Pay grades provide a framework for compensation by defining the amount of pay available for a particular job.
The pay grade defines the level of responsibility performed within the job description of the position. Seasoned or experienced employees will be placed higher in the pay grade upon initial employment. Many Texas school district pay grades have a minimum (starting pay for individuals with no experience), midpoint (market pay for experienced personnel) and maximum (for highly experienced). Pay for newly hired or current employees can be minimum, midpoint, maximum or any point in between. Once initial pay is established at the point of hire, raises are applied annually as a percentage of the midpoint.
A job family is a series of jobs involving work of the same nature but requiring different levels of skill and responsibility. For example, it is quite common to find a bus driver's job in the same job family as maintenance workers and custodians.
Below is a sample of what a pay grade chart looks like with a 4 percent general pay increase: