How to Develop a Salary Schedule

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A salary schedule is an important tool for clarifying expectations between employer and employee. It sets out in clear terms the amount of time it will take for the employee to begin earning a higher salary, and the expectations and criteria that the employee must meet in order to receive this raise. At its best, a salary schedule can be a powerful motivator. At its worst, it can create dissension among employees who feel like their particular position is not fairly compensated.

List the employment positions available with your company. Arrange them according to their degree of importance to the company and the amount of work and sacrifice that they require of an employee. For example, a technician who will be required to be available at all hours of the day or night should be ranked higher than one who works a limited, clearly defined schedule because he must make compromises in his personal life to accommodate his job.

Assign a salary range to each position. Use the lower figure to represent an entry-level position and the higher figure to represent the highest income an employee at your company can earn working that position.

Define the criteria for each position that will enable an employee to advance from the lower end of the salary scale to the higher end. Include the time frame it will take for him to receive a raise as well as the specific benchmarks and accomplishments that he should achieve in order to advance to the next salary level.