Which statement best explains how to establish pay grade sizes using the equal interval approach?
A) Look for natural breaks between clusters of jobs when setting up the grades.
B) Increase the grade widths for higher-value jobs but not necessarily by an equal percentage.
C) Reduce the number of pay grades by creating large bands.
D) Make the point spreads equal for all pay grades.

Question

Quizplus · Accepted Answer

The equal interval approach involves creating pay grades with equal point spreads. This means that the distance between the minimum and maximum pay for each grade is the same. This approach ensures that there is consistency in how pay is structured across different levels or positions within an organization. Therefore, making the point spreads equal for all pay grades is the best way to establish pay grade sizes using the equal interval approach.

Which Statement Best Explains How to Establish Pay Grade Sizes