Base salary ranges seem simple. But when you start using them to make competitive employee compensation decisions, it is good to look at all the parts.

You have the minimum, midpoint, and maximum of the range.

· These numbers require midpoint progression and range spread decisions. And, of course, you must decide what the midpoint is aligned to in the external market. In this example, that is the 50th percentile.

· In a 2023 survey by WorldatWork and Deloitte, 91% of 659 employers used the 50th percentile for their midpoints.

Then you have the employees paid above and below the salary range.

· Employees are “green circled” if they are paid below the minimum.

· Employees are “red circled” if they are paid above the maximum.

Finally, you use range penetration (or compa-ratio) to assess how employees are progressing through the salary range.

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