Pay bands are the salary ranges that employers assign to each position in the organization. These salary scopes have many names, including pay scale, band salary, or National Occupation Classification (NOC) codes. The federal government maintains a database of NOC codes that it organizes by sector, industry, and position. While many companies use this as a reference for their internal pay bands, there aren’t mandatory pay scales outside of paying the legal minimum wage. A pay scale allows companies to create a budget for each position by establishing a minimum and maximum payment amount for a specific role. This also enables candidates to negotiate their earnings and can entice more experienced candidates to apply for the position.
Job bands refer to the compensation range of a position, while job grades refer to the specific compensation an employee receives. Companies determine job bands based on specific positions and responsibilities. Experience, education, certifications, skills, and responsibilities all affect which job grade a company classifies an employee.
Using salary bands in career progression allows recruiting managers to offer a satisfactory salary structure to the employees while also keeping the company budget in check, even in case of fast career progressions or promotions.
For more information, you can refer to the following resources:
– [Indeed.com](^1^)
– [Indeed.com](^2^)
– [Indeed.com](^3^)