Pay grades and salary bands

SmartERP incorporates a modern total compensation engine (smarterp_hr_grade) built upon an established 16-Grade Structure evaluated via the international Hay Group methodology.

The 16-Grade Architecture (hr.grade)#

The grade matrix categorizes every job position across five distinct career bands:

+----------------------------------------------------------------------------------------------------+
|                               THE ASHEWA 16-GRADE CAREER & COMPENSATION HIERARCHY                  |
+-------+--------------------+-----------------------------------+--------------------+--------------+
| Grade | Career Level       | Typical Organizational Positions  | Education Required | Experience   |
+-------+--------------------+-----------------------------------+--------------------+--------------+
| G1    | Entry Operations   | Office Assistant, Driver, Guard   | 10th / 12th Grade  | 0 – 1 Years  |
| G2    | Junior Support     | Junior Clerk, Custodian, Courier  | TVET Level 2/3     | 1 – 2 Years  |
| G3    | Operational Support| Cashier, Junior Data Clerk        | TVET Level 4       | 2 – 3 Years  |
| G4    | Senior Support     | Head Cashier, Senior Clerk        | Diploma / Level 4  | 3 – 4 Years  |
| G5    | Officer I          | Junior Accountant, HR Officer I   | Bachelor's Degree  | 0 – 2 Years  |
| G6    | Officer II         | Accountant, HR Officer II, Dev I  | Bachelor's Degree  | 2 – 4 Years  |
| G7    | Senior Officer     | Senior Accountant, Dev II, QA Lead| Bachelor's Degree  | 4 – 6 Years  |
| G8    | Lead Specialist    | Senior Software Engineer, Lead PM | Bachelor's / Master| 5 – 7 Years  |
| G9    | Principal Expert   | Principal Architect, Legal Counsel| Master's Degree    | 6 – 8 Years  |
| G10   | Team Lead          | Tech Lead, Operations Supervisor  | Master's Degree    | 7 – 9 Years  |
| G11   | Unit Manager       | Finance Manager, HR Manager       | Master's Degree    | 8 – 10 Years |
| G12   | Senior Manager     | Senior Department Manager         | Master's Degree    | 9 – 11 Years |
| G13   | Associate Director | Engineering Director, Head of PMO | Master's Degree    | 10 – 12 Years|
| G14   | Director           | Corporate Director, Division Head | Master's / PhD     | 11 – 14 Years|
| G15   | Deputy Executive   | Deputy CEO, VP Operations, CTO    | Master's / Exec Ed | 13 – 16 Years|
| G16   | Chief Executive    | Chief Executive Officer (CEO)     | Master's / Exec Ed | 15+ Years    |
+-------+--------------------+-----------------------------------+--------------------+--------------+

Hay Group Factor Evaluation Methodology#

Every grade in SmartERP is calibrated using the three standard Hay Group evaluation factors:

1. Know-How: Depth of specialized technical knowledge, managerial breadth, and required interpersonal human relations skills.
2. Problem-Solving: The thinking environment (standardized vs. broadly defined) and thinking challenge (repetitive vs. creative innovation).
3. Accountability: Freedom to act, job impact on corporate revenue, and direct magnitude of organizational financial authority.

Mathematical Formulation of Salary Bands#

Rather than maintaining arbitrary static salary tables, SmartERP calculates salary bands dynamically using an anchored Base, Coefficient, and Range Spread:

$$ ext{Band Midpoint} = ext{Band Base} imes ext{Coefficient}$$

$$ ext{Band Minimum} = \frac{ ext{Band Midpoint}}{1 + \left(\frac{ ext{Range Spread \%}}{2 imes 100} ight)}$$

$$ ext{Band Maximum} = ext{Band Minimum} imes \left(1 + \frac{ ext{Range Spread \%}}{100} ight)$$

Four-Step Intra-Grade Progression#

Within each grade, an employee progresses through four distinct compensation steps based on annual tenure and merit evaluations:

$$ ext{Step Interval} = \frac{ ext{Band Maximum} - ext{Band Minimum}}{3}$$

• Step 1 (Entry / Minimum): $ ext{Band Minimum}$
• Step 2 (Developing): $ ext{Band Minimum} + ext{Step Interval}$
• Step 3 (Proficient / Market Target): $ ext{Band Minimum} + (2 imes ext{Step Interval})$
• Step 4 (Senior / Maximum): $ ext{Band Maximum}$

Grade Salary Band Range Progression:
[================= Step 1 =================] Entry Level
         [================= Step 2 =================] Developing Competence
                  [================= Step 3 =================] Fully Proficient (Midpoint)
                           [================= Step 4 =================] Maximum Ceiling

Tier-Based Allowance Rules#

SmartERP groups the 16 grades into four organizational benefit tiers, defining default monthly allowance entitlements:

Merit Progression Matrix (hr.merit.plan)#

Annual step increases are determined by a merit matrix combining the employee's performance rating with their current position within the salary band: