HR Glossary

What is Pay Grade?

A numbered level within an organization's compensation structure that groups jobs of similar value, responsibility, and complexity. Each pay grade has an assigned salary band that defines the pay range for all positions at that level.

Why it matters in hiring

Pay Grade comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

• Passive Candidate
• Pay Band
• Pay Equity
• Pay Equity Act (Canada)
• Pay Scale
• Pay Stub (Payslip)
• Pay Transparency
• Pay Transparency Directive

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.