salary progression

Quick Reference

Increases in salary that result from movement up an incremental scale, pay range, or band. Such movement may be determined by several factors, including seniority, performance rating, assessments of skill or competence, or success in obtaining formal qualifications. Seniority-based progression, in which increases in salary are awarded with each year of service, is based on the assumption that competence or performance increases as employees become more experienced. There has been a trend in recent years, however, to try to measure competence and performance directly, and it is now common for payment to be determined through a formal system of performance management. As a consequence, employees with the same level of seniority may progress through scales and ranges at different speeds and to different levels. Other recent changes include greater discretion for line managers in determining progression and greater scope for progression (i.e. to increase salary whilst staying in the same grade) within broad-banded salary structures. [See broad-banding.]

Subjects: Human Resource Management.

Reference entries