{"id":128098,"date":"2022-11-23T08:57:31","date_gmt":"2022-11-23T08:57:31","guid":{"rendered":"https:\/\/www.aihr.com\/?post_type=hr-glossary&#038;p=128098"},"modified":"2023-10-19T12:37:24","modified_gmt":"2023-10-19T12:37:24","slug":"range-maximum","status":"publish","type":"hr-glossary","link":"https:\/\/www.aihr.com\/hr-glossary\/range-maximum\/","title":{"rendered":"Range Maximum"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-what-is-range-maximum-in-compensation\">What is range maximum in compensation?<\/h2>\n\n\n\n<p>Range maximum is the highest rate you are willing to pay for a role. The range maximum can be reflected as a fixed amount or as a ratio between the range minimum and range maximum.&nbsp;<\/p>\n\n\n\n<p>There are various reasons an employee could be paid at the maximum of the range:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The employee is classified as HiPo (<a href=\"https:\/\/www.aihr.com\/blog\/high-potential-employees\/\">High Potential<\/a>) and displays behaviors and skills required to rise into critical positions. This generally constitutes only 5% of a company.<\/li>\n\n\n\n<li>The employee has spent a long time at the company and is seen as a highly valuable asset. Losing the employee will result in detrimental business outcomes.<\/li>\n<\/ul>\n\n\n<div class=\"gaihrpl gaihrpl-29\"><div class=\"gaihrpl-single aaihrpl-147\"><a class=\"gofollow\" data-track=\"MTQ3LDI5LDYwMA==\" href=\"https:\/\/www.aihr.com\/courses\/compensation-benefits-certification\/?il_id=banner&#038;il_name=cbcp&#038;il_creative=cbcp-modules&#038;il_position=slot2\" target=\"_blank\" rel=\"nofollow\" style=\"display:block;padding-top:20px;\"><img decoding=\"async\" src=\"https:\/\/www.aihr.com\/wp-content\/plugs\/podcast-blog-ads-fade.jpg\" srcset=\"https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Modules.png 360w, https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Modules.png 360w, https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Modules.png 700w, https:\/\/www.aihr.com\/wp-content\/plugs\/ w\" sizes=\"(max-width: 480px) 360px, (max-width: 960px) 360px, (max-width: 1280px) 700px, 750px\" style=\"box-shadow: 0px 0px 20px 5px rgb(46 61 73 \/ 15%);display: block;margin: auto; border-radius:19px;\" class=\"small_ad\" \/><\/a>\r\n<br><\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-establish-range-maximum\">How to establish range maximum<\/h2>\n\n\n\n<p>There are various ways to determine the maximum range for a position. For example, many salary surveys by companies such as PayScale, Michael Page, and Glassdoor reflect the minimum, mid-point, and maximum for various roles and industries.<\/p>\n\n\n\n<p>Once you&#8217;ve put a job in a certain <a href=\"https:\/\/www.aihr.com\/blog\/how-to-create-salary-ranges\/\">salary range<\/a> based on your findings, you can decide if the job level should be bumped up and possibly get a higher ceiling than at first glance.<\/p>\n\n\n\n<p>You can also calculate your maximum pay based on the range spread.&nbsp;<\/p>\n\n\n\n<p>Findings by the <a href=\"https:\/\/www.erieri.com\/blog\/post\/common-compensation-terms-formulas\" target=\"_blank\" rel=\"noreferrer noopener\">Economic Research Institute<\/a> use the following spreads for these industries\/jobs:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Administration \/Operations: 40% +<\/li>\n\n\n\n<li>Professional\/Management: 50% +<\/li>\n\n\n\n<li>Executives: 50-65% +<\/li>\n<\/ul>\n\n\n\n<p>The key is to be consistent in your implementation so that the range maximum can be accurately calculated.&nbsp;<\/p>\n\n\n\n<p>For example, imagine a Professional\/Management role with a range spread of 50%. Let\u2019s say the midpoint is $70,000. To find the maximum, use the minimum and multiply it by 1.00 + \u00bd.&nbsp;<\/p>\n\n\n\n<p>Following this calculation, the range maximum would be $84,000.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.aihr.com\/wp-content\/uploads\/Salary-Range-Maximum-Example-Calculation.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"680\" src=\"https:\/\/www.aihr.com\/wp-content\/uploads\/Salary-Range-Maximum-Example-Calculation.png\" alt=\"Salary Range Maximum Example Calculation\" class=\"wp-image-128101\" srcset=\"https:\/\/www.aihr.com\/wp-content\/uploads\/Salary-Range-Maximum-Example-Calculation.png 1024w, https:\/\/www.aihr.com\/wp-content\/uploads\/Salary-Range-Maximum-Example-Calculation-300x199.png 300w, https:\/\/www.aihr.com\/wp-content\/uploads\/Salary-Range-Maximum-Example-Calculation-768x510.png 768w, https:\/\/www.aihr.com\/wp-content\/uploads\/Salary-Range-Maximum-Example-Calculation-510x339.png 510w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>This formula can be used to establish the range maximum and minimum whenever there is accurate market data available based on the mid-point of a salary.<\/p>\n","protected":false},"parent":0,"menu_order":0,"template":"","hr_glossary_category":[575],"class_list":["post-128098","hr-glossary","type-hr-glossary","status-publish","hentry","hr_glossary_category-compensation-benefits","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is Range Maximum in Compensation? 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