Salary FYI

Salary Range

Economics

The spread between the minimum and maximum pay offered for a particular job, typically expressed as a low-high range in job postings or compensation structures.

## Salary Range

A salary range defines the floor and ceiling of pay for a particular job. It provides flexibility for differences in experience, skills, and negotiation.

### Components

```
Minimum → Midpoint → Maximum
$70,000 → $90,000 → $110,000
```

### Range Spread

```
Range Spread = (Maximum − Minimum) ÷ Minimum × 100
```

Typical spreads: 40–60% for professional roles, 30–40% for entry-level, 60–80%+ for executive positions.

### Pay Transparency Laws

Colorado, California, New York, Washington state, and the EU now require salary ranges in job postings. This has transformed salary discussions by making ranges publicly available.

### How Ranges Are Used

- **Hiring**: New hires are typically placed in the lower third.
- **Promotions**: Usually at or near the new range's minimum.
- **High performers**: Can reach the upper quartile.
- **Red circle**: Employees paid above the range maximum (frozen until range catches up).