Designing pay scales
In large organisations, especially those within unionised trades, union representatives often meet with a company’s human resource representatives to discuss the various pay scales and to determine the salaries for each. This ensures a fair pay for fair work relationship between the employer and the employee.
Because salary structures are often scaled according to experience and education, it also serves as a platform through which to upskill or develop employees. If used appropriately, the employee can track their own progress and aspire to achieve their desired remuneration by pursuing the relevant steps detailed in their job profile and assessed during job evaluation.
By using a job grading index on the pay scale, employers can further gauge what remuneration package to offer new hires.
A pay or job grade is a predetermined level of compensation for a specific position within a company or an industry, based on their education and work experience. In other words, used as an index, each job grade will reflect a salary range (or pay band) fitting for that position at that experience level.
Job grades can be benchmarked to an industry standard by providing a fixed framework of salary ranges. However, within that pay format employers can still offer competitive salaries when interviewing qualified candidates for desired positions.
Qualified remuneration consultants or HR specialists can assist employers by drafting job descriptions, establishing job grades, structuring employee benefits and designing pay scales where it is required. By having these remuneration tools in place, employers can streamline and greatly improve the HR component of their company.
Do you have any questions on remuneration, employee benefits and pay scales?
Remuneration Consultants South Africa provides market leading remuneration and employee benefit consulting services. Our competitive advantage is adding a layer of tax optimization to the solutions we deliver. This enables us to optimally structure your Total Rewards System from the ground up to be fully compliant, where tax is planned proactively and not a mere afterthought. Our clients include large South African employers, as well as some of the world’s leading multi-nationals with operations in Africa. Speak to us about these and other service offerings today.