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:
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Create grades
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Create a grade ladder
Create Grades
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Under My Client Groups, In the Workforce Structures work area, click Manage Grades to open the Manage Grades page.
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On the Manage Grades page, click Create to open the Create Grade: Grade Details page.
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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
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Click Next to access the Create Grade: Grade Steps page.
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In the Grade Steps region of the Create Grade: Grade Steps page, click Add Row.
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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
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Verify that Year 4 is the ceiling step.
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Click Submit. You will add the grade rates when you create the grade ladder.
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In the Warning dialog, click Yes.
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In the Confirmation dialog, click OK.
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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
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In the Workforce Structures work area, click Manage Grade Ladders to open the Manage Grade Ladders page.
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On the Manage Grade Ladders page, click Create to access the Create Grade Ladder: Grade Ladder Details page.
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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
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Click Next to access the Create Grade Ladder: Grades page.
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In the Search Grades region of the Create Grade Ladder: Grades page, enter TECH in the Code field and click Search.
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Select Tech03 and click Add to Grade Ladder.
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Select Tech04 and click Add to Grade Ladder.
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In the Add to Grade Ladder Hierarchy dialog, select At the top and click OK.
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Select Tech05 and click Add to Grade Ladder.
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In the Add to Grade Ladder Hierarchy dialog, select At the top and click OK.
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Select Tech06 and click Add to Grade Ladder.
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In the Add to Grade Ladder Hierarchy dialog, select At the top and click OK.
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Verify that the grades appear in numerical order, with Tech06 at the beginning of the ladder and Tech03 at the end of the ladder.
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Click Next to access the Create Grade Ladder: Rate Values page.
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On the Create Grade Ladder: Rate Values page, select the legislative data group for Germany.
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In the Grade Step Rates region, click Add Row.
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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
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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
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Click Next.
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On the Create Grade Ladder: Review page, review the grade ladder hierarchy and the rates, and click Submit.
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In the Warning dialog, click Yes.
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In the Confirmation dialog, click OK.