How You Set Up Grade Ladders for Pay Scale Requirements

This example illustrates how to use a grade ladder to create a pay scale that's typical of technicians in the metal industry in Germany. The ladder includes four grades, and each grade includes four steps.

The following table summarizes key decisions for the grades, rates, and grade ladder in this scenario.

Decision to Consider	In This Example
Are steps required for the grades?	Yes.
Which step in each grade should be the ceiling step?	The last step in each grade.
What type of rates are necessary?	Salary rates only.
Will the ladder be created using grades or grades with steps?	Grades with steps.

Summary of the Tasks

To set up the pay scale, complete these tasks:

• Create grades

• Create a grade ladder

Create Grades

1. Under My Client Groups, In the Workforce Structures work area, click Manage Grades to open the Manage Grades page.

2. On the Manage Grades page, click Create to open the Create Grade: Grade Details page.

3. In the Grade Details region of the Create Grade: Grade Details page, complete the fields as shown in this table, using the default values unless otherwise indicated.

   Field	Value
   Grade Set	Common
   Name	Technicians 03
   Code	Tech03

4. Click Next to access the Create Grade: Grade Steps page.

5. In the Grade Steps region of the Create Grade: Grade Steps page, click Add Row.

6. Add four steps for the grade by completing the fields as shown in this table. You must click Add Row after adding each step.

   Field	Value
   Step Name	Year 1
   Step Name	Year 2
   Step Name	Year 3
   Step Name	Year 4

7. Verify that Year 4 is the ceiling step.

8. Click Submit. You will add the grade rates when you create the grade ladder.

9. In the Warning dialog, click Yes.

10. In the Confirmation dialog, click OK.

11. Repeat steps 2 through 9 to add three more grades with steps. Complete the information for each grade using the information in these tables. The ceiling step in each grade is Year 4.

    Field	Grade 2	Grade 3	Grade 4
    Grade Set	Common	Common	Common
    Name	Technicians 04	Technicians 05	Technicians 06
    Code	Tech04	Tech05	Tech06

    Field	Value
    Step Name	Year 1
    Step Name	Year 2
    Step Name	Year 3
    Step Name	Year 4

Create a Grade Ladder

1. In the Workforce Structures work area, click Manage Grade Ladders to open the Manage Grade Ladders page.

2. On the Manage Grade Ladders page, click Create to access the Create Grade Ladder: Grade Ladder Details page.

3. In the Grade Ladder Details region of the Create Grade Ladder: Grade Ladder Details page, complete the fields as shown in this table, using default values unless otherwise indicated.

   Field	Value
   Grade Set	Common
   Name	Metal Technicians
   Grade Type	Grade with steps

4. Click Next to access the Create Grade Ladder: Grades page.

5. In the Search Grades region of the Create Grade Ladder: Grades page, enter TECH in the Code field and click Search.

6. Select Tech03 and click Add to Grade Ladder.

7. Select Tech04 and click Add to Grade Ladder.

8. In the Add to Grade Ladder Hierarchy dialog, select At the top and click OK.

9. Select Tech05 and click Add to Grade Ladder.

10. In the Add to Grade Ladder Hierarchy dialog, select At the top and click OK.

11. Select Tech06 and click Add to Grade Ladder.

12. In the Add to Grade Ladder Hierarchy dialog, select At the top and click OK.

13. Verify that the grades appear in numerical order, with Tech06 at the beginning of the ladder and Tech03 at the end of the ladder.

14. Click Next to access the Create Grade Ladder: Rate Values page.

15. On the Create Grade Ladder: Rate Values page, select the legislative data group for Germany.

16. In the Grade Step Rates region, click Add Row.

17. Complete the following fields as shown in this table.

    Field	Value
    Name	Technician Ladder Rates
    Rate Type	Salary
    Frequency	Monthly
    Annualization Factor	12
    Currency	EUR

18. In the Step Rate Values region, enter rates for the four steps in each grade by completing the fields as shown in this table.

    Grade Name	Step Name	Value
    Technicians 03	Step 1	1,750.73
    Technicians 03	Step 2	1,878.90
    Technicians 03	Step 3	2,009.79
    Technicians 03	Step 4	2,143.92
    Technicians 04	Step 1	2,238.57
    Technicians 04	Step 2	2,408.39
    Technicians 04	Step 3	2,577.68
    Technicians 04	Step 4	2,744.81
    Technicians 05	Step 1	2,831.87
    Technicians 05	Step 2	3,047.14
    Technicians 05	Step 3	3,257.52
    Technicians 05	Step 4	3,469.00
    Technicians 06	Step 1	3,586.36
    Technicians 06	Step 2	3,851.38
    Technicians 06	Step 3	4,122.34
    Technicians 06	Step 4	2,143.92

19. Click Next.

20. On the Create Grade Ladder: Review page, review the grade ladder hierarchy and the rates, and click Submit.

21. In the Warning dialog, click Yes.

22. In the Confirmation dialog, click OK.