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:
“Solvency is maintained by means of a national debt, on the principle, “If you will not lend me the money, how can I pay you?””
—Ralph Waldo Emerson (1803–1882)
“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)