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Pay Grade Structure

former_member66888
Participant
0 Kudos

Hi,

I am setting up the pay grade structure. One alternative i have is to use descriptive terms in the PS Grade field and the numeric grades in the level field.

For example,

PS Grade: Top Mnt

Level : 10 - 12

PS Grade: Sen Mnt

Level: 7-8

PS Grade: Jun Mnt

Level: 4-6

PS Grade: Clerical

Level: 1-3

Now i understand that the level field is not meant for this purpose and is actually a subdivision of Grade. But my question is, what difference does it make? Will it possibly have an impact on Job Pricing and/or Salary Survey processes in the future? (which we have not currently configured).

Please share your opinions

thanks

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi..

For each grade u have different levels... starting with different Basic Salary..... & other components.....

pay scale group is a criterion used for grading job evaluation. A pay scale group is divided up into several pay scale levels.

The pay scale level is a criterion for job evaluation within the pay scale group.

Answers (1)

Answers (1)

Former Member
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Hi Zubair,

When using pay grades the level field can be used for whatever seem fit for the company you are implementing for. For example in our case we used the pay grade level to be 80 to 04, ie: 80 = 80 percent of the salary at 100 percent for that pay grade.

Make Sense.

Jamie

former_member66888
Participant
0 Kudos

Hi Jamie,

Interesting usage. I like the idea. Is it 80% of the min or max of the salary scale? Are you enforcing this through a user exit?

Ok, so the grades and levels can be used flexibly. i had asked the question due to some confusion developed after reading on the Peromnes system of job grading. This system uses categories like Top Mnt, Sen Mnt, Mid Mnt, Jun Mnt and Clerical for the grades with 3 levels in each. But i have decided to go for simple numeric grades because the client was having difficulty in deciding which grades will be default for which employee sub-groups.

thanks

> Hi Zubair,

>

> When using pay grades the level field can be used for

> whatever seem fit for the company you are

> implementing for. For example in our case we used

> the pay grade level to be 80 to 04, ie: 80 = 80

> percent of the salary at 100 percent for that pay

> grade.

>

> Make Sense.

>

> Jamie

Former Member
0 Kudos

Hi Zubair,

80 percent of the reference salary for the pay scale entry that is at 00(or 100 percent). Your idea was great as well. We just have to make sure the business is in agreement and that the solution is expandable..

thanks.

Jamie

former_member66888
Participant
0 Kudos

Hi again,

ok one more issue. Is it ok to use T510 for some employee sub groups and T710 for others? Just wondering if this can be a possible design. Or it dosen't make sense?

Can be done by using the S or T indicator in return value of feature LGMST.

Otherwise, user can also change the remuneration method (salary-T710 or pay scale-T510) while editing the basic pay infotype. Edit menu -> Change remuneration method. What impact does this have? Is there any indicator in the basic pay record that shows the remuneration method?

Thanks

Zubair

Former Member
0 Kudos

Hi Zubair,

It's OK to use T510 for some EE Subgroups and T710 for others.

Use feature TARIF with indicator S or T.

Br

Ronnie Nielsen

former_member66888
Participant
0 Kudos

Is there any benefit or any design consideration that would require both to be used? Can someone share a scenario which would require T510 to be used for some employee subgroups and T710 for other employee sub groups.

thanks

> Hi Zubair,

>

> It's OK to use T510 for some EE Subgroups and T710

> for others.

>

> Use feature TARIF with indicator S or T.

>

> Br

>

> Ronnie Nielsen

Former Member
0 Kudos

Hi

T510 for blue collar/trainees and T710 for white collar/managers.

You don't have to use T710 unless you are planning to register Pay Bands or implement Enterprise Compensation Management (ECM) in the future.

ECM calculates a compa-ratio based on the pay band linked to an employee's Pay Scale Level.

It's not a problem to start with T510 for all employees and then later on change to a combination of T510 and T710.

Br

Ronnie