When you’re a jobseeker you’ll generally see employers specify a salary range. If you’re an employer, a salary range is a great way to provide an important salary estimation while still attracting applications from candidates with a range of experience or education.
If you’re an employer it’s important to perform the necessary research before setting a salary range – utilising experience, education and location to establish a realistic and attractive range.
In this article, we look at what a salary range is, why employers should use them and the various applications.
What is a salary range?
A salary range is essentially a guideline on what a worker can expect to earn in a role, highlighting the highest and lowest possible salary for a position.
For example, if the salary range is between £25,000 and £30,000 per year, there’s a general understanding that the agreed salary will be somewhere between these numbers depending on experience, responsibilities and potential for future pay raises.
Employers typically use salary ranges so that they attract a wider range of candidates and, if the candidate is starting at the lower end of the bracket, there’s room for them to grow into.
Why do employers use salary ranges?
Employers typically use salary ranges to support their recruitment process. It’s important to post a salary on a role for a number of reasons – it offers transparency, makes the role more attractive and acts as a first stage of screening. A salary range is a way for an employer to set a guideline on potential salary without committing to a specific number.
Salary ranges also ensure a degree of equality during the hiring process whilst making sure the role aligns with the wider job market. With a salary range in place, employers can minimise potential bias, ensure different positions fit into the company’s salary structure and maximise the appeal of a role.
Employers will utilise a salary range at all stages of the recruitment process – particularly during the initial stages when the job listing goes live or throughout the interview process.
They’re also used when the company is establishing an overall structure, demonstrating how much they can afford to pay a candidate whilst remaining financially viable.
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Why do employers use salary ranges?
Employers typically use salary ranges to support their recruitment process. It’s important to post a salary on a role for a number of reasons – it offers transparency, makes the role more attractive and acts as a first stage of screening.
A salary range is a way for an employer to set a guideline on potential salary without committing to a specific number.
Salary ranges also ensure a degree of equality during the hiring process whilst making sure the role aligns with the wider job market. With a salary range in place, employers can minimise potential bias, ensure different positions fit into the company’s salary structure and maximise the appeal of a role.
Employers will utilise a salary range at all stages of the recruitment process – particularly during the initial stages when the job listing goes live or throughout the interview process.
They’re also used when the company is establishing an overall structure, demonstrating how much they can afford to pay a candidate whilst remaining financially viable.
How do employers establish their salary ranges?
So how does an employer typically establish a salary range for a role? Salary ranges generally take into account a number of factors including:
• Current rates for the role in the job market
• How much experience is required in the role
• The qualifications that the role requires
• How competitive the role is
• The additional benefits that the role includes
• Regulatory guidelines for minimum salaries – such as trade union requirements
• The cost of additional training or equipment that may be necessary
• Local living costs
Setting salary ranges typically requires an employer to undertake market research beforehand, especially if they’re measuring local market salaries and cost of living. An easy way of establishing this research is by utilising a salary guide, which often provides these insights from a multitude of sources.
When would a candidate use a salary range?
Salary ranges aren’t just useful for employers, candidates can use them to their advantage too.
If you’re applying for a role and you’re unsure of what your salary expectations are, market research around salary ranges allows you to set your expectations based on your experience and career progression.
During the application process, an employer may ask you about your salary expectations. If you already understand what the role is generally worth, you’re in a much better position to answer this question, demonstrate your understanding of the job market and potentially negotiate for the higher end of the salary range.
This is particularly useful if you’re entering a new career path or pushing for a promotion and want to establish what your salary could be.
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How to establish your market value based on a salary range
If you’re a candidate and you’re looking to apply for a role with a salary range, here’s some things they may take into account and how you can negotiate a higher overall salary:
Evaluate your career development
The most important step is establishing your skill set and how that translates into market value. Take the time to understand the skills you have compared to the skills the role requires.
If you have all of the listed skills and plenty of experience in the sector, for example, you’re in a much better position to negotiate for the higher end of a given salary range.
Not only does this give you a clear indicator of where to start but you’ll also be more confident when it comes to actually arguing your case during the application process.
Be confident when negotiating a salary
At some point during the interview process, an employer will generally ask you about your salary expectations. If you’re looking to push for the higher end of the range, you’ll need to provide your reasoning as confidently as possible.
The key is to make your pitch at a number as high as you’re comfortable with, especially as the employer will likely try to negotiate you down. If you’re applying for a role that is £25,000 – £30,000 and you’re looking for £28,000, for example, try starting higher and explaining your reasoning before settling on £28,000.
Consider additional benefits
Another way of improving your take home pay within an established salary range is by identifying any benefits that come with a role. Say you’re looking for a role that is £28,000 but the salary range is only £25,000 – £26,000. It may be that the role offers performance-based bonuses or even benefits such as a company car that effectively bumps your salary to your desired number.