Pay Range

A "pay range", also known as a salary range or compensation range, is a predefined spectrum of salary levels set by an organization for a specific job position. It includes the minimum, maximum, and midpoint salaries that can be offered to an individual in that role. Establishing a pay range allows companies to define the boundaries within which they can compensate their employees based on factors like job responsibilities, qualifications, experience, market rates, and internal equity considerations. This structured approach can guide HR professionals and managers in various aspects such as hiring, performance evaluations, promotions, and salary negotiations, ensuring transparency and equity in compensation decisions, but they need to provide enough flexibility to allow for skills-based pay and dynamic changes of team- and project-based work.