What is 'pay grade' in SAP LOD-SF-EC - Employee Central?

pay grade - Overview

• Component: LOD-SF-EC

• Component Name: Employee Central

• Description: The pay range allocated to a job type.

pay grade - Details

• 
  Key Concepts: 
  Pay grade is a component of the SAP SuccessFactors Employee Central (LOD-SF-EC) module. It is a way to classify and group employees based on their job title, salary, and other criteria. Pay grades are used to determine salary ranges for different positions within an organization. 
  
  How to use it: 
  Pay grades can be used to set up salary ranges for different positions within an organization. This allows employers to easily compare salaries across different positions and ensure that employees are being paid fairly. Pay grades can also be used to determine eligibility for certain benefits or promotions. 
  
  Tips & Tricks: 
  When setting up pay grades, it is important to consider the job title, experience level, and other criteria that may affect the salary range. It is also important to ensure that the pay grades are updated regularly to reflect changes in the market or in the organization’s needs. 
  
  Related Information: 
  Pay grades are closely related to job evaluation, which is a process of determining the relative worth of different jobs within an organization. Job evaluation is often used in conjunction with pay grades to ensure that employees are being paid fairly for their work.