There are different types of pay structures that companies use to determine employee compensation. One such structure is the broadband pay scale. This format is the least common and offers businesses the most freedom in determining an employee’s salary . Another structure is the traditional pay scale, which utilizes more pay grades and offers businesses less freedom in determining an employee’s salary . The third structure is the market-based pay scale, which is determined by what other employers in an industry pay their employees .
In addition to these structures, companies also use salary ranges to determine employee compensation. A salary range is the payment amount between a set of low to high numbers that a company wants to pay if they hire someone for a particular job. It includes a low, mid, and maximum salary point . For example, if you say that your salary range is $40,000 to $50,000, this means you’d like to receive a salary within those numbers .