What Does a Hiring Range Mean on a Job?

A hiring range is the minimum to the maximum amount of money that a company will pay a potential employee.

Setting a Salary Range

Evaluate the salaries of the current employees versus their job performance. Balance the salaries of the current employees and their competencies with the proposed hiring range for the job.

Candidate Evaluation

The hiring range for the job affects the type of candidates that apply. If the hiring range is wide, expect to see candidates with little to senior-level expertise applying for the job.

Negotiation

For hiring managers and job seekers, the hiring range allows for negotiation of salary. Both parties understand the maximum amount that is available.

Options

A hiring range may not only include money. It can also include benefits such as extra vacation days, stock options, or other company perks.

Caution

Salaries that are inconsistent based upon EEOC guidelines can lead the company into legal battles. Consult with the company's HR department or an HR specialist to ensure there is equity across the current employee base versus the potential employee's salary offer.

References

• Salary Range Expectations
• Use a Hiring Range to Minimize Pay Equity Issues
• Salary Range Structure Practices

Resources

• Society for Human Resources Management (SHRM)