In Oracle Fusion, Grade Rates are used to define salary structures and manage compensation for different job grades within an organization. Grade rates specify minimum, midpoint, and maximum salary values for a given grade, allowing companies to standardize pay ranges for employees based on their job grades.
Here’s an overview of Grade Rates in Oracle Fusion:
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Grade Rate Definition: Grade rates set boundaries on compensation for each grade. For example, a job grade might have a range with a minimum of $50,000, a midpoint of $75,000, and a maximum of $100,000. These values provide guidelines for compensation decisions, such as setting salary offers for new hires or adjusting existing employees’ pay.
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Pay Ranges: You can assign different types of grade rates, like annual, hourly, or daily rates. Grade rates can vary by location, so organizations can align pay structures with market rates in different regions.
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Grade Ladder: When used with a grade ladder, grade rates help build a career progression path within the organization, allowing employees to move up within a defined structure.
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Eligibility Criteria: Grade rates can be set with eligibility rules, defining which grades apply to which jobs, locations, departments, or other organizational elements.
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Compensation Planning: Grade rates are essential for budget planning, helping the organization control labor costs while maintaining competitive salaries in the market.
Oracle Fusion’s Compensation Management module lets you define, manage, and review grade rates, ensuring that your organization’s pay structures remain consistent and aligned with HR policies.
We can add rates to grades through Workforce Structures