Definition of a Rate Range.
A rate range refers to the salary spread for jobs assigned to the same salary grade. Jobs are assigned to salary grades based on the level of responsibility, skill, and difficulty so that similar jobs are grouped together. Salary survey data for benchmark jobs within each grade is used to establish the midpoint of the rate range for that salary grade. The midpoint is the rate at which an employee who is fully qualified and performing the job at an acceptable level would be paid. The rate range for a salary grade consists of a minimum, midpoint, and maximum rate of pay.
Why is a Rate Range Important?
Rate ranges are important for several reasons. First, by grouping similar jobs together in a salary grade, an employer can insure that there is internal equity in its pay structure (e.g., jobs with similar difficulty and responsibility are paid the same). Second, employers can insure that rate ranges reflect salaries that are competitive in the market by checking benchmark jobs in each salary grade against survey data. Even though the various jobs within a particular grade may seem very different, the skills required to perform them have important similarities, giving them roughly the same value in the labor market.
Employers may adjust rate ranges at various intervals when market data indicates they are not consistent with the market rate for the jobs within the job grade structure. This adjustment may either increase or decrease the rate range. It’s important for employers to know the market rate for the jobs within their organization so they can remain competitive within their job market.
BLR’s Rate Ranges
We established rate ranges for three classes of jobs:
- Manufacturing and service jobs
- Office, clerical, and technical jobs
- Executive, administrative, and professional jobs
BLR® calculates the midpoint for each rate range based on our salary survey data. The minimum and maximum of a salary range are calculated as a percentage of the midpoint for the grade. BLR’s rate ranges can be used to establish compensation levels for any job in any organization.
Compensation.BLR.com® updates rate ranges to reflect significant fluctuations in the economy and/or salary market. Our compensation professionals analyze the grades and rate ranges for accuracy and relation to market trends. A systematic study is conducted on all job grades and realignment to ranges is made to reflect market conditions. BLR rate ranges are pay structure recommendations that we encourage employers to compare to their existing system and use in conjunction with knowledge of their employment market to make any adjustments.
If you have questions or need additional information, contact Customer Service:
Monday through Friday, 8:00 a.m. to 5:00 p.m. (Eastern)
Disclaimer—The information provided here is intended to help our customers establish rate ranges that they can use and/or modify. This site and the information available through it do not, and are not intended to, constitute legal or other professional advice. Although we go to great lengths to make sure our rate range information is accurate and useful, we recommend you consult an appropriate professional for assurance that our information, and your interpretation of it, is appropriate to your particular situation.