Salary range is the employer’s range of salary to their employees. Depends of employer’s business type and scale, they usually will set a minimum pay rate, a maximum pay rate, and a series of mid-range opportunities for pay increases. This simple salary range calculator is an Excel spreadsheet to help you managing those salary range. You can edit them to match them with your own policy.
The salary range is usually determined by market pay rates, established through market pay studies, for people doing similar work in similar industries in the same region of the country. Furthermore, pay rates and salary ranges are also set up by individual employers and recognize the level of education, knowledge, skill, and also experience.
How to Design Salary Range Table?
There are several considerations when designing salary range table :
- Scale of your industry environment where you business falls into.
- Number of employee levels. Set this level carefully. If you plan to have hundreds or thousands employee, make more levels as a reserve for future plan.
- The salary range should reflect the overlap in salary ranges between several levels. It will allow career development and flexible pay increases.
- Executive-level positions should have the largest set of salary range while lowest-level positions have the lowest one.
- Demographic and market factors. These factors include the number of people available to perform a specific job in the employer’s area and competition among employees with similar skills and education.
Remember, you want to create salary ranges that motivate your employees to contribute. You also want to attract and retain the most superior employees to work in your organization. You can also find references to companies similar with yours. A growing, entrepreneurial company, with variable sales and income, may find itself better off controlling the levels of base salaries. They can use bonus as part of attracting their employees. That company will get the benefit, when money is limited, they are not obligated to have high base salaries. A strategically forward-thinking company, with fairly stable sales and earnings, may put more money in base salary.
Do this plan carefully. Overpaying your employees could become economically unsustainable and unfair to longer-term employees who may make less than new employees. While underpaying your employees, even if an employee accepts a job, could make them not focusing on their jobs and their attendance while trying to look for a new job somewhere else.
How this Employee Salary Range Calculator Can Help You?
This spreadsheet is created to give you ideas on how to create your own. It has three columns for three different level range of salaries. It has formulas to help you find minimum, mid or maximum salary. Just set which number that you want to have as your target salary. All values in respective columns will be calculated automatically.