Dimensions That Set Boundaries for Pay Grades

Dimensions That Set Boundaries for Pay Grades

The boundaries for the pay grades are generally set by 4 dimensions:

  • Business size: measured by company turnover figure (revenue)
  • Business complexity: measured by the level of integration of the business, the diversity of the product portfolio, the complexity of the business processes and so on.
  • Organizational size: Measured by the number of employees
  • Geographical breath: Measured by the international reach of the organization.

Salary Formula 17A

Source: Mercer IPE Methodology