Asked by Lehia Coloma on May 12, 2024
Verified
What criteria are used to determine movement through the pay range?
Pay Range
The span of possible pay rates set by employers that determine the minimum and maximum amount that can be offered to an employee for a specific job.
Movement Through
Generally refers to the progress or advancement of individuals within an organization or the flow of processes in operations.
- Recognize and differentiate various compensation structure terms, such as pay range, broad banding, and market anchor.
Verified Answer
SB
Sharon BrownMay 16, 2024
Final Answer :
The three most common criteria used to determine movement through the pay range are experience,seniority,and performance.In some cases,all three are used.There are many combination possibilities.Some firms,for example,use the midpoint of the range as a control point.Employees are allowed to reach the midpoint of their range based on seniority.Beyond the midpoint,pay increases are based on performance.Most pay ranges have six or seven increments within a pay range.Some firms do not use fixed steps or increments at all.
Learning Objectives
- Recognize and differentiate various compensation structure terms, such as pay range, broad banding, and market anchor.