Salary Grade Codes are used to define salary ranges according to company business rules. Salary grades may overlap, depending upon an organization's policies and salary plans.
Salary information on Salary Grade Codes include a Payroll Mode and fields to define Annual Hours, and Minimum, and Maximum Pay. Midpoint is automatically calculated.
Per employee, the compa-ratio is system-calculated based on the Compensation tab information and the selected Salary Grade.
The Salary Grade codes table has a button to update employee compa-ratios for that salary grade. After you click on the button, compa-ratios for all employees with that Salary Grade are updated. For employees with a Position with that Salary Grade, the compa-ratios is only recalculated when the Employee Position Detail’s “Allow Overrides” checkbox is unselected.
Where it's used: On the Compensation tab within the Employee Master, the Salary Grade Codes Table generates the Salary Grade selection list.
The use of salary grades, whether industry-specific, or for a particular organization, enables determining whether an employee's pay is outside of the standard range.
The most commonly known system of salary grades is that of the U.S. government, which features series such as G followed by a pre-defined number for each salary grade.
For instance, certain positions may be assigned to particular Salary Grade Code.