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Discuss the use of pay grades and pay ranges and their relationship to internal alignment and...

Discuss the use of pay grades and pay ranges and their relationship to internal alignment and external competitiveness. Why are pay grades and pay ranges necessary

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Pay ranges exist whenever two or more rates are paid to incumbents of a given job. Theypermit an employer to recognize individual differences, whether they are performance or experience based. From an external competitiveness perspective, they act as a control device, setting minimum and maximum levels that an employer is willing to pay for work. Pay ranges foster internal consistency by differentiating pay based on performanceor experience differences among employees.

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