See below image for the Salary band template diagram. Salary bands, often called pay bands, are pay ranges established by individual organizations for specific roles. They define the value each role has, based on market value and internal value, and provide opportunities for more effective pay management. How do salary bands work?
However, their salary potential will increase since their new band has a higher maximum point. Your organization should leverage multiple sources of market data to help determine salary differences between adjacent grades.
After your salary bands are built, be sure to frequently monitor the market to keep your bands’ ranges current. If there are any significant changes in external job prices, update your ranges so your compensation practices can continue to positively impact employee engagement and talent retention.