Many of you are doing compensation benchmarking to update your pay grades and base salary ranges for the new year. And as you do this analysis, you may be wondering what the norms for midpoint progression and range spread are.

Midpoint Progression: It represents the percentage increase in a salary structure midpoint from one pay grade to the next.

·        Non-exempt staff: 5% to 10%
·        Exempt and professional staff: 8% to 15%
·        Managers and Directors: 10 to 15%
·        Vice-President and Executive: 15% to 20%

Range Spread: It is the percentage difference from minimum to maximum of a pay grade.

·        Manufacturing or service jobs – 20% to 30%
·        Clerical or technical jobs – 30% to 40%
·        Supervisory or professional jobs – 40% to 50%
·        Management or executive jobs – 50% or more

Broadbands use a range spread of 80% to 200%. However, I don’t see this approach used much anymore. It does not tie pay opportunity to external market rates in a meaningful way. It does not provide precise midpoints for the various jobs assigned each broadband. And there isn’t a real cost control mechanism with broadbands. It’s good for organizations that are flat and have little hierarchy. These employers also typically value skill and knowledge development with lateral not promotion recognition.

Sources: compensation.blr; peoplecentre