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. Typically, pay grades encompass two dimensions: a "vertical" range where each level corresponds to the responsibility of, and requirements needed for a certain position; and a "horizontal" range within this scale to allow for monetary incentives rewarding the employee's quality of performance or length of service. Thus, an employee progresses within the horizontal and vertical ranges upon achieving positive appraisal on a regular basis. In most cases, evaluation is done annually and encompasses more than one method.
Important employers to use pay grades include:
- U.S. uniformed services pay grades
- U.S. Government pay grades
- United States Foreign Service
- United Nations
Famous quotes containing the words pay and/or grade:
“We now in the United States have more security guards for the rich than we have police services for the poor districts. If you’re looking for personal security, far better to move to the suburbs than to pay taxes in New York.”
—John Kenneth Galbraith (b. 1908)
“Life begins at six—at least in the minds of six-year-olds. . . . In kindergarten you are the baby. In first grade you put down the baby. . . . Every first grader knows in some osmotic way that this is real life. . . . First grade is the first step on the way to a place in the grown-up world.”
—Stella Chess (20th century)