What Is A Fan Shaped Pay Structure?

What Is A Fan Shaped Pay Structure?

Salary Formula 32G

Source: Internal Wage Structure Written By Gregorio Billikopf, University of California

In a fan shaped pay structure, the pay ranges are comparatively taller for jobs at higher pay grade classifications. To someone earning $9 an hour, an increase of 50 cents an hour would be significant. However, to someone earning $40 an hour, an increase of 50 cents would not have significant meaning. When asked how large pay raises should be, consistent with this principle, employees at the lower end of the pay scale often respond in terms of specific dollar amounts (for example 50 cents an hour) while those at middle and higher levels tend to speak in terms of percentage increases.

Source: Internal Wage Structure Written By Gregorio Billikopf, University of California

 

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