A standard rate is a "rate classification". When you add a new employee, instead of choosing "custom hourly rate", you would choose a rate class to be applied to this employee. When that rate class gets a raise, each employee with that setting will receive the raise.
For example, a restaurant hires all new servers at $11.50/hour and assigns them a standard rate of Server1. After their first year, they get a raise to $12.00. When a server is moved up, instead of updating their compensation policy, update their standard rate classification to Server2.
At the beginning of a new year, the restaurant decides to raise all new servers to $12.00 and experienced servers to $12.50. They would update the standard rate on Server1 and Server2 directly, and all servers' compensation policies would be updated at once.
You will see the details of the standard rate appear. Click "Save" and you are complete! This is now available to be added to employee profiles.