Reasonably wide ranges, at least 15 per cent on either side of the mid-point
salary gives an adequate spread (35% plus) in salaries for the grade (see diagram following),
thereby also providing some flexibility in fitting jobs into a grade where their evaluations or
market rates differ slightly.
| Grade Min. Salary $42,500 | Grade Mid. Salary $50,500 | Grade Max. Salary $57,500 |
| 85% | 100% | 115% |
The $57,500 grade maximum salary is 35% above the $42,500 minimum.
Such 'broad-banded' structures (with salary range width of 35% or more) emphasise the
performance of the individual within the grade, while narrow-banded structures place more
emphasis on the job level and promotion. Structurally, both broad-banded and narrow-banded
structures may provide the same outcome, however the controls required preventing grade drift in a
narrow-banded structure may cause some inflexibility.
Research has shown the average band width to be 43% with a wide variation in responses. Other
research has shown band width varying with job category: 15-20% at clerical levels, 25-40% for
middle management, and 40-60% at senior levels.
Wider ranges for senior jobs acknowledge that at those levels individual merit assumes greater
importance. The scope for improving performance in routine jobs is limited and there is no need
to have wide bands, there outstanding performers can be catered for through promotions.
Salary ranges between successive grades can overlap, but not be so broad as to overlap with a
grade two removed.
Applying a range of plus or minus 15% (giving a salary range of 35% for a grade) to Table 1.3.1
gives:
Copyright 2004 National Remuneration Centre, Melbourne.
