Fixed Compensation Plan Types

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Posted on by PaladinSteve

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Can someone explain what difference, if any, there is between Grade, Band and Step compensation plan types? I can't find any documentation to explain what affects in the system there are from choosing one type or another, and the generic HR definitions I'm finding online don't really provide any guidance either. Is it just AX offering choices of nomenclature, or is there a real impact in choosing one versus another?

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Benefits and Compensation

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Nicu Aleman 2,587 on at

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Hi Steve,

the difference between bands, grades and steps is due to the granularity of the fixed compensations. Bands offer the widest and the most flexible fixed plan, were you choose between a minimum and a maximum amount. Grade is more granular and steps are the smallest, incremental way of changing someones fixed compensation.

usually, when working in Services or when working with White-Collar jobs, my customers are using bands and grades, but when working with Blue-Collar jobs they use steps.

I also had customers (in Professional Services) that did not use steps and grades at all.

regards,

nicu

read my blog: https://talent.asgcrm.com

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