NRC: Job grades, job evaluation, and Jobscore.
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Page 15

1.3.3 Summary of Grade Width Types.

The four main grade width types are:
1.Narrow-banded structures where the range of salaries applicable to each grade is small and individual grades do not overlap. These unduly restrict movements within ranges, except for routine jobs where performance level can only have limited impact on job outcomes.
2.Broad-banded, non-overlapping structures where the range of salaries for a grade is broad and individual grade do not overlaps. These produce a very coarse step from grade to grade so that borderline decisions on grading become over critical.
3.Finely graded structures where a large number of very wide grades exist with low differential between grades and considerable overlap between them. These can result in serious administrative problems arising from borderline disputes, grade drift, and the probability of staff receiving the same salary in a number of different grades.
4.Broad-banded overlapping structures which will typically have differentials of 15 to 20 percent between the midpoint salary of successive grades, with the band widths varying from 15 to 20 per cent, depending on level, and where salary ranges for adjacent grades overlap by up to 50 per cent. This is the most frequently adopted structure and it provides the best basis for a flexible approach to administering a structured salary regime without prejudicing the scope for controlling the system or creating too many administrative problems.

1.4 Individual Job Ranges Structure.

Individual job range systems simply define a salary range for each job individually. The midpoint of the range is related to market rates and the upper and lower limits are expressed as plus or minus a percentage of the midpoint salary; typically, at senior levels plus or minus 20%. The advantage of individual job ranges is that they are more flexible, but they are more difficult to control and require more administrative time and effort than a grade structure. Individual job ranges are probably best for senior jobs or for rapidly growing organisations where a conventional grade structure would be too restrictive.

Figure 5. Individual Job Range Structure

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