Understanding Salary Bands And Job Grades

Salary bands and job grades are two important concepts in the field of human resources. According to a [source](^1^), job grades are levels that group similar jobs with comparable responsibilities and qualifications, while salary bands (or pay ranges) are how you define the target pay for employees within job grades. Pay bands are broader than pay grades and may encompass many or a few different pay grades. Salary bands help when making offers, retaining employees, and planning for future growth.

Each job grade’s pay band has a rate range, with a lower, middle and upper salary. It establishes what an employee with a specific job grade can be paid in that position, while still giving the employer the freedom to differentiate that salary, based on experience, individual performance and geography ?.
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 ?.

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