Salary Bands & Grade Structures

Here is why Salary Bands & Grade Structures are an important component of effective compensation programs for any Organization.

  • They ensure that the salary levels for your organization’s various job groups are competitive and internally equitable.
  • These structures explain the relationship between your company’s internal salary grades and the jobs that are in those grades.
  • They represent the Salary Ranges and the internal job value hierarchies within your organization, as well as the relative external job value in the market
  • They bring transparency in the organization where employees can clearly see and compare salaries between themselves and employees in similar roles. Organizations can see which employees are being under paid or over-compensated in their roles.
  • They provide support in all the hiring, appraisals and promotions decision making. Also help organizations control their Salary expenses.
  • They give a rational explanation to companies on why and how the salaries of their employees are decided.

Origin Consultants will Design Your Organizations Salary Bands & Grade Structures

Origin Consultants are frequently approached by leading corporations to design and implement effective Salary Bands & Grade Structures for them.

We follow a rigorous step by step methodology in defining and structuring the Compensation Structure for our clients:

Study the Organization’s Compensation Philosophy

This is an in-depth study of the company’s beliefs regarding compensation so that there is consistency in its application regarding compensation practices. The company may choose to be a market leader or pay at par with the market or be the lowest payer in the market. This choice will influence how the company will attract and retain top talent.

Conducting Job Analysis

Our Consultants gather, document and analyze information about a job to understand the activities and responsibilities it includes. Also determine the job’s relative importance to other jobs, the skills and qualifications required for doing the job and the conditions under which the work is performed. This concludes in well written Job Descriptions for each job.

Group into Job Families

On completion of the accurate job descriptions, grouping of Jobs into Job Families based on Functions (administrative job family, technical job family, management job family and executive job family) or job families based on geographic locations or different divisions.

Ranking of Jobs Within Job Families

After the Job families are established, next step is to evaluate each job based on their levels in the organization and responsibilities. Then rank the jobs to establish a hierarchy. Ranking is usually based on the value to the organization, years of work experience required or on the classification of the role. People in these positions are not being ranked, only the jobs get ranked.

Determining the Salary Grades

Once we establish the job hierarchy, we take each job group and classify them into a Salary Grade. If the client organization is excessively big with many jobs, the we end up with more Salary Grades.

Comparison of Salary

Our Research Teams find out how your jobs are being paid in comparison to those in similar roles, similar company types and in similar industry /markets to give you a clear idea about whether or not your employees are being fairly paid for their respective jobs.


Establishing Salary Bands

Next, we define the key values in the salary band – the minimum, midpoint, and maximum salary. The salary bands can and often do overlap.

Origin Consultants strongly advise Clients that after they finally have the Salary Grades & Bands Structure, they must frequently monitor the market to keep the structure current.

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