Step 6. Create a simple pay structure

Why?

Once you have ranked your jobs, the next step is to turn that ranking into a clear and fair pay structure for basic pay. This ensures that equal pay for equal work or work of equal value between women and men is applied to basic pay across your micro-organisation, based on the value of jobs rather than assumptions or traditions. 

How?

Group jobs into pay grades

For a micro-organisation, two to four pay grades will usually be enough. Group jobs that have similar overall demands into the same grade.

  • Grade 1 (entry-level jobs): roles that consistently scored at the lower levels (e.g. level 1 or 2).
  • Grade 2 (intermediate jobs): roles with a mix of lower and moderate scores (e.g. mostly level 2 or 3). 
  • Grade 3 (specialist jobs): roles that scored higher on several key subfactors (e.g. mostly level 3 or 4). 

Define pay ranges for each grade 

  • Decide on a midpoint salary for each grade, the central value of each grade’s pay range. Start with the lowest grade and build upwards following a logical progression. 
  • Set minimum and maximum monthly salaries around each midpoint, for each grade, so that workers’ pay grades can grow within the pay range over time

Important

If the job evaluation and classification show that some jobs are underpaid compared with their value (based on their score and grade), you should first consider adjusting salaries upwards.

  • Equal pay for equal work or work of equal value between women and men can be achieved by removing unjustified pay differences and by raising pay in undervalued, often women-dominated jobs so they match equivalent men-dominated jobs of the same value
  • Cutting salaries in higher-paid jobs is not a solution and can increase perceptions of unfairness