What is a pay range?
Updated · By Robert Breen
A pay range is the span, from a minimum to a maximum hourly rate or salary, that a business plans to pay for a specific role. Many employers post it in the job listing. It gives candidates and hiring managers a shared starting point and keeps pay for the same job consistent.
Why it matters for a small business
Without a range, pay gets decided candidate by candidate, often by whoever negotiates hardest. That leads to unequal pay for the same work and awkward surprises when coworkers compare notes. A range decided before the first interview gives the hiring manager a clear limit and a reason behind it.
Some places require employers to include pay ranges in job postings or share them on request, and the rules differ by state and city. This page is general information, not legal or HR advice. Have HR or an employment attorney review your postings and pay decisions for the places you hire.
In a real lesson: Turn an Interview Debrief into a Scorecard and a Candidate Follow-Up (Recruiting & HR)
In the Interview Debrief to Scorecard lesson, the made-up Willow Bend Physical Therapy has posted a range for its Front Desk Lead role. Near the end of the debrief, interviewer Marcus Reed mentions that the candidate "is looking for about two dollars an hour over our posted range."
HR manager Hannah Cole doesn't settle it in the meeting: "Let's not decide that here. I'll ask Dr. Patel on Thursday if there's room." ChatGPT's summary records it the same way, as an action item for Hannah to ask Dr. Patel by Thursday and as an open question about whether there is room above the posted range.
Then the request for the candidate email says to leave out "the pay question." Until the owner decides, nothing about pay goes to the candidate, which avoids a promise the practice may not be able to keep.
Try this lesson free or read the step-by-step guide.
Common confusions
Pay range vs offer
The range is the band for the role. The offer is the specific number for one person, set within the range based on experience and your pay policy.
Pay range vs total compensation
Pay is the wage or salary. Total compensation adds benefits, bonuses and paid time off. Be clear which one you are posting.
Tips
- Set the range before you post the job, and write down how you decide where in the range to offer.
- Route requests above the range to one decision-maker, as the lesson does with Dr. Patel.
- Keep pay talk out of AI-drafted candidate emails until it is decided.
Related terms
Where you use it: free lessons
- Turn an Interview Debrief into a Scorecard and a Candidate Follow-Up (Recruiting & HR) (ChatGPT, 9 min)
Frequently asked questions
- Do I have to include a pay range in my job post?
- It depends on where you and the job are located. Some places require it. Check with HR or an employment attorney for the places you hire.
- What if a strong candidate wants more than the range?
- Decide whether the role, not the person, justifies a change. If you go above it, document why so pay stays consistent across the team.