With states and cities requiring companies to include salary ranges in job advertisements, employers are challenged with creating realistic, competitive, and fair fields for their employees. However, they also want to entice the best candidates without giving away too much negotiating leverage.
With this new pay transparency in the landscape, it is worth it for job seekers to understand how to interpret a stated salary range and know when something feels off.
Job Analysis
Knowing the range she is willing to offer you can help you establish a livable salary if you negotiate with an employer. You can also use online salary calculators to determine the average amount employees in your industry or field make.
Salary ranges are created during the job evaluation process when organizations group jobs in grades that have similar value to the organization. This internal grading system allows the company to recognize that while assignments in one step may fetch different market salaries, they are all of equal value.
Hiring managers often ask interviewees their desired salary and why they feel it’s appropriate. You can learn more about a firm by visiting its website, reading local news articles, surfing forums, and reading business publications.
The hiring manager will see that you’ve researched and understand the position’s value.
Job Evaluations
A salary range gives job seekers a good idea of what they can expect to make in that role and the growth potential. It also helps them decide whether or not a job is worth applying for.
A salary range must be calculated accurately not to mislead applicants. A good rule of thumb is to have the top end of the content be about 1.5 times the bottom.
However, if the bottom end of the range is too low, it can turn off qualified candidates before they even apply. This can waste both the employer’s and the applicant’s time, especially in a competitive hiring market. To avoid this, many employers use online research tools like salary calculators to determine an appropriate amount. This ensures the low point is high enough to cover a candidate’s basic living expenses. This is important for attracting talent. It also promotes a structured pay system.
External Salary Surveys
Salary ranges are often found in job descriptions and are an essential tool for applicants to consider. Depending on the industry, compensation may be broader or narrower. Regardless, applicants should think carefully about what they hope to earn and how much they value their worth. This can help them negotiate a fair salary when offered a role.
Many states and cities have enacted laws requiring employers to list the salary range for open positions. These laws address wage gaps and support salary transparency for millennial job seekers. However, many employers need help with how wide the range is to avoid leaving some candidates disappointed and others feeling discriminated against. Therefore, some employers still need to learn to include salary information in job postings. This can be a difficult task for hiring managers. However, some best practices can help.
Setting the Midpoint
Salary ranges are used as a tool to help companies establish competitive pay. They allow a company to say that it expects a minimum salary for the role, but they can also leave room to accommodate candidates above or below this number.
Job seekers often provide a salary range rather than a specific amount when asked about their requirements in a resume, job application, or interview. This allows them to be considered for a position while still being able to cover their basic living expenses.
It is essential to understand how the middle of a salary range is calculated so that you can be prepared when discussing compensation with hiring managers. Remember that prospective employers are doing their research, so they will also be aware of competitor salary ranges. It is best to offer an initial job offer close to the midpoint of your salary range so that it is enticing and will give you room to increase your salary with merit increases without suffering from salary compression.
