Salary bands establish the pay range for positions at each grade level. They provide structure for compensation while allowing flexibility within the range. Bands enable market-competitive pay while maintaining internal equity.
Band Elements
Bands typically define minimum (entry point for the grade), midpoint (target for fully competent performers), and maximum (cap for the grade). The spread from minimum to maximum might be 40-60% or more for higher-level positions.
Position in Band
Where an employee falls within the band typically reflects experience, performance, and time in role. New employees often start lower in the band. Strong performers progress faster. Those at maximum may need promotion for further increases.
Band Management
Bands require regular review against market data and adjustment for inflation. Employees below minimum (green circled) may need immediate adjustment. Those above maximum (red circled) may have pay frozen until the band catches up.