Relating Pay to Grades Indirectly: Using Pay Scales
If you are involved in negotiating pay levels with staff or union groups, you may be using a system of grade steps or points with specific values of pay for each step, or point. For example, you may have negotiated different pay scales with different union groups. Or, you may have negotiated a single set of pay points for all of your employees.
Typically, employees are placed on a step within their grade. They move up the steps for the grade by a periodic incrementing process. This process might run automatically at a fixed time each year or it might be based on a review process specific to the employee.
In Oracle HRMS you set up a pay scale to show the separate points and the value negotiated for each point. You can set up any number of pay scales, for example for negotiated pay scales with different unions.
Setting Up Pay Scales
To set up a pay scale:
1. Create the pay scale itself, which is a set of progression points.
2. Define one or more rates associated with the pay scale, entering a value for each progression point.
3. Define your grade scales, which are the points of the pay scale that are valid for each grade.
You can define the rates before or after you define the grade scales.
Using Pay Scales
You manually place an employee on the appropriate grade step. You can use a process to automate the periodic incrementing of the grade step placements for some or all employees.
Incrementing Grade Step Placements
Placing an Employee on a Grade Step