Okay, now that’s just me being snippy. It is important, though, to be careful when setting up job grades. If you’re not careful, or perhaps more to the point informed, you can end up with a mess that does more harm than good.
By informed I mean that you need to know market rates before you can successfully administer a job grade program. For example, you could decide to have 2 job grade families (exempt and nonexempt) and 10 grades within each family.
That’s great, you have job grades. But what about those market rates? What exactly are they? Where do you find them? How many do you need?
In a nutshell, market rates are data compiled from surveys of many organizations’ pay rates for a wide array of jobs all across the country.
There are lots of places where you can find salary data. For example, Ive worked with data from both Mercer and Towers Watson (formerly Watson Wyatt). I’ve worked with salary data from the local Chamber of Commerce and industry surveys conducted by trade groups. Of course, there’s my personal favorite—Salary Finder at Compensation.BLR.com—and there are other online resources for salary data as well.
I recommend using market data from at least three salary surveys to make sure you’re working with accurate salary information rather than anomalies.
Below are a few resources for detailed information on developing pay structure …