Pay Grade/Pay Scale
Name
Institution
Date
Institution
Date
0.0.Table of contents
1.0.Abstract……………………………………………………………………………………….3
2.0. Introduction………………………………………………………………………………….3
3.0. Pay grade…………………….………………………………………………………………4
3.1. Achieving a good pay grade…………………………………………………………….5
3.2.Qualification…………………………………………………………………...…………5
3.3.Impress the company……………………………………………………...……………..6
4.0.Using pay scale…………..………………………………………………………....…….7
5.0. Purpose of using pay grade…………………………………………………….……….8
5.1. Basics of pay grade………………………………………………………………….……9
5.2. The general schedule in hospitality industry………………………………………….10
5.3. Equity in payment………………………………………………………………...…….10
5.4. How a pay grade works in the tourism industry…………………………………..….11
5.4.a. Setting pay scales………………………………………………………………..…..13
5.4.b. Consider the pay grade………………………………………………………….….13
5.4.c. Establish the rate range………………………………………………………..……13
5.4.d. Job pricing……………………………………………………………………………13
5.4.e. Midpoint………..…………………………………………………………………….14
5.5.Summary……………………..…………………………………………………………..14
5.6.Conclusion…………………………………………………………………………….….14
5.7.References………………………………………………………………………………..15
5.8.
1.0.Abstract
Working is every human being’s duty and job is what defines what a human being is, being part and parcel of a human’s life. The assignment and allocation of job is always done on the level of skills and qualification that one has. Commonly, positions occupied by people in various jobs are always based on their degree qualifications though there are rare instances where there are those holding the higher positions without having adequate educational qualification. In this case, the individuals do have some skills or special attributes that lead them to be entrusted with the responsibilities that come with the job. The current situation in the job market is one of high competition where every individual has skills and is striving to land high profile jobs with higher pay.
2.0. Introduction
In the hospitality industry and especially the tourism industry, moving up in the employment scales without educational qualification is always difficult. The pay grade scale is usually determined by the post held by and individual. In this respect, the post that one rises to is squarely dependant on the level of academic qualification. There have been incidents where promotions have been blocked on the basis of inadequacy in academic qualifications. Learning as much as possible should be an individual’s main aim. This is especially because the tourism industry is a very sensitive industry to handle as it entails even handling of strangers and foreigners. These foreigners always have an impression to them depending on the services that are accorded to them. Reaching a high pay grade scale in this industry needs one to have extensive knowledge which can only be measured in terms of the academic achievements and qualifications. Getting the opportunity to study and reach a level that earns one a higher pay grade scale is a rare opportunity that most people lack in the current society. Most people in the globe wish to achieve the high pay grade scale but fall short of the golden opportunity of attaining the high academic qualification that is required. Everyone in the job market aspires to reach the highest pay grade scale but is always held back by certain factors ranging from responsibilities to other personal incapability. This has most often than not led to the cancellation of a lot of promotions. Recruitment of people with high pay grade scale in the tourism industry is always based on qualifications as well as their performance records, just as it is in all the other industries. This is because high levels and grade mead an individual is to be in charge of the team in aspiring to reaching the goals of the industry. (Bohlander& Snell, 2009)
3.0. Pay grade
Pay grade refers to a scale that is used in controlling the pay grade system. It is a unit that is applied in the public service both in the military and the civil servants. Pay grade is also used in the private sector and in the companies. Through the pay grade, the employment is often facilitated through the provision of a framework that indicates the ranges of the salaries instead of the negotiation that is open. Pay grade is basically comprised of two different dimensions. There is a vertical range in the pay grade. This is a dimension whereby the levels correspond to the academic requirements and responsibilities that are attributed to the specific level. There is a horizontal scale dimension. This scale contains the compensations that are monetary based and depends on the length of service and the performance quality of the employees in question. In both the horizontal and the vertical dimensions, the employees progress based on the appraisals that are regular and constant. For one to move to higher pay grade within the tourism industry, there must be evaluations that are usually carried out by the concerned parties. These evaluations are usually done using more than one method. This is so because a rise in the pay grade means that one has more responsibilities bestowed upon them. It is always the desire of all the employees to reach a high pay grade scale in their jobs. This is always a very important issue for all those that are in the employment market, including those in the tourism industry. (Baum, 2006)
3.1. Achieving a good pay grade
As earlier stated, it is always the desire of every employee to attain a high pay grade. There are various ways that can be used to achieve this. The obvious fact is that all the humans have to continue doing their jobs throughout their entire lives. This is because it is the only way in which food can be got and be guaranteed. This has been the reason behind the desire for every employee to increase the income that he or she gets and the thought of how to get the increase in pay grade is everyone’s issue.
3.2. Qualification
Through qualification, an employee not only gets to increase on the knowledge that he or she has, but also gets to improve the pay grade that is usually much desired. With the current competition in the job market, and in a time when everyone is striving to attain the highest possible qualifications needed in the hospitality industry, employees are raising the bar much more higher for those seeking an increase in their pay grade. Companies are finding it more challenging to identify and recruit candidates as a result of nearly equal educational qualifications held by all the candidates. This therefore means that the company will always settle on the individual who is beast qualified above the rest seeking the same job. This qualification goes beyond just academic work. It also encompasses the experience and managerial aspect. Bohlander& Snell(2009) state that throughout the working period, an individual has to prove that he has a lot to offer for the company’s growth and development. One must show that one has a lot to offer in terms of quality service to the company so that the company can move to increase the rate of benefit of working with him or her as an employee. The sole way of attaining a high pay grade is therefore having adequate qualification that surpasses any doubt and limit. One must have qualification that is credible and that rises above the rest of the employees contesting for the job. Higher qualifications do invite high pay grade as it is the only way to measure someone’s worth for the high pay grade. (Barrows& Powers, 2008)
3.3.Impress the company
The employee must strive to impress the company is there is going to be a transition to a high pay grade. Through impressing the company, the employee gets to have an increase in the pay grade, thus, improving the amount of salary that he or she gets. This is yet another great way of improving the pay grade scale. Impressing the company can be done in various ways. Basically, the employee must show the boss of the company that he or she is a hard worker. The love for the company must be portrayed throughout the work of the employee and the must show the ability to work under various situations, be it strenuous or unfavorable. This is the concept that is usually employed in the private sector. Usually, the pay in private sector is higher than that in the government sector. This is basically because in the private sector, the analysis is always done on the worker’s abilities. This is always the base for payment setting. In this case, impressing the boss at the work place can greatly increase the pay grade scale of an employee. The achievement of a better scale of pay grade is what employees yearn to achieve as through that high pay grade, particular life’s goals are achieved.
4.0.Using pay scale
The use of pay scale is not usually applied by all companies to establish the amount of wages that the employees deserve to be given. In some companies, there is always an arbitrary agreement on the amount of wage to be given to an employee before the employee begins working for the company. There is always a determination of subsequent increments by the company. Companies that lack a pay scale that is standard do determine the payment of employees using their performance at work. In some instances, the companies do improve the pay grade in considerations to the general performance of the company in the previous financial years. In the tourism industry, the main pay grade determinant is the experience and qualification. In most cases, the companies dealing in tourism do not always want to gamble with those they employ. This is basically because the prosperity of the tourism industry is based on the type of services produced and the quality of these services. There is stiff competition in the hospitality industry and better still in the tourism industry. In this aspect, the tourism and other hospitality management companies do source for the best suited individuals to work in the companies. In other companies, there is lack of a pay scale that is formal on the rationale of payment to the employees. However, these companies do have a pay scale that is loosely created in order to help them determine the amount of wage to be given to employees on their employment into the companies. The same informal scale is usually used by the companies in the determination of the amount of pay increase to be given to the employees.
In the hospitality management field, pay scales are usually used. For instance, most tourism industries use a pay scale that is usually presented in the format of a table. There are positions in the company that do require that the employee have some special education or has undergone some special training. In such a position, there is always the experienced lined against the pay scale and there is always an indication of the level of education reached or the amount of training that the individual has underwent.
The employees do find the meeting point of the two factors to aid the decision on the amount of payment that the employee needs for a year. In the event that the job does not need any special training or education, there is always an indication of just how much the employee shall be paid based on the specific number of years of experience. Just like in other hospitality fields, the tourism industry has its union organization. The representatives from the union do meet with the employers from the company so as to determine the worthiness of the salary that has been presented on the pay scale. The union and the company usually develop a contract in with the pay scale is part of. The purpose of doing this is always to ensure that the employees at the industry are employed on fair basis, paid the amount that they deserve and that is in equal proportion to their experiences and academic qualifications. Through this manner, there is the elimination of favoritism in as much as salary payment scales are involved and fairness is overtly achieved across the employment field. Despite the fact that pay scale is commonly associated with businesses and companies that are unionized, those companies that d not belong to unions do apply the same as well.
5.0. Purpose of using pay grade
The prominence of the pay scale has since increased in the twenty first century. This was initiated into the federal government’s payment scheduled in what is referred to as General Schedule which is in turn in place for all the federal jobs. There are several employees in the private sector that have also adopted similar payment scale. The use of pay schedules that are structured is preferred by most human resource professionals and institutions as opposed to the pay that is market based. This is in order to ensure that there is equity and to achieve a reduction of the discrimination and potential lawsuits on payments that are market based. Most of the hospitality companies like the tourism industry apply the pay grade largely. This is because the industry basically demands an above reproach ability and experience in handling and managing the industry.
5.1. Basics of pay grade
According to Mathis and Jackson (2010), the pay grade has a basic structure with different levels of pay grade levels vis-à-vis various ranges of steps and placements which are at all the levels. The most basic pay grade structure is usually composed of three main levels namely the high placement, the moderate and the minimum level. These are always placed within all the pay grades. Through this, there is always a provision for a high pay for those employees that have more experience in the job specification. This same basic structure is applied in the tourism industry, which is among the hospitality management sectors. In the tourism companies, there are always various job levels with different specification. These levels do vary in terms of job specifications and academic requirements. There are certain posts that do not always need advanced levels of education while in others, there is always need for extensive experience and higher educational qualification. Such posts do come with responsibility that is larger and it is right that those employees in those positions receive their payments on affair scale in proportion to their experience and educational qualifications. This is where the pay grade structure does become effective and relevant.
5.2. The general schedule in hospitality industry
The General schedule is mostly used by the federal government. The pay grade system is very prominent and has also been applied in the hospitality industry. Most of the companies dealing with tourism pay the employees at various levels that are based on the schedule just as it are in the federal government. The payment schedule is also known as GC and contains fifteen different steps of payment with a variance in the job level. The tourism industry does have employees taking various levels of job. There are those in the clerical department and those providing unskilled labor. Such employees are not required to have high academic credentials and they are at lower levels. There is a point GS-5, which is a level whereby the employees are expected to be holders of degree certificates in order to get appointed or promoted to those positions. In the tourism industry, higher movement should be attained in equal proportions to the advancement of degrees. For an employee to reach the highest level in the industry there is need to have a legal and research degrees. Those holding managerial positions in the tourism industry are the ones who fall under this category.
5.3. Equity in payment
The pay grade schedules are always supposed to be used so as to achieve equitable and fair compensation in the tourism industry. Having equity internally in the tourism industry means that the companies involved should pay all the employees that are within the organization fairly and equitably. This has further prevents situations whereby there is discrimination in terms of pay. The background aligns the mode and structure of payment in the companies. The tourism companies also engage in comparisons in the pay schedules with other institutions and industries in order to achieve external equity. The competitive nature of the tourism industry has set precedence to the companies in the industry to establish payment schedules that will attract the top performers and talent in the field. This will avoid regular routine turn over in an attempt of remaining competitive in the industry. (Arboretum, 1989)
5.4. How a pay grade works in the tourism industry
A pay grade is often used in defining the amount that each and every employee is to be given in a company. In the tourism industry the pay grade is basically determined by the length of time that an employee has stayed in a particular post doing his job and also on the level of responsibility that the individual is subjected to at work. In the tourism industry, there is always a relationship between the horizontal axis and the length of time in which the employee has offered his services to the industry. The vertical dimension I the pay grade is always applied while dealing with the pay in terms of the academic qualification and the job requirements. Through the use of pay grade, tourism companies are able to determine the level of compensation that is needed and that is appropriate in every step that is undertaken in the process of employment. In the public sector, pay grades do take place in salary negotiations where contribution and fairness is always sought. The application of pay grades is also done in positions that are representative of the unions. (WorldatWork, 2007)
In the hospitality sector, new employees usually start in the first step of the pay grade range under their specific job. In the event that the employee stays on the same job title, the pay grade range starts to rise. This is usually after a span of every five years of working in the same job’s pay grade. Despite the fact that this compensation system that involves pay grades is always applicable in the employment in the public sector, military, universities and the federal government, the tourism industry also used the same model.
The pay steps of the pay grades differ in various organizations. There may be a difference of up to ten to fifteen steps that an employee needs to undergo before reaching the top position that warranty the payment of a high pay grade. Getting a pay rise once an employee attains the top most pay grade is dependent on the cost of living at the particular time, the increases or the allowances that the employee is entitled to. In the tourism industry, an employee always has an opportunity to be promoted or to be moved to another job that comes with different or more responsibilities. The employee therefore starts to move up the pay steps and to move into the next level of pay grade. In each step of the pay grade, there are always some over laps in the amount of salaries paid to the employees. For instance, a starter employee at the first grade of a job in the tourism industry that has 1 to 10 steps may be earning from 16000 dollars to 22000 dollars. When the employee moves to the second pay grade, the rates assigned to this grade may be from a minimum of 24000 dollars to a maximum of 23000 dollars. (Damp, 2008)
The tourism industry is composed of both government and private sectors. The pay grades are also used in the private sector in the tourism industry. The growth of a company is always characterized by the need for improving the pay scales so as to be fair and ensure that there is a similarity and uniformity in the payment across all the various positions of different job units and functions in the company. The retaining and attracting of good employees to various work units is mooted by similar responsibilities and job requirements. The tourism sector’s pay grades are often reached at through salary negotiations and the application of the discretion of the managers.
5.4.a. Setting pay scales
The main use of pay scales is always to help the employers to determine the salaries and wages of the employees. The pay scales are usually listed in table form in which experience, education and other factors are always included. The pay scales help to maintain the consistency in pay and come handy in eliminating discrimination and favoritism. The compensation and human resource professionals in the tourism industries need to understand how to set the pay scales. In order to understand well, the following must be taken into consideration: (Sims, 2002)
5.4.b. Consider the pay grade
There should be a comparison between the different ranks in the job. This is done through pay grades. The employers are supposed to use the nine factors of the BLR for analysis. The job then is evaluated and ranked on the basis of the duties assigned to the employee, experience, educational level and the skills. After considering these factors, it is then easy to assign the pay grade correctly in correlation to the salary range of the position that an employee holds.
5.4.c. Establish the rate range.
The rate range is the spread out of the salaries. It is the examination of the various points comprising of the minimum point, the midpoint and the maximum point. The rate range is used in the establishment of how the payments are done.
5.4.d. Job pricing
This is a process of the establishment of the three job ranges in relation to the grade of the labor. The study of salary and range survey helps the employers to make a comparison of wages that they offer their employees in their organization to those that are offered in the market. This is important as there is a lot of competition in the tourism industry. The knowledge of the wage scales can therefore help the employers to stay competitive in the labor market while ensuring that those who are of higher worth in the organization are paid more than those who are of lower worth. This thus strikes a balance between the external equity and the internal equity as well. (Armstrong & Baron, 1995)
5.4.e. Mid point
The midpoint refers to a rate that is standard and tat all the employees who are performing and are qualified for the job remain at payment level which is acceptable and fair. Setting a rate range for any job requires the knowledge of the minimum point, midpoint and the maximum point.
5.5.Summary
Pay grade forms an integral aspect of the hospitality industry in general. In order to achieve equality and fairness in terms of payment, and to keep hold of the employees that one has, the employees need to apply the pay scales so as to satisfy their employees. This ranges from the laborers and unskilled employees to the highly qualified employees in the organizations. There can never be a better way of equally dealing with payments for employees apart from the use of a well structured pay grade.
5.6.Conclusion
The hospitality industry and the tourism industry specifically need a comprehensive pay grade. This is important if the companies involved in the sector are to maintain and keep up with the competition in the labor market. There is good labor that is always hard to come by. Once a company gets that good labor, it is often upon them to see that the labor is maintained. This can only be done through a fair and acceptable payment scheme. This can only be achieved through the application and use of the pay grade. (Walker& Miller, 2009).
5.7.References
Arboretum, D. (1989). How to Develop a Job Grade/pay Scale System. New York.
Barrows, C,. Powers, T. (2008). Introduction to Management in the Hospitality Industry, Study Guide. New Jersey: John Wiley & Sons.
Baum, T. (2006). Human Resource Management for the Tourism, Hospitality And Leisure Industries: An International Perspective. NY: Cengage Learning EMEA.
Bohlander, G., Snell, S. (2009). Managing Human Resources. Mason: Cengage Learning.
Damp, D. (2008). The Book of U.S. Government Jobs - 10th ed. Bookhaven Press LLC.
Sims, R. (2002). Organizational Success Through Effective Human Resources Management. Westport: Greenwood Publishing Group.
.jpg)
Posts
0 comments:
Post a Comment