Pay structure

The pay structure in order to provide a logical way to pay and reward people. The structure achieves three main aims:

  • It ensures that the pay structure in clearly aligned with the organization strategic objectives and reward behaviors that support those objectives.
  • It provide for an orderly way for pay increases to occur and for career progression to be made clear.
  • It helps ensure that the basis for the pay is fair and that is avoids illegality and unfair gender bias.

We have several ways or indeed combinations of ways that can be chosen to form the basis of pay structures but when designing these there are choices that our organization needs to make about the number and which of the pay grades or pay bands within the structure.

Job evaluation

In order to achieve this type of job evaluation. We defined job evaluation in the following way:

Job evaluation is a method of determining on a systematic basis the relative importance of a number of Jobs.

As you can see, job evaluation does not actually determine rates of pay that any individual employee should receive, but it can be used as a systematic basis for determining differences i n Jobs and subsequently the different pay levels for those Jobs.

As such it seems to us to be an appropriate topic to discuss as many organizations use it as the basis for determining their pay structures.


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