Salary Band Example

A salary band is a range of pay established by an organization for a specific role. It defines the value of each role based on market and internal value, and provides opportunities for more effective pay management .
alary bands are pay ranges established by individual organizations for specific roles. They define the value each role has, based on market value and internal value, and provide opportunities for more effective pay management .

Jobs with similar work requirements are grouped together within a salary range. All employees within these jobs reside in the same salary band. Employees just above senior level have their own higher band. These bands can overlap and often do. However, recently promoted employees who move up to the next highest band don’t always see an increase in salary due to the overlap. Even still, their potential salary increases due to a higher maximum within the new band .
alary bands differ from pay scales which often come up in negotiations. Pay scales provide both minimum and maximum amounts that guide both parties in coming to a decision about pay. Salary bands, however, rank job pay by experience, education and level of responsibility. Individual organizations set their own standards for these areas, with location and finances having the most significant impact .

The federal government uses the general schedule payscale, a hybrid pay banding system. These salary bands have 15 grades, each with specific education requirements and job responsibilities and 10 steps that are dictated by seniority . Other organizations may have different salary bands depending on their needs.

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