Editing the pay scale
The pay scale editor groups the following elements on one screen:
- The impact that switching to the pay scale model has had on the payroll
- The wage formula that binds together the components of the payroll
- All levels of the grid
- Salaries of team members
One of the recurring questions asked in the transition to a salary pay scale is the question of cost. This is why the tool always displays a calculation of the increase in total payroll. So, whatever the modifications made to the pay scale, you will always have a clear measurement of the impact right before your eyes.
The formula of the pay scale
The components chosen to appear in your pay scale are found in the formula of the sidebar. By clicking on them, you’ll be able to edit the name or description of the components. Click “Validate” to validate the changes.
The description of the components will appear in the layout of the pay scale. Do not hesitate to complete it by writing descriptions that will clearly speak to the team.
The pay scale tiers
In this section you’ll find the list of the pay scale tiers with their names and amounts. After the generation of the pay scale, values will be based on each one, according to your desires (more details in the article about TODO Generating the pay scale).
What to check for each component?
- The levels of the Profession correspond to the salary base of a new recruit. Make sure that this database is consistent with the market and that differences between professions are justified. We invite you to consult our guide on TODO defining a base salary.
- For Experience, the steps correspond to a multiplying coefficient. The evolution can be constant, increasing or decreasing according to your choices during the creation of your pay scale. As experience is closely linked to the profession, it is advisable to perform several tests by generating several pay scales until the trend suits your desires rather than individually editing the steps.
- The tiers of Seniority validate skills shared by the entire company. Here we must make sure that the skills gap is precisely valued by the increase in compensation.
- Management levels are hierarchical responsibilities. Here you can value the impact that a manager has on the team.
- If you chose to include the Work Location, you can vary the wages based on a city coefficient. It’s advisable to use this coefficient to adapt to the cost of living and the labor market. Be careful to keep an eye on wages: a very slight change will have a big impact.
Each step can be edited individually like this:
In preview form, the total payroll is recalculated with each change but you can reverse it at any time. Changes are only complete after clicking Validate.
Use the horizontal scroll bar to access components that are not visible on the screen.
The salaries of the team
The definition of the pay scale and the qualification of the employees make it possible to calculate the new salary of each one. This section summarizes the current salaries as defined during the import, in comparison with the new post-pay scale salaries. The last column provides a visualization of the salary gain between the two.
By hovering over each employee, a preview of their qualification will be displayed. Click an employee to open the TODO LINK Compensation Editor.
Refinement of the pay scale
Now that each of the sections has been presented we can get to the heart of the matter: how to evaluate the quality of the pay scale and how to correct any problems.
- The first step is to make sure the total payroll increase is reasonable and relative to your budget. If this is not the case, you can adjust the TODO LINK pay scale settings by lowering the amounts and then generating a new pay scale. Do not hesitate to repeat the process several times.
- In a second step, it’s the consistency of the tiers that will be reviewed. Keep in mind that the pay scale is intended to be presented internally and approved by the team. The base salaries of professions can be controversial, do not hesitate to adjust them so that they are coherent with one another. Also, check that seniority tiers and management levels (automatically generated) are reasonable.
- The final step is the proofreading of salaries. This is the most important because it will lead to a series of increases. To help you in the comparison, the measurement in the fourth column displays the highest increases.
In relation to wages, three scenarios are possible:
- If the wage gains are too high globally, it’s advisable to TODO LINK generate a new pay scale with different parameters or to edit the amounts within the tiers.
- If these are only isolated cases, it’s more important to look at individual qualifications and adjust the salary manually. The adjustment procedure is detailed in the article about TODO LINK Defining remuneration.
- The increases are reasonable and the qualifications are justified.
Congratulations, your first version of the pay scale is ready! 🎉