February 12, 2014 – Q & A

Q. How do employers construct salary ranges?

A. Once an employer decides to construct salary ranges, there must be a job hierarchy demonstrating the relative worth of each job. This can be done by reviewing internal equity or by external market pricing. Once the hierarchy is established, jobs of similar skill and responsibility are then grouped into salary grades. Information for salaries is often derived from compensation surveys, and as a member of MSEC, you have access to our surveys.