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In this tutorial, Tom Farmer explains how to create a simple salary range structure. The process involves gathering the necessary employee data, such as name, title, grade, and function. Some companies use function-specific ranges, while others have a uniform structure for everyone in the same grade. It is important to have accurate salary information, including converting part-time salaries to full-time equivalent salaries. The tutorial also introduces the Patterson grade job evaluation method, which considers factors like judgment, accountability, knowledge and skill, impact, and complexity to determine bands and sub-grades. For example, band E represents a strategic level role grade.