Developing U.S. Pay Grades & Base Salary Ranges

Here are the general guidelines I reference when developing a pay grade structure. 

Range spread is the percentage difference from minimum to maximum.

-            Nonexempt jobs – 25 to 30%

-            Exempt jobs – 40 to 50%

-            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

Midpoint progression is the percentage increase in a salary structure midpoint from one grade to the next.

-            Nonexempt staff – 5 to 10%

-            Exempt and professional staff – 8 to 15%

-            Managers and Directors – 10 to 15%

-            VP and above – 15 to 20%

Does this align to your approach?

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Sources: BLR, peoplecentre