Company: Select the company for which the salary grades are being configured.

Salary Grade: Enter a unique and user defined code which represents the Salary Grade Description. A Salary grade scale using either points or a range should be clearly documented prior to setting this up on HRPlus.

Overtime Allowed:  Check Yes or No to indicate whether employees who belong to this salary grade can earn overtime or not. Only employees belonging to the company, union, and bargaining unit selected for this salary grade can be paid using the selected salary grade.

Description: Enter a description for the Salary Grade. Eg. Labourers, Administrative Staff, Executives, etc.

Union: Select the Union from the drop options previously set up on HRplus for your company. If your organization does not use unions, then this field can be left blank.

Bargaining Unit: Select the Bargaining Unit from the drop options previously set up on HRplus for your company. If your organization does not use unions, then this field can be left blank.

Date From: Enter the date from which the salary grade is applicable.

Date To: Enter the date until which the salary grade is applicable. This may apply in the case of union agreements where pay grades may have an end date based on new pay rates agreed upon in an updated bargaining unit.

If the Date To field is left blank, then the salary grade will be effective indefinitely.

Company: The company is auto-filled as this was previously entered when creating the salary grade.

Salary Grade: This field is auto-filled and shows the code for the salary grade for which you are creating the points.

Point: Enter the grade point (1, 2, 3, etc.). Note that if salary grade points are being used, each salary grade must have at least one point setup.

Pay: Enter the salary amount here or the hourly rate.

Date From: Enter the date from which the grade point will be applicable.

Date To: Enter the date until which the salary grade is applicable. This may apply in the case of union agreements where pay grades may have an end date based on new pay rates agreed upon in an updated bargaining unit.

If the Date To field is left blank, then the salary grade will be effective indefinitely.

Union Code: The union available for selection here is based on the union selected when creating the salary grade.

Unit Code: The bargaining unit available for selection here is based on the unit selected when creating the salary grade.

Repeat the steps for additional Salary Grade Points.

Date From: This is the date from which the pay range becomes effective for those positions linked to the salary grade.

Date To: This is the date from which the pay range expires for those positions linked to the salary grade, and perhaps a new salary bench-marking exercise should be scheduled. Note that this field can be left blank so that the pay range will be effective indefinitely.

Salary Minimum: The minimum of the pay range represents the lowest rate you are willing to pay for the job. This rate is typically set 10%, 15% or 20% lower than the pay range midpoint. There are many reasons to pay an employee close to the minimum of the range, including: 

• The employee fails to meet or just barely meets the minimum hiring requirements for the position.
• Other employees in this role are paid at the minimum, and offering a higher rate could disrupt the internal equity of individuals in any given role.
• The organization cannot afford to pay more for the position.

Salary Mid Point: The midpoint of the range is considered the competitive market rate for the job. An organization that aims to pay “at market” should strive to align employee pay rates with the midpoint of their relative pay ranges. When an employee’s pay rate aligns with the midpoint:

• The individual is typically in good standing with your organization and competently performs each job task associated with their role.

Salary Maximum: The maximum of the pay range represents the highest rate you are willing to pay for the job. This rate is typically set at 10%, 15%, or 20% higher than the pay range midpoint. (Make sure your pay range maximum and pay range minimum are established using the same percent deviation from the midpoint.) There are many reasons to pay an employee close to the maximum of the range, including:

• Employee has mastered all the competencies of this position. 
• The employee has been identified as a high performer or has high potential within the organization.
• The employee has long service and/or tenure with the organization

If Salary Grades are being used, then they must be linked to the respective job so that HR can reference the correct salary grade point or range when entering a salary/rate for an employee.

Additionally, it is recommended that the Salary Range is also setup for the Salary Grade. This is so that when the salary change transaction is being entered for an employee if the salary/rate is outside of the normal range, the record will be red-circled as an indication of the outlier record.