Module 3/4 26 min
From points to grades and pay ranges
Step 1 / 4·Grouping points into grades
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Learning objectives — after this module you will:
- Group points into grades and build a range for each
- Balance internal fairness with external competitiveness
- Handle people paid outside their range
Add to Blueprint ~8 min
Grouping points into grades
Turn scores into a workable structure.
After scoring you have a list of roles with different point totals. If every point total were its own pay level the system would be unmanageable, so roles with similar scores are grouped into a GRADE.
Three notes on setting grades
- THE RIGHT NUMBER OF GRADES: too few and clearly different roles get grouped; too many and the difference between adjacent grades becomes meaningless while everyone constantly pushes for a regrade.
- PUT BOUNDARIES AT NATURAL GAPS in the score distribution rather than dividing evenly — this makes grade lines match real differences in work.
- SENSE-CHECK AGAINST REALITY: if a role lands in a grade that everyone in the organisation can see is wrong, go back to the JD and the scoring — there's usually missing information rather than a wrong instinct.
Key takeaway: Group similar scores into 6–12 grades, with boundaries at the natural gaps in the score distribution.