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Tom Farmer demonstrates how to create a simple salary range structure in this tutorial. To build a pay structure, having the right data is essential. A spreadsheet with employee data such as name, title, grade, and function is necessary. Some companies have function-specific ranges, while others have uniform structures within the same grade. Converting part-time salaries to full-time equivalent salaries is important. The tutorial also introduces the Patterson grade, a job evaluation method based on factors like judgment, accountability, knowledge, skill, impact, and complexity, resulting in banding and subgrading. The example shown is grade E, a strategic level role.
