Salary Bands and Pay Grades

Structured pay ranges that set a minimum, midpoint and maximum salary for each job level within an organization.

Overview

Employers group roles into levels based on scope and responsibility, benchmark each level against market surveys, and set a range around the market midpoint. Position within the band, often measured by compa ratio, reflects experience and performance. Bands make pay more consistent and are central to pay transparency laws that require posting ranges. Broadbanding uses fewer, wider ranges for flexibility. Hitting the top of a band usually means promotion is the only route to large raises, a common source of frustration for long tenured staff.