Job Grading

Intermediate 👥 Human Resources

Definition

The process of assigning 'levels' to positions (Junior, Senior, Principal, Distinguished, Supreme Overlord) which have virtually no correlation to actual responsibility or pay.

Example Usage

Even though we both do the same work, you're a Senior Engineer and I'm just an Engineer, which apparently justifies paying you 20% more.

Origin

Systematic compensation approach developed in the mid-20th century

Fun Fact

Companies often have 47 different job grades, none of which are clearly defined

Source: Compensation Administration Standards

Related Terms

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