Careers Succeeding at Work Learn About Employee Grade Levels Print Halfpoint Images / Getty Images Succeeding at Work Management & Leadership Human Resources Employee Benefits Table of Contents Expand Sample Employee Grade-Level Descriptions Grade Levels and Compensation The Role of the HR Department By F. John Reh F. John Reh F. John Reh is a business management expert, with more than 30 years of experience in the field. Learn about our Editorial Process Updated on 08/29/19 Many employers use an employee grade-level system that helps differentiate between positions and standardize compensation across equivalent skill sets and responsibilities. This type of system helps ensure fair and consistent treatment and compensation for all employees. Sample Employee Grade-Level Descriptions Here are examples of employee grade-level descriptions from individual employees up to the Vice President level: Level A: Entry Level Individual Contributor Individuals at this level usually follow standard work routines. The following parameters may also apply: Work under close supervision Have little decision-making ability Have no budgetary responsibility or ability to spend without approval Have less than three years of relevant experience Level B: Experienced Individual Contributors Individuals at this level usually have procedural or systems experience. They may also: Work under general supervisionMake decisions based on established proceduresHave nominal budgetary responsibility or ability to spendHave three to five years of relevant experience Level C: Managers and Senior Technical Professionals and Individual Contributors Individuals at this level must have command of the procedures and systems used. They may also: Work to specific measurable objectives requiring operational planning skill with little direct supervisionHave considerable latitude for making decisions within their unitHave involvement in the hiring, development, and related personnel processesHave budgetary responsibilitiesExercise crucial people skillsHave five to seven years of relevant experience Level D: Directors Individuals at this level must have a thorough understanding of the theoretical and practical application of the principles of their profession. The following parameters may also apply: Have significant latitude for making decisions for their operational or functional unitsHave hire and fire authority over team membersHave direct expense responsibility for significant departmental or unit budgetsDemonstrate essential people skillsHave eight to ten years of relevant experience Level E: Vice Presidents or General Managers Individuals at this level are seasoned professionals in their field of expertise. They also: Give strategic guidance to the units under their controlDevelop and direct short-term and long-term goals for their unitsExercise broad decision-making latitude within their functional unitsHave complete budgetary control over the functions of their unitsMake use of essential people skills, including the ability to help develop subordinates develop in their careersHave more than 10 years of relevant experience Grade Levels and Compensation Position grade levels are usually governed by a set of compensation parameters described as a compensation grade level. Every position will have its own range of salary levels, from low to high. Additionally, there may be several layers of the compensation grades where the low, high and midpoint salaries vary from level to level. For example, the Level C Managers category may include junior manager, manager, and senior manager designations, all with their own compensation ranges. The Role of the Human Resources Department The process of developing, implementing and then refining position and compensation grade levels over time is typically the responsibility of the human resources department. Consider a vice president's request to create an all-new position. They would work with the human resources team in the following process: Describe the nature, scope, and responsibilities of the new role in detailDefine the criteria for education and background experience required for the roleEvaluate the budgetary and decision-making authority of the roleLook at the expected career progression for the positionCompare the role to others in the departmentCompare the role and job parameters to others in the industry Then, the human resources executive would decide which level the position falls into. They'd then apply the compensation matrix and document low, mid, and high ranges for compensation.