Lexique RH

Salary Grid: Definition and HR Best Practices

What is a salary grid? Definition, construction and usage to structure your remuneration policy in SMEs.

7 min de lecture
Salary Grid: Definition and HR Best Practices

Sommaire

−25 %
Reduction in unjustified remuneration gaps
−50 %
Time saved in salary negotiation
+20 %
Improvement in retention
−60 %
Reduction in salary disputes

Salary Grid: Framework, not Strait-Jacket

A salary grid sets ranges with minimum and maximum. It guides negotiation without eliminating it. The objective is internal equity and external competitiveness, not absolute rigidity.

Definition of salary grid

The salary grid is a structured reference that defines remuneration levels for different roles, hierarchical levels or job classifications. It establishes ranges (minimum, median, maximum) for each category, taking into account experience, responsibilities, skills and market.

Example salary grid for a B2B services SME

Typical grid – SME with 50 employees

LevelTypical ProfilesAnnual Salary RangeInternal Gap
Level 1 – Junior (0-2 years)Assistants, junior project officers28,000 – 35,000 GBP25 %
Level 2 – Experienced (3-5 years)Project officers, sales reps33,000 – 45,000 GBP36 %
Level 3 – Senior/Expert (6-10 years)Senior project managers, sales managers42,000 – 58,000 GBP38 %
Level 4 – Manager (10+ years)Service managers, operational directors55,000 – 75,000 GBP + 20 % variable36 %
Level 5 – LeadershipMD, CFO, department directors70,000 – 100,000 GBP + 30 % variableVariable

Weighting criteria to build your grid

  1. 1

    Education and Qualifications (20-30 %)

    Secondary, Diploma, Degree, professional certifications.

  2. 2

    Experience (25-35 %)

    Years of relevant experience in the field or sector.

  3. 3

    Responsibilities (20-30 %)

    Team management, budget managed, impact of decisions, autonomy.

  4. 4

    Technical Skills (15-25 %)

    Rare expertise, certifications, mastery of specialised tools.

  5. 5

    Working Conditions (5-10 %)

    Difficulty, frequent travel, on-call duties, unsociable hours.

  6. 6

    Market Adjustment

    Geographic coefficient if necessary (e.g.: +15 % London). Document this rule clearly.

FAQ – Salary Grid

Should I publicly display my salary grid in job offers?
Not mandatory, but highly recommended to mention at least a range. Candidates increasingly demand it and transparency on remuneration significantly increases application rates whilst naturally filtering profiles outside the range.
How to manage gaps between long-standing and new hires for the same role?
If you need to recruit above what your current colleagues earn, your grid is outdated. Adjust it and give internal raises before recruiting, at the risk of creating resentment and costly turnover on already-in-place talent.
How to integrate the variable portion into the salary grid?
The grid covers the fixed component. The variable portion (commissions, performance bonuses) is added according to specific rules documented separately. For sales roles, state the total package (fixed + target variable) for transparent communication from the outset.
Should the salary grid be reviewed every year?
Yes, at minimum annually to remain competitive. During periods of inflation or tension on certain profiles (tech, healthcare), six-monthly review may be necessary. Base this on updated sectoral salary surveys.
What if a candidate refuses an offer because the salary is too low?
Analyse whether this is an isolated case or a trend. If multiple candidates refuse the same profile, your grid is no longer market-aligned. Update it with current sectoral benchmarks. Don't destructure your grid ad hoc without reviewing the whole to avoid creating internal inequalities.

Manage your remuneration policy with Aurelia

Assign salary ranges to each role type, track candidate expectations against your grids and quickly identify market gaps.

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