Create A Grade Ladder With Or Without Grade Steps

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Grade Ladders

Grade ladders group grades and grades with steps in the sequence in which your workers typically progress.

You create grade ladders either from the Manage Progression Grade Ladders page (in the Compensation work area) or from the Manage Grade Ladders page (in the Workforce Structures work area).

Grade ladders describe the grades and steps to which a worker is eligible to progress and compensation value associated with that grade and step. You may create different grade ladders for your enterprise: one for technical grades, another for management grades, and a third for administrative grades.

Ladders with Grades

You create ladders with grades by building a hierarchy of grades that were created without steps. When you set up this type of ladder, only grades without steps are available to add to the ladder. You can’t create a grade ladder with a combination of both grades and grades with steps.

You don’t define any grade rates when you set up a ladder with grades; the rates for the grades within the ladder are inherited from the rates that were added when you set up the grades. To add or edit rates for grades, you must use the Manage Grade Rates task.

Ladders with Grade Steps

You create ladders with grade steps using grades that were created with steps. When you set up this type of ladder, only grades with steps are available to add to the ladder.

You define step rates when you set up the ladder, and the rates are unique to each ladder. You can’t share step rates between grade ladders.

In Oracle Fusion, creating a grade ladder (with or without grade steps) is typically done through the Compensation Management module. A grade ladder provides a structured progression for employees within an organization, aligning roles with salary ranges or steps. Here’s how you can create a grade ladder:

1. Navigation to Setup

  1. Sign in to Oracle Fusion HCM.
  2. Navigate to the My Client Groups section.
  3. Select Compensation → Grade Ladders.

2. Create a New Grade Ladder

  • Click the Create button to start defining a new grade ladder.

Fill in General Details:

  • Name: Provide a unique name for the grade ladder.
  • Effective Date: Set the effective date for the grade ladder.
  • Grade Structure: Specify whether it’s with or without grade steps.
  • Legislative Data Group: Choose the relevant legislative data group (LDG).

3. Add Grades (without Steps)

  1. Under the Grades section, click Add Row to include grades that will be part of the ladder.
  2. Select the grades from the list of existing grades defined in the system.
  3. Continue adding as many grades as necessary.

4. Add Grades with Steps

  1. If the grade ladder involves steps, ensure you select a Grade Ladder with Steps.

  2. For each grade, define the steps. You will either:

    • Select from predefined grade steps, or
    • Create new grade steps directly in the ladder (if allowed by the configuration).

  3. For each step, assign details such as:

    • Step Name/Number.
    • Minimum/Maximum Salary for each step.
    • Duration between step movements (if applicable).

    This defines how employees progress through the steps within a grade.

5. Define Progression Rules (Optional)

If you want Oracle Fusion to manage automatic progression between grades or steps, you can define the progression rules:

  • Automatic Progression: Set rules for when employees are automatically promoted to the next grade or step based on time in grade or performance.
  • Manual Progression: Require managers or HR personnel to manually approve promotions to the next grade or step.

6. Review and Save

  • Once all grades and steps are added, review the grade ladder for accuracy.
  • Click Save and Close to finalize the grade ladder.

7. Assign the Grade Ladder

After creating the grade ladder, it can be assigned to jobs, positions, or employees as part of their compensation structure.

Note: The flexibility of having a grade ladder with or without steps allows you to tailor the structure according to organizational policies. A ladder without steps provides broader salary ranges, while steps allow for more granular progression.

A grade ladder represents the progression of grades throughout an organization

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