Framework for Implementing Pay Grades in IT


IT JobFamilies Pay grades for IT are the next challenge for enterprises and CIOs as the IT job market heats up. CIOs and HR departments are now asking how to create IT pay grades that work.

A well-defined set of IT Job Families is the base for implementing pay grades that work

Framework for Implementing Pay Grades in IT - The key to any successful IT function is critical. Compensation and career path progession are where CIOs and HR Managers need to focus.

Staff retention is positively impacted when employees feel there is a career path they can follow that has both clearly defined requirements and compensation. This is more important when economic times are good and there are more opportunities for career advancement outside of an organization rather than via internal promotion and compensation increases.

Key components in creating a framework for establishing and maintaining pay grades in IT are:

  • Having clear IT job families with well defined career paths
  • Getting a commitment and participation from the executive management team in establishing pay grades for the IT organization
  • Using the company's compensation philosophy to create pay grades that support it
  • Determining how often you will adjust grades due to inflation or market changes

The steps in creating working pay grades, which successful "World Class" organizations follow, are:

  • Obtain a salary survey for comparable positions and locales
  • Review the job content and job description of the existing organization
  • Create a set of IT job families which is consistent with the organizational culture and structure
  • Update and or create job descriptions to meet current requirements
  • Map the existing staff positions to the newly defined job families and job descriptions
  • Set overall pay range for the IT function -minimums and maximums
  • Set the number of levels in the job families and pay grades
  • Establish pay ranges for each level
  • Create an overall pay grade chart - consolidate pay grade levels so they are meaningful
  • Review and amend

The key to any successful IT function is critical. Compensation and career path progession are where CIOs and HR Managers need to focus.

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