How Managers Can Determine a Salary Range for a Job Opening

Salary ranges are an important tool for hiring managers. Pay ranges allow you to budget for the future while attracting the candidates your organization needs to stay productive and efficient.  But when you determine a salary range, you are doing more than guessing what a job should be paid. There are steps you can take to understand what a competitive rate is and what type of talent could be attracted by different rates.

Compensation questions should be answered before a hiring manager posts a job opening. There are employment experts, such as those at Staffing Network, that can walk you through possible compensation structures for support staff, whether you are seeking temporary workers or permanent employees.

Determine a Salary Range for a Job Grouping

Many organizations find it helpful to have human resources analyze positions, create current job descriptions, and group the positions with similar pay together. 

Examples of job groups:

  • Administrative roles
  • Production positions
  • Creative employees
  • Management jobs
  • Executive level positions

Then, each group could have a set pay range. Depending on the size of your organization, it may be necessary to set up salary ranges within the groupings as well. One area of production could require more experience which could require a higher salary range to attract seasoned talent, for example.

The level of responsibility in each position could also be assessed. Some organizations find giving each position or job a responsibility level can help determine a salary range. Whatever method your organization opts to employ, creating clear parameters for compensation can be helpful in hiring practices, promotions, and establishing future goals. 

Doing a Deep Dive into Organizational Approaches

Of course, having a clear philosophy about how a business approaches pay is recommended. It can take time for executives to talk through hiring strategies, but once a position is firmly taken, it will provide clarity moving forward.

For instance, if your organization is interested in attracting workers away from other businesses, setting a higher salary range could help. In these situations, a company could decide to research the going rate for a current job opening and then post their position at a higher rate. 

When an organization lags in pay, it can be helpful to offer other benefits to qualified candidates, from paid time off to on-the-job training. A worker may accept a lower rate if they know they are building their skill set, a talent that could lead to a higher rate later, either within the same company or at another business. 

If you are ready to develop a comprehensive talent acquisition strategy for your organization, an employment expert can help. There are proven approaches to attracting and retaining high-quality employees. 

Could you use assistance establishing salary ranges to draw top talent? Staffing Network Is a full-service staffing and recruiting firm that specializes in light/skilled industrial, engineering, and operations professionals. Our experts can help you find the best person for your company. Connect with the Staffing Network today.

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