Oracle HRMS provides alternative approaches that support the common grade and compensation models, see Recognizing Your Grade Implementation Model. You can use either the Non-automatic Step Progression or the Grade/Step Progression (GSP) approaches to implement grades and associate compensation and benefits to grades.
If you follow the Non-automatic Step Progression approach, you use grade rates, pay scales, scale rates, and grade scales to relate grades or sub-grades to pay.
Using grade rates, you can either enter a fixed value for each grade, or minimum, maximum, and mid-point values.
You may have a salary administration system in which the actual level of pay normally falls between a minimum and a maximum value for a grade.
See: Grade Rates to Relate Pay to Grades.
Using grade scales, you can associate each grade with several points on a pay scale, and enter compensation values for these points.
You may be using a step based system of progression points within grades, in which each point has a fixed value in a pay schedule or table. In Oracle HRMS this is a pay scale.
See: Pay Scales to Relate Pay to Grades
If you use the Grade/Step Progression approach, you use the Grade Ladder to group together grades (and grade steps) and then define system-based rules for their progression. Grade/Step Progression enables you to move large numbers of employees from one grade or grade step to the next, and update their salaries automatically. GSP also gives you the ability to vary employee pay depending on employees' individual circumstances through the use of criteria salary rates.
See: Administering Grade/Step Progression
Additional Information: Self-service managers can view and update the grade step and grade point of their employee's salary.
See: Compensation Workbench section of Self-Service Function
You may choose to use either of the above features to manage grades and pay depending on the requirements of your organization. This section gives a comparison of the two approaches.
If you choose to administer grades and pay in your enterprise without implementing grade ladders, you can:
Manually increment grade step placements using the Grade Step Placement window from the Assignment window.
Automatically increment grade step placements using the Increment Progression Points process. However, this process does not support predefined progression rules for progressing employees on grade steps. When you run the Increment process, you specify various parameters that restrict the assignments that the application should process.
Use the salary element and a Payroll formula to update employee salary when there is a grade or step change. You cannot automatically update employee salary whenever there is a grade or step change.
Automatically progress employees only up to the ceiling step of their current grades. You cannot automatically progress employees beyond the ceiling of their current grade, or the assignment ceiling that you have set for an individual employee.
Using the Grade/Step Progression approach, you can administer employee progression and salary management automatically. The Grade/Step Progression features support:
Automatic progression of employees by using predefined progression rules.
Automatic salary updates that synchronize with grade or step changes for an employee. You can use a salary element to update employee salary without using a payroll formula.
Progression of employees beyond the ceiling step of their current grade to the next higher grade on the grade ladder.
Variable rates of pay depending on an employee's individual circumstances.