How to build a salary scale for your company (+ example)
The salary grid is much more than just a table. It is a strategic tool for ensuring fair and transparent remuneration within the company. In a context where salary expectations are constantly evolving, and where legislation imposes constraints, mastering the elaboration of a salary grid becomes essential.
Why is this? Because a well-designed pay scale helps retain talent and ensures compliance with legal obligations. But that's not all! It will also enable you to structure salaries according to precise criteria: skills, seniority and market conditions.
In this article, you'll find out everything you need to know to set up an effective pay scale tailored to your sector. You'll find the steps you need to follow to structure a grid, as well as tips on how to get the most out of it. Ready to boost equity and commitment in your company?
What is a salary grid?
Definition of a salary grid
A salary grid is a structured table that defines the remuneration applicable to employees according to several criteria, such as the position held, status, step or hierarchical coefficient. Generally speaking, the pay scale is set either by the sector's collective bargaining agreement, or directly by the employer.
Each pay scale presents salary levels, often expressed in minimum and maximum values, according to the categories defined. The main aim is to provide a transparent and fair framework for setting wages. This ensures internal consistency and limits unjustified pay differentials between employees.
Structure of a salary grid
The structure of a salary grid is based on a system of levels or steps, associated with coefficients that indicate the importance of each position within the organization. These coefficients determine pay bands, enabling different roles to be classified clearly and precisely.
🧑⚖️ In France, the use of a salary scale is not imposed by law, but is often required by collective agreements governing working conditions in certain sectors. This means that, even if employers have a certain freedom to define their own pay scale, they must respect the minimum values set by legislation and collective bargaining agreements.
What is the purpose of a pay scale? Objectives
A salary scale sets salaries on the basis of clear, objective criteria. It provides a transparent framework, reduces subjective decisions and limits the risk of discrimination.
It is also a strategic human resources tool. It provides employees with a clear vision of their salary progression and development prospects. They know what to expect in terms of future increases.
For the company, the salary grid simplifies budget management. It clarifies salaries for each position, helping to optimize human resources expenditure.
Finally, by harmonizing salaries for comparable functions, the salary grid reinforces transparency. It thus fosters a calm social climate, conducive to talent retention.
Salary grids and the French Labor Code: what does the law say?
In France, a wage scale is not mandatory under the Labor Code, but is often governed by collective bargaining agreements, which set minimum wages by job category. In addition, the pay scale must respect the SMIC (salaire minimum interprofessionnel de croissance), which guarantees a legal salary threshold for all employees.
The French Labor Code also stipulates that equal pay must be respected: for jobs of equivalent value, salaries must be identical. A well-designed pay scale helps to ensure legal compliance, by respecting the minimum requirements and reducing the risk of wage discrimination.
Key benefits of a corporate pay scale
Adopting a pay scale guarantees a number of benefits:
- Fairness and transparency: by defining precise criteria for remuneration, the pay scale reduces the risk of discrimination and builds trust.
- Easier negotiations: salary ranges simplify discussions, whether at the time of hiring or during appraisals.
- Neutrality in recruitment: a salary scale reduces bias, particularly in terms of the gender gap, for fairer recruitment.
- Loyalty and motivation: the salary grid strengthens employee motivation and recognition, while encouraging retention.
- Legal compliance: it guarantees compliance with legal and collective bargaining obligations in terms of remuneration, with salaries in line with imposed scales.
- Support for forward-looking management of jobs and skills (GPEC): as part of GPEC, the salary scale helps to anticipate staffing needs and develop essential skills.
In short, a salary grid does more than just manage salaries. It's a pillar of HR strategy, fostering a motivating, stable and competitive environment. A must for any company! 💪
Where and how to find salary grids?
Accessing salary grids is crucial to properly aligning a company's compensation policy. Here's where you can find them and how to use them:
- Collective agreements: collective agreements are key sources for information on minimum wages in a sector. They often specify salary scales according to job categories and skill levels.
- Human resources department: within the company, the HR department generally holds the salary scales. It can also provide explanations of how salaries are structured. 🤓
- Professional websites: several online platforms offer salary databases to compare remuneration by sector and position. These tools offer an overview of current market trends.
- Company intranet: in organizations that value transparency, salary grids are often accessible via the intranet. This gives all employees access to this essential information.
- Contractual documents: employment contracts and pay slips sometimes mention the employee's level or step. These documents are a direct source for checking that the salary corresponds to the pay scale.
How to create a salary grid
1- Select the basic elements of a pay scale
Diploma and skills
Among the first elements to consider are qualifications and skills. The level of training required for each position, as well as specific qualifications and skills, play a decisive role in assessing remuneration. This is the basis for aligning salary with job requirements.
Professional experience and seniority
Professional experience and seniority represent another fundamental pillar. In fact, solid experience can justify a higher level of remuneration, as it reflects in-depth knowledge of work practices and the work environment.
Professional category
In the company, each position is assigned to a professional category: managerial, technical, administrative, etc. Each category is often associated with coefficients. Each category is often associated with specific pay coefficients, which define appropriate pay bands.
This categorical system is based on the salary coefficient, which evaluates the role of each position in achieving the company's objectives. The greater the responsibility, the higher the coefficient, and therefore the salary.
The job market
Finally, market conditions and inflation are unavoidable factors. The economic context of the business sector influences remuneration decisions, enabling the company to remain competitive and guarantee the purchasing power of its employees.
📍Certain more specific criteria can also be added, such as geographical location or company-specific parameters, to tailor the salary grid to the organization's overall strategy.
☝️ By taking all these elements into account, the salary grid can be structured in a balanced way and adjusted as required. This ensures a consistent and fair approach for each position, adapted to market realities and company objectives.
2- Determining appropriate salary levels
- Analyze the market: carry out comparative studies based on the salary scales of similar companies in your sector or region. Position your company in relation to the competition and adjust salaries accordingly. 👀
- Evaluate positions internally: Analyze positions in depth to identify the skills needed, the responsibilities and the impact of each role on the company's objectives. This evaluation ensures fair compensation aligned with each employee's added value.
- Align with corporate objectives: align salaries with the company's strategic priorities. For example, if innovation is crucial, pay more attractively for R&D positions.
- Revise the salary scale regularly: Update the salary scale in line with market trends, inflation and changes in the business. This periodic review ensures the company's competitiveness and fair pay progression for employees.
- Consult employee representatives: Involve employee representatives or committees in the development process. Their perception of employees' expectations and needs contributes to a fairer pay scale and strengthens team support.
Example of a company salary scale
To better illustrate how a salary scale can be structured, here's a simplified example that might typically be encountered in a company in the telecommunications sector:
| Position | Step | Coefficient | Minimum salary (€) | Maximum salary (€) |
| Junior technician | 1 | 200 | 1500 | 2000 |
| Senior technician | 2 | 250 | 2100 | 2800 |
| Junior engineer | 3 | 300 | 2500 | 3200 |
| Senior engineer | 4 | 350 | 3300 | 4200 |
| Project manager | 5 | 400 | 4000 | 5500 |
In this grid, each position is associated with a step and a coefficient, which determine the applicable salary range. The hierarchical system is based on a step logic: as the step increases, so does experience and responsibility, resulting in higher coefficients and higher salaries.
Company-specific pay scales can be far more complex, incorporating additional factors such as :
- performance bonuses,
- seniority-related increases
- or compensation for special constraints.
The aim, however, remains to maintain a fair and motivating system. 👊
[Video] Tutorial: creating a salary grid in Excel
How to read a salary scale
A salary scale is often presented in the form of a structured table, classifying positions by levels or steps. Each level indicates a minimum and maximum gross monthly amount, determined according to criteria such as seniority, qualifications or responsibilities associated with the position.
In general, the rows of the grid represent steps or positions, while each column corresponds to a progression criterion, such as seniority or skills.
🔎 To read a salary grid effectively:
- Identify your job level: locate your job title or step, which determines the applicable indexed salary range. This level indicates the basic amount to which you are entitled.
- Take into account index coefficients and points: some pay scales apply index coefficients or points to adjust pay according to the impact and responsibilities of the position. A higher coefficient or number of points translates into a higher salary.
- Check out possible career paths: the pay scale may indicate stages of salary progression, taking into account seniority, skills or length of service. This information enables you to visualize opportunities for salary increases, as well as any allowances linked to your progression.
Salary grids and HR strategy: towards fairness at the service of performance
The design and use of a salary grid plays an essential role in modern human resources management. It establishes a transparent and equitable framework, guaranteeing fair remuneration and promoting a harmonious and motivating working environment. The objective? To build a pay scale that reflects skills, experience and responsibilities, while remaining competitive in the face of economic challenges.
Beyond its practical utility, the salary grid invites strategic reflection. It underlines the importance of pay equity in optimizing performance and employee satisfaction. By mastering this compensation model, companies can integrate the salary grid into an overall HR strategy aimed at developing talent and strengthening commitment.
Ready to explore compensation mechanisms and adapt your HR strategy to today's realities?
Article translated from French