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Manager's Toolkit

Compensation

Graphic shows three points of a pay range with the minimum point representing the average start rate in the job market, the midpoint (or market rate) representing the 50th percentile or middle of the job market, and the maximum point representing the average top rate in the job market. Pay structures are designed to provide pay levels that are externally competitive, internally equitable and cost effective. Pay structures group jobs of equal value or worth into pay grades. Pay ranges reflecting market value are then assigned to these pay grades. Each pay range has a minimum, midpoint (market rate) and maximum – aligned with best pay practices. As institutional finances allow, pay grades will be adjusted to reflect current market rates and jobs may be assigned to a new range. Jobs may move up, down or remain in the same grade.


UAB General Structure