NRC: Job grades, job evaluation, and Jobscore.
Home   previous page   next page

Page 2


1.0 Job Grades.

The advantages of a grade structure are:

  • The relative levels of positions in different job functions can be readily assessed and recognised.
  • Consistent methods for grading jobs and establishing differentials between them can be maintained.
  • A well-defined and comprehensive framework is in place within which salary and career progression can be planned and controlled.
  • Better control can be exercised over salaries for new starters, merit increments and promotion increases.

Adopting a graded salary structure requires that the following be addressed:

1. Is more than one grade structure needed, or can one cover all employees.
2. How many grades should there be in a structure.
3. How wide should each grade be (i.e. what minimum and maximum pay level [band width] for each grade).
4. How to assign jobs to grades, and review existing assignments.
5. How to set the salary levels applicable to each grade, and keep those levels market competitive.
6. How to set the salary level for individual employees.

Point 1 above depends on the diversity of jobs in the organisation and the extent to which salary levels for job sub-groups are to be differentiated. Jobscore addresses points 2 to 4. Jobscore in conjunction with NRC salary surveys addresses point 5. The organisation's performance appraisal system addresses point 6.


1.1 Grade Structures.

The first question to consider is which grade structure or structures to adopt. There are three structures to consider:

  • Single
  • Career Family
  • Job Family


1.1.1 Single Graded Structure.

The main features of a single graded structure, illustrated in Figure 1 following, are:

  • All jobs are covered by a single uniform structure.
  • Each grade is defined in terms of groups of similarly valued jobs, or a range of job evaluation points if job evaluation is used.
  • All jobs with a similar value to those in a particular grade, or with a job evaluation score falling within the range of points applicable to the grade, are allocated to that grade.
  • A single salary, or a salary range, is attached to each grade (salary ranges for adjacent grades may overlap).
  • All jobs within a grade are paid the same single grade rate, or within the same salary range, with variations in pay for individual employees due to different performance levels.
  • There is scope for individuals to progress from one grade to the next, by taking on more highly skilled jobs.

Home   previous page   next page

Copyright 2004 National Remuneration Centre, Melbourne.