A salary scale is a document or table that determines an employee’s pay, often used by unionized companies to ensure fair treatment. Some companies use informal scales or arbitrary decisions to determine pay.
A salary scale is a document or table designed to determine how much an employee will earn at their job. Many companies have a scale set up before hiring new employees, and may show it to prospective employees before they are hired. In this way, the job seeker can get a good idea of how much they can expect to earn while working for the company or business.
Not all companies use a salary scale to determine employee salaries. Some companies seem to arbitrarily decide how much they will pay an employee to start working for the company. Subsequent increases are determined in a similar way. Sometimes a company without a standard scale will determine subsequent pay increases based on job performance or overall company performance in the past year.
Similarly, some companies do not have a formal salary scale that is shared with employees, but do have a sliding scale to help them determine the amount of money to offer to new employees. This informal scale can also be used by the company to determine how much pay raise the employee will be offered.
Typically, a unionized company will use a pay scale. Often, it is presented in a table format. For careers that require special education or training, the pay scale will typically have additional years of experience and the amount of education or training completed on top. The employee can then find the point where these two factors meet to determine the amount of pay they will receive during the year. If the job does not require special education, the chart will only show salary for a specific number of years of experience.
Union representatives meet with the company to determine the wages presented in the salary scale. The ladder itself is part of the contract between the company and the union. The idea behind this is to ensure that all employees are treated fairly and receive the same pay for the same experience and education. In this way, favoritism in the form of a salary increase is eliminated. Although the wage scale is most often associated with unionized companies and businesses, non-union companies sometimes use one as well.
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