Grade Rate and its impact on workforce compensation

Summary:

How grade rate impact workforce compensation?

Content (required):

We know that in cloud hcm salary basis is connected to grade rates which internally is connected to grades having midpoint, maximum & minimum values. The salary basis with appropriate annualization factor is tagged to an employee so that salary amount can be provided.

From the impact per se, is there anything else to it? How grade step progression differs in its impact on workforce compensation versus grade rates impact on workforce compensation.

I am looking for best practices keeping in mind grade rate/ GSPs vis-a-vis workforce compensation (any annual plan cycle run for an org etc)