Determining Salary Range


Responsibilities and salary are always related. Once you have drawn up a list of job duties and responsibilities and have written a job description, determining a corresponding salary range should be easy.

Roughly speaking, all jobs can be sorted into three categories:

  1. Nonexempt jobs are those that involve performing prescribed, internal tasks and include little problem solving.
  2. Exempt jobs are those associated with supervising the performance of internal tasks and dealing with problems related to those tasks. These employees do not need to be overpaid overtime for extra hours. A good rule of thumb for determining whether a job is exempt is this: if you miss a day of work and someone else does your work for you during your absence, your job is probably nonexempt. But if you return to work and find your work waiting for you, you’re probably exempt.
  3. Management positions are those involving responsibility for addressing internal and external problems and programs, such as business objectives and challenges.

Avoid the temptation to inflate a job’s title by pasting the management label on a task-based job. People with management skills cost more money in the job market and are harder to hire. Let’s say you decide to speed up your company’s inefficient employee healthcare claims handling process by creating a new position: someone who will collect claim forms and coordinate with your insurance carrier. Don’t lose sight of the fact that you are hiring someone to perform a series of tasks, not to address a management problem. Advertise for a clerk or coordinator, not a manager.

Always establish the correct responsibility level and salary range for every opening you advertise. Doing so will provide consistency throughout your department and maintain internal equity in the structuring and compensation of jobs.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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