Defining step and grade schedules

  1. Select Compensation > Set Up > Step and Grade Schedules > Step and Grade Schedules.
  2. Click Create.
  3. Specify this information:
    Step and Grade Schedule
    Specify a name for the step and grade schedule. For example, UNION.
    Version date
    Specify a version date for the step and grade schedule.
    Pay Rate Type
    Select whether the pay rate is based on an hourly rate, annual salary, or monthly salary.
    Active
    Select whether the step and grade schedule is active or inactive. The schedule must be active to be assigned to anyone.
    Currency
    Select a currency for the step and grade schedule.
    Rate Progression
    Optionally, select the rule that indicates how resources progress through steps and associated pay rates on a schedule. For example, whether movement is based on length of time or performance.

    If you select a rule, define each rule. See Rate progression setup of rules.

    This field is used to process rate progressions automatically. To process rate progressions manually, leave this field blank. You can also associate a rate progression rule to a step and grade schedule at a later time.

    Rounding Method
    Select the rounding method to use when calculating pay rates.

    Select Normal and the number rounds up if the last digit is 5 or more. It rounds down if the last digit is less than 5.

    Select High and the number rounds up.

    Select Low and the number rounds down.

    Round To Precision
    Specify the number to round to. For example, .01
  4. Click Save.
  5. On the Grades tab, define the grades.
    1. Click Create.
    2. In the Grade field, specify the name for the grade that you just created.
      For example, a grade can represent different levels or different job families.
    3. Click Save and Create to save the grade and create a new one.
    4. After you have created the last grade, click Save.
  6. On the Steps tab, define the steps.
    1. Click Create.
    2. In the Step field, specify the name for the step that you just created.
    3. Click Save and New to save the step and create a new one.
    4. When you have created the last step, click Save.
  7. Specify the rates for each grade and step.
    You can specify rates in one of these ways:
    • On the Step and Grade Pay Rates tab, click Create, specify the new rate for a grade and step, and click Save and New. Repeat until you have created all of the rates.
    • On the Pay Rate Matrix tab, open the schedule, specify the rates on the matrix, and click Save.
    • You can also calculate steps and rates automatically. See Calculating steps automatically.