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2585 8046610 55879 78231 10058311 69849 97789 12572912 87311 122236 157161Salary Structure : Ratio Method Sa l a r y Str u c tu r e0500001000001500002022001 2 3 4 5 6 7 8 9 10 11 12 13C o m p a n y J o b G r a d e sSalary in RMBS e r i e s 1S e r i e s 2S e r i e s 3S e r i e s 4Salary Structure : Dispersion Method J o b G r a d e s M i n i m u m M i d p o i n t M a x i m u m0 6 , 0 0 0 8 , 0 0 0 1 0 , 0 0 01 7 , 5 0 0 1 0 , 0 0 0 1 2 , 5 0 02 9 , 3 7 5 1 2 , 5 0 0 1 5 , 6 2 53 1 1 , 7 1 9 1 5 , 6 2 5 1 9 , 5 3 14 1 4 , 6 4 8 1 9 , 5 3 1 2 4 , 4 1 45 1 8 , 3 1 1 2 4 , 4 1 4 3 0 , 5 1 86 2 2 , 8 8 8 3 0 , 5 1 8 3 8 , 1 4 77 2 8 , 6 1 0 3 8 , 1 4 7 4 7 , 6 8 48 3 5 , 7 6 3 4 7 , 6 8 4 5 9 , 6 0 59 4 4 , 7 0 3 5 9 , 6 0 5 7 4 , 5 0 610 5 5 , 8 7 9 7 4 , 5 0 6 9 3 , 1 3 211 6 9 , 8 4 9 9 3 , 1 3 2 1 1 6 , 4 1 512 8 7 , 3 1 1 1 1 6 , 4 1 5 1 4 5 , 5 1 9Salary Structure : Dispersion Method Sa l a r y Str u c tu r e : D i s p e r s i o n M e th o d0202204000060000800001000001202201400001600001 2 3 4 5 6 7 8 9 10 11 12 13J o b G r a d e sSalary in RMBS e r i e s 1S e r i e s 2S e r i e s 3S e r i e s 4 The learning zone covers the period when a person is on his ?learning curve?, familiarizing himself with the knowledge and skills required if he is to bee fully petent. The length of time to go through this zone will vary according to the individual?s experience, petence and ability to learn. It would be accepted that someone might enter the range at any point in this zone, from bottom to top, depending on experience. The Learning Zone The qualified zone covers the period when the job holder continues to increase his capacity to do the work and to improve his performance. The minimum salary in this zone should be the market rate for the job, so far as this can be ascertained, the assumption being that the market rate is the salary level required to attract a petent individual from another job to join the midpoint in this zone, which is also the midpoint of the grade, is the salary level which all petent employees would be expected to achieve. This is above the market rate in order to retain these individuals. An employee who is no more than petent could stop at this point, but most would continue to advance until they reach the top of the qualified zone, which would be regarded as the normal maximum for the job. Many such employees would in any case be promoted to a higher grade before they reach the upper limit of this zone. The Qualified Zone The premium zone is reserved for those employees, especially in the higher grade jobs, who achieve exceptional results but for whom suitable promotion opportunities do not exist. This zone enables outstanding staff to be given additional rewards and encouragement. In some salary structures, the published salary grades for each job only cover the learning and qualified zones, the premium zone being reserved for use in special cases. Progression through that zone would not be regarded as normal by management or staff. The Premium Zone Makeup of a Salary Range $ %9 , 0 0 0P r e m i u m Z o n e1508 , 2 5 0Q u a l i f i e d 1357 , 5 0 0 Z o n e 1256 , 7 5 0L e a r n i n g Z o n e1156 , 0 0 0 100Relationships Between Grades $9 , 0 0 06 , 0 0 01$9 , 8 0 07 , 2 0 02$1 2 , 9 7 58 , 6 5 0320% 20% Graded Salary Structures ? The range may be defined in terms of the difference between the lowest and highest points in the range, using the minimum as the anchor (Maxmin ratio method): Min Midpoint Max Maxmin $20,000 $24,000 $30,000 1:50 $20,000 $25,000 $32,000 1:60 $20,000 $26,000 $34,000 1:70 Alternatively, the range may be defined as a percentage of the midpoint using the midpoint as the anchor (Salary dispersion method): Min Midpoint Max Dispersion Max Point (100%) Point Ratio $20,000(80%) $25,000(100%) $30,000(120%) +20% $18,750(75%) $25,000(100%) $31,250(125%) +25% $17,500(70%) $25,000(100%) $32,5000(130%) +30% ?The midpoint of the range is regarded as the “target salary” for the grade, which would be the average salary of the staff in the grade. The target salary is the salary that you will pay to a fully petent professional doing the job on that grade The midpoint is usually aligned to the market rates for jobs in the grade. The salary policy of the anization determines whether the midpoint is equated to the median market rate or whether it is related to another point. eg upper quartile Graded Salary Structures ? The rate of salary progression through a range is determine by: time or length of service (service increments) individual performance (variable or merit increments) ? The number of salary ranges required depend on: the upper and lower salary levels of the jobs to be covered by the structure, which give the overall range of salaries within which the individual salary ranges have to be fitted the number of distinct levels of responsibility in the hierarchy which needs to be catered for by separate grades the size of the differentials between each salary range. Graded Salary Structures Graded Salary Structures ? There is a differential between the midpoints of each salary range which provides adequate scope for rewarding increased responsibility on promotion. It does not create too wide a gap between adjacent grades or reduce the amount of flexibility available for grading jobs. ? The salary ranges are sufficiently wide to allow recognition of the fact that people in same job grade can perform differently, from satisfactory performance to outstanding performance. ? There is an