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Include a Salary Range in Your Job Descriptions

by Leading Edge

Defining the role is an important step in talent acquisition, and setting the compensation range is a vital part of this step.

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The compensation range for each role needs to match your budget and bear some relationship to the market rate for the desired skill set and responsibilities. But it is also important to avoid making salary decisions for each role in isolation from the others. Clarity and transparency about compensation across an organization can help to prevent salary inequity, alleviate employee jealousy or feelings that pay is arbitrary, and boost job satisfaction. Research by Leading Edge, PayScale, and others has shown that transparency around compensation philosophy can have a profound impact on employee engagement, as well as advancing equity and attracting more of the right applicants.

“When salary bands are shared openly, employees will have a better sense of where their role stands in relation to those above or below them, leading to fewer assumptions and less jealousy.” — A Guide for Building Equitable Salary Bands, Leading Edge

One way to achieve this is by implementing salary bands across your organization. Salary bands are ranges of pay amounts used to provide structure for salary decisions and salary conversations. Salary bands promote equity and encourage fairness by providing a clear maximum and minimum for each role in an organization.

Learn more in our resource, A Guide to Recruiting and Hiring

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