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Set your upper salary limit by what a particular job is worth to you. Know the market to determine the least you'll pay. Match jobs whose value comes with hours to hourly pay. Match jobs whose value comes in insight or skill to salaried pay.
Subtract the minimum from the maximum. This is the range. In the example, 500,000 minus 350,000 equals 150,000. Divide the range by the minimum to find the range spread.
A traditional salary range is commonly 30 percent to 40 percent. It is common that top salary grades (i.e., for executives and top management) have a wider range (sometimes greater than a range of 40 percent) and that the lowest salary grades often have the narrowest range (sometimes smaller than 30 percent).
Range spread is a basic statistical calculation that goes along with mean, median, mode and range. The range is the difference between the highest and lowest scores in a data set and is the simplest measure of spread. So, we calculate range as the maximum value minus the minimum value.
A good rule of thumb is to keep the lower end of your range at least 10 percent above your current salary, or the number you determine is a reasonable salary for the position. For example, if you currently earn $50,000, you may say that your range is $55,000 to $65,000.
To find the minimum, divide the market rate by 1.00 + ½ of the range spread. To find the maximum, multiply the minimum times 1 plus the range spread. This creates a salary range that has a minimum of $108,000, a mid-point of $135,500, and a maximum of $162,000.
Subtract the minimum from the maximum. This is the range. In the example, 500,000 minus 350,000 equals 150,000. Divide the range by the minimum to find the range spread.
A good rule of thumb is to keep the lower end of your range at least 10 percent above your current salary, or the number you determine is a reasonable salary for the position. For example, if you currently earn $50,000, you may say that your range is $55,000 to $65,000.
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