1. How do I set up grades, grade rates, and grade ladders?
  2. Overview of Grade Ladders

Overview of Grade Ladders

Grade ladders are a sequence of the grades to which a worker is eligible to progress, along with a compensation value associated with that grade or with the steps within the grade.

You use grade ladders when everyone with a certain grade or a certain step within a grade is paid the same amount. A grade ladder is often associated with a union contract. You can create and manage grade ladders on the grade ladders page.

Note: You can reuse grades in different grade ladders.

When you create a grade ladder, you can choose one of these options:

  • Progression Grade Ladder for Grades with Steps
  • Progression Grade Ladder for Grades Without Steps
  • Grade Ladder for Grades with Steps

Use a progression grade ladder if you want to do any of the following:

  • Default the person’s salary from the rates on the grade ladder during HR actions such as Hire, Promote, or Transfer.
  • Use the Run Grade Step Progression batch process to automatically move the assignment to the next grade or step within the grade, based on eligibility. The process can optionally update the salary with the associated rate.
  • Use the Synchronize Grade Step Rates batch process to update salary records after you’ve updated the rates on the grade ladder.

Ladders Where Grades Don’t Have Steps

If you chose Progression Grade Ladder for Grades Without Steps when you created the grade ladder, the grade type will be set to Grade.

When you set up this type of ladder, only grades without steps are available to add to the ladder. You can't create a grade ladder with a combination of both grades without steps and grades with steps.

You define grade rates when you set up the grade ladder, and the grade rate values are unique for this ladder. You can’t share grade rates between grade ladders.

Ladders Where Grades Have Steps

If you chose Progression Grade Ladder for Grades with Steps or Grade Ladder for Grades with Steps when you created the grade ladder, the grade type will be set to Grade with steps. When you set up this type of ladder, only grades with steps are available to add to the ladder.

You define step rates when you set up the ladder, and the step rate values are unique to each ladder. You can't share step rates between grade ladders.

Note: You can add rates to a grade with steps, when you add the grade to a grade ladder.

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