1.3.1 Determining the Grade Salary Range (Band Width).
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Each grade has a width in terms of catering for a
range of job sizes (grade width), and a corresponding range of salaries referred to as the
grade's salary band width.
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Considerations for determining the number and width of grades are discussed in Section 1.3 above.
The width of a grade is defined in terms of the span of job evaluation points it covers, for
example:
| Grade 1 | Grade 2 | Grade 3 | Grade 4 | Grade 5 |
| 154 - 191 | 192 - 239 | 240 - 299 | 300 - 374 | 375 - 486 |
Job Points Ranges
Each grades can be the same width, however it is more likely that individual grades are of
differing widths, become wider as the grade increases. In the above example, each grade is
successively 25% wider (the midpoint job evaluation of each grade is 25 per cent higher than
its predecessor).
While the width of the grade specifies which jobs would fall into the grade because of their
job evaluation points, width does not specify explicitly what salary level or range applies to
the grade. The single salary level for each grade, or where applicable the salary range, adds a
second dimension to the model.
Each grade must have a salary level associated with it. This salary becomes the underlying
salary for all jobs in the grade. Such salaries are determined from market surveys, and the
translation of salary levels from surveys into the grade structure is addressed in Section 1.3.2.
It may be that there is a single salary applicable to all positions and all employees in the
grade (and this can be true in non pay-for-performance environments). In this case the above
diagram may be presented as follows, where a single salary level for each grade is shown:
Table 1.3.1
Grade Salary Level
($) p.a. | 38,700 | 45,300 | 53,700 | 64,100 | 77,200 |
| Grade | 1 | 2 | 3 | 4 | 5 |
| Points Range | 154 - 191 | 192 - 239 | 240 - 299 | 300 - 374 | 375 - 486 |
Many organisations would have a range of salaries applicable to a grade to reward growth and
advancement of employees in the grade. Hence, for each grade, there would be a range of salaries
extending above and below the 'mid-point' or single rate salary for the grade. How wide should
this range be is the next question.
The wider the grade, i.e. the bigger the range of job sizes it contains, the bigger the spread
of salaries that can be justified. However, the underlying purpose of a range of salaries for a
grade is to enable an individual's pay within a grade to move in relation to the their performance
in the job. [Necessarily therefore, an adequate performance appraisal mechanism is also needed
(see Section 2.0 for a brief introduction to paying for performance).]
Copyright 2004 National Remuneration Centre, Melbourne.