What is a pay policy line? What is its relevance?

Mathematically, a pay policy line shows the relationship between job evaluation and rate of pay. The line is plotted on a graph in which the vertical axis shows a range of possible pay rates, and the horizontal axis measures the points from the job evaluation. The line slopes upward from left to right, and if higher-level jobs are especially valuable to the organization, the line may curve upward to indicate even greater pay for high-level jobs. Using this line, an analyst can estimate the market pay level for a given job evaluation. Looking at the graph will give approximate numbers, or the regression analysis will provide an equation for calculating the rate of pay. The pay policy line reflects the pay structure in the market, which does not always match rates in the organization.