How to introduce and review a pay and grading structure

Author: Claire Watt

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• Assess the effectiveness of the current pay and grading arrangements against the objectives that need to be met.
• Make sure that the business case for change has buy-in from the organisation's senior management team and put together a project plan for the changes that are needed.
• Ensure that the organisation has a valid method for evaluating jobs to assess where they should sit in a new structure.
• Think carefully about where boundaries between grades are drawn in the structure.
• Use a pay benchmarking exercise to allocate salary ranges to each band or grade.
• Plan how employees will progress through the grading structure.
• Write to all employees to explain how the new structure affects their grade, pay and terms and conditions of employment.
• Build in an appeals procedure.
• Evaluate and review the structure regularly to make sure that it remains fit for purpose.