Employers use salary ranges to determine how much to offer interviewees who want to work for them. Job seekers use salary ranges to let employers know how much they'd like to earn. A salary range calculator can help make these determinations because no one wants to overpay or be underpaid for work.
Salary ranges are also provided for industry jobs. For example, Payscale shows that the average salary range for mechanical engineers in the U.S. is $56,000 to $100,000.
Writers for ChurchSalary explain the basics of working with salary ranges. When viewed graphically, these ranges look like a small hill that is divided into four vertical parts. On the left is the first quartile, the lowest 25 percent of salaries, followed by the second, third and fourth quartiles. The fourth quartile is the highest salary, and the median is located at the highest point of the hill. Many websites have these charts, and employers and job seekers use them to establish baselines for pay-range calculators. The U.S. Bureau of Labor Statistics is also a good resource for researching pay ranges.
Payscale has a free salary-range calculator; all you do is enter the job title and location. The screen that pops up shows you the range and median, so you don't need a salary midpoint calculator. Remember to consider the location where you'll be working; an account executive in Sheboygan, Wisconsin, typically earns less than one in Los Angeles.
When prospective employees are asked what salary they are looking for, it is best for them to respond with a salary range in line with the industry and location. In the best-case scenario, it matches up well with what the employer is offering, and if not, the arrangement might not be a good fit for either party.
Unless a new hire has significant experience, employers often start them below salary-range midpoints. An initial job offer closer to the midpoint is more attractive than one situated down in the first quartile. These days, good employees are in high demand and are knowledgeable enough to research salary ranges and midpoints. To calculate a midpoint, add the salary range minimum and maximum together and divide it in half.
Savvy employers put a lot of thought into determining their compensation structures, and establishing the midpoint early on is essential. Companies can choose to lead, lag behind or match the market when paying their workers. Those that lead may have an advantage when it comes to attracting talent. It is also vital for employers to review job descriptions before posting them, according to Paycor, and have current employees update the descriptions periodically.
After employers set their job descriptions, they should rank each role in the order of responsibility and value. Each of the elements of a role that is important to the business can be ranked with a point system; the more points a job description has, the higher the salary might be. Some companies have pay grades for certain kinds of positions and salary ranges within those grades. Also, keep in mind that salaries fluctuate, so companies need to stay on top of market trends. The range for a position could increase or decrease in a matter of months, and dissatisfied employees may decide to look for better-paying jobs when their companies lag behind.
Money. It’s one of the main considerations for people when it comes to accepting, staying or moving into a job, yet it’s also one of the most difficult things to talk about. The hardest thing is knowing where to pitch yourself, go too low and you could be underselling yourself; pitch too high and you could be overlooked. When it comes to your salary range, there are so many factors that can impact how much money you should be asking for. How long you’ve worked in the industry, your qualifications, your achievements, where you live, the demand for your skills, the company hiring and industry trends can all play a part. To help help you get a feel for what roles typically pay, we took a look at the average salaries for jobs advertised on SEEK. Enter a role below to start exploring.
Dear Liz, I'm job-hunting and it's going pretty well. I have one problem. I always wonder how and when to ask "What does this job pay?" I have been to at least three interviews that were a complete waste of time. I didn't know the salary range until the end of the interview or even later. Once I found out the salary range was too low for me, I had already wasted a lot of time and energy. In one case I asked three different people — the recruiter who called me, the internal HR person at the employer and my own hiring manager — what the starting salary was. None of them told me. They said "We work that out once we know who the perfect candidate is." That makes no sense. How could they choose the perfect candidate without knowing what that person would need to earn in order to take the job? When is the right time and what are the steps to asking "What is the starting salary for this position?" Thanks, Mara Dear Mara, In a perfect world every job ad would include a starting salary range. That is simple and logical. Why don't more companies include the salary range in their job ads? It's because they are trying to save money. If they published the salary range it would tell the job-seeking public how much money they have to spend. Many job-seekers are fearful. They are modest in their salary requirements because they don't want to get dropped from a recruiting pipeline. If an organization has a budget of $60,000-$70,000 to pay a new person but a great candidate walks in and says "I need to earn $57,000 in my new job" the organization will be happy to offer that person $57,000. There is no business reason for an employer to withhold the starting salary range for a job opening. It would be more efficient and save everybody time if every job ad included a salary range. However that is not the case. You have to ask about the salary range or you might find yourself waiting for the job offer to find out what you're going to get paid! You can ask "What is the salary range for this position?" when a recruiter first contacts you about a position. If you are dealing with a third-party recruiter, the salary issue will be raised. A third-party recruiter would never send you to the interview without first confirming that your target salary range and the employer's salary range intersect. Many internal recruiters and HR folks will do just the opposite. They will invite you for an interview without telling you what their salary range is. They will ask you what you earn now or what you were earning at your last job, instead. The practice of asking for a job-seeker's salary history is becoming illegal in more and more places. New Jersey is the latest state to consider banning employers from asking a candidate for their salary history. Even if it is legal for employers in your area to ask for your salary history, you don't have to share that information, and I recommend that you do not. Clearly the tide is turning. Legislatures believe that it is unfair for employers to have a candidate's confidential salary details. Given the trend toward protecting a job candidate's salary-history privacy, can any ethical organization continue to demand a candidate's pay history? To do so sends a loud message that the organization doesn't care about candidates' privacy. When a recruiter asks you "What are you earning now?" you can say "I'm focusing on jobs that pay at least $50K." Make your conversation about your job search, not your current compensation. If the recruiter insists that you hand over your personal financial details, tell the recruiter to get lost and partner with a different recruiter. If you haven't determined the pay level for a job you're interested in by your first interview, you can ask the question "What does this job pay?" during the interview, like this: Interviewer: So Mara, do you have any questions for me? You: Yes, I have a few. First off, just to make sure we are making good use of everyone's time, what is the salary range for this position? Interviewer: How much are you earning now? You: I'm focusing on opportunities between $50,000 and $60,000. You: That will work for this position. End of Script The interviewer's answer may not be highly satisfying but at least it will tell you that you're not wasting your time. Do not go to a second interview unless you know that you and the employer are in sync with respect to compensation. Some interviewers may frown or bristle when you ask them about salary. That's good learning for them! More and more job-seekers are finding their backbones and remembering that no company can stay in business, much less thrive and grow, without great employees on board. Companies that cannot handle a job applicant with normal self-esteem and a normal level of curiosity about their future income do not deserve your talents! All the best, Liz |