I set a salary range for a job posting by combining internal role value, external market evidence, and the organization’s compensation structure. I do not choose a range only from the previous employee’s salary or the lowest number likely to attract applicants.
I define the level and scope first
I confirm responsibilities, decision authority, team impact, required expertise, location, and working conditions. A market title is useful only when it represents comparable work.
I review multiple market sources
I compare reliable salary surveys, public postings, internal hiring data, and relevant geographic information. I note the date, sample, industry, and whether figures represent base pay or total compensation.
I protect internal consistency
I compare the proposed range with employees doing similar work and with adjacent levels. A new-hire range that ignores internal equity can create immediate retention and fairness problems.
I decide what the minimum and maximum mean
The minimum should be a credible salary for a qualified hire, not a theoretical number nobody would receive. The maximum should reflect the role’s level and the experience that could justify placement near the top.
I consider the full package
I document bonus, commission, equity, benefits, shift premiums, and geographic adjustments separately. Candidates need to understand which components are guaranteed and which are variable.
I follow applicable transparency rules
Pay-posting requirements differ by location and can change. I use qualified HR or legal guidance to confirm current obligations and avoid misleading ranges.
I review outcomes
I track acceptance, negotiation, employee pay position, and whether the range attracts the intended level. I update it when the job or market changes.
A useful range supports consistent decisions before a candidate is selected. It should be explainable to applicants, current employees, and decision-makers using the same logic.