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Tom Farmer demonstrates how to create a regressed salary range structure using employee data in a spreadsheet. Different companies use different methods for pay structures - some have function-specific ranges, while others have simple structures. The tutorial includes converting part-time salaries to full-time equivalents and discusses the Patterson grade method for job evaluation. This method considers factors like judgment, skill, and complexity to determine salary bands and sub-grades. The example shown is for a strategic level role in band E.
