18398	18990	19579	20171
   2	20017	20493	21155	21717	21961
   3	21840	22568	23296	24024	24752
   4	24518	25335	26152	26969	27786
   5	27431	28345	29259	30173	31087

Step 2: Rate Definition

Use the Rate Definition task to create a rate definition of category type Grade Rate. Include these details in the Return Rate tab.

Option	Value
Periodicity	Annually
Periodicity Formula	Standard Rate Annualized
Currency	US Dollar

Add a rate contributor of type Grade Ladder.

Step 3: Grade Details During Employee Hire

When you're hiring a new employee, add these grade ladder and grade details on the Employment Information page.

Option	Value
Grade Ladder	Pharmacy Technician Salary
Grade	3
Step	Step 2

Step 4: HCM Rates Process

On the Home page, click My Clients Groups and click the Payroll tile. Click the Submit a Flow task. After selecting a legislative data group, search for and submit the Generate HCM Rates flow.

Result: As shown in this illustration, the application returns a rate value of 22568.