This factsheet was last updated in January 2016.
What is pay progression?
Pay progression is the process by which an individual employee reaches higher levels of pay within a pay grade or band. It’s often regarded as the measure of ‘real’ growth in pay. It’s distinct from pay rises linked to inflation (the ‘cost of living’) and pay rises associated with a formal promotion to a higher grade or band.
Organisations may put pay progression systems in place to:
- support business strategy by encouraging and rewarding desired characteristics or behaviour in employees
- maintain competitiveness of pay while controlling payroll costs within set parameters (including affordability)
- provide employees with a fair and transparent process by which individual pay increases are determined.
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- What is pay progression?
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