From policy to practice: Grades and ranges
The next step is to design pay grades and pay ranges. These analyses are usually done with base pay data, since base pay reflects the basic value of the work rather than performance levels of employees (see Ex. 8.9 for a comparison of metrics).
Why bother with grades and ranges?
Grades and ranges offer flexibility to deal with pressures from external markets and differences among organizations. These include:
1. Differences in quality (skill, abilities, experience) among individuals applying for work (e.g., Microsoft may have stricter hiring requirements for engineers than does FastCat, even though job descriptions appear identical).