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A pay grade is a unit in systems of monetary compensation for employment. It is commonly used in public service, both civil and military , but also for companies of the private sector. Pay grades facilitate the employment process by providing a fixed framework of salary ranges, as opposed to a free negotiation.
A pay scale (also known as a salary structure) is a system that determines how much an employee is to be paid as a wage or salary, based on one or more factors such as the employee's level, rank or status within the employer's organization, the length of time that the employee has been employed, and the difficulty of the specific work performed.
The average compa-ratio is the sum of each individual's compa-ratio divided by the number of individuals. It is, therefore, not the same as a group compa-ratio, which is based on the relationship between the sums of actual rates of pay and the sums of job reference points of pay.
The pay scale was originally created with the purpose of keeping federal salaries in line with equivalent private sector jobs. Although never the intent, the GS pay scale does a good job of ensuring equal pay for equal work by reducing pay gaps between men, women, and minorities, in accordance with another, separate law, the Equal Pay Act of 1963.
The most far reaching provisions of the Act were to change the way pay is set for the General Schedule and to maintain comparability by locality. It also called for establishment of the following special pay plans: Senior Level (SL) employees (non-supervisory and non-managerial employees classified above grade 15 of the General Schedule), administrative law judges (AL), members of the Boards ...
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Payscale was developed to help people and businesses obtain accurate, real-time information on job market compensation. While Payscale started by crowdsourcing compensation data from employees to power its products for employers, its Software as a Service offerings have evolved to allow businesses to utilize multiple compensation data sources, including Payscale's Crowdsourced and Company ...
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