A system and method of soft decision decoding is disclosed. An average signal magnitude is generated from a plurality of message bits. A scale factor is generated in accordance with the average signal magnitude, and soft decision bits are generated by processing the message bits using the scale factor. The scale factor and soft decision bits are transmitted and received across a communication link. The soft decision bits are rescaled using the scale factor and then rounded to the nearest integer value. The rounded values are then decoded. The soft decision bits are generated using a quantization having at least two bits, and soft decision bits are preferably rescaled using at least five bits.