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How a pay range gets set, and why the posted one is so wide

The posted range is the whole working life of the job, not a negotiating span. Where an offer lands inside it is mostly decided before your name comes up.

A printed job posting on a break room table with a pen resting on the pay line

A posted range is not a negotiating span. It is the whole working life of the job: the floor for somebody hired with the bare qualifications, and the ceiling for somebody who has held the seat for years and is not going to be promoted out of it. A range that looks absurdly wide usually means a carefully built band, not a coy employer.

Which is why pushing for the top of a posted range so rarely works. The people paid up there are not better negotiators. They are, nearly always, people who have been there a long time.

Where the band comes from

Jobs get sorted into levels by scope and responsibility, and each level gets a range with three points: minimum, midpoint, maximum. The midpoint describes what a fully trained, fully competent person in that role is worth in that labor market.

Hourly roles run through the same machinery, usually with narrower bands and more of them: a grade for each step of a production ladder, a differential for nights, a premium once a certification is on file.

Bands get refreshed on a cycle, commonly once a year and sometimes every other year. Between refreshes the market moves and the band does not, which explains most of what feels arbitrary about an offer.

The midpoint is the number that matters

Compensation teams talk about where a person sits against the midpoint, not in the range. Divide pay by the midpoint and you have the ratio they watch.

New hires are usually placed below the midpoint, on the reasoning that they are not yet doing the job at full speed. Someone at or above the midpoint is being described, internally, as fully seasoned. So the useful question is never how close to the top an offer sits, but how far below the midpoint, and what closes the gap.

Why the top is almost never offered

Hire someone at the maximum and you have created a person with nowhere to go. Every ordinary increase for years has to come out of a band they already stand at the end of.

That is a problem the hiring manager inherits, and it is the quiet reason an offer stalls partway up a range that technically goes higher.

Compression, and the person who has been there four years

Band floors rise faster than internal raises do. The result is compression: a new hire arriving near, or above, what a competent four-year employee makes for the same work.

A manager who knows what the team earns is managing that risk inside your offer, weighing one hire against a conversation they will have to have with three other people afterward. It is the most common invisible ceiling on an offer, and nobody says it out loud.

Two numbers, not one

An offer only means something next to the midpoint and next to the review date. A number below the midpoint with a band refresh three months out is a different offer from the same number in a band nobody has touched in two years.

What a recruiter can move, and what they cannot

A recruiter can usually move placement inside the band, the start date, a sign-on amount, shift assignment, differential eligibility, and sometimes the level itself if you were misleveled during screening.

A recruiter cannot move the band, the midpoint, another department's band, or a scale set by a union contract.

Four questions that locate the offer in the band

Send these in one message before you respond to any number. They are ordinary questions and a recruiter who deals in bands all day will recognize them as such.

  1. "Is the posted range the full band for this grade, or the hiring range inside it?" Many employers post the whole band and hire only in the lower portion. If a narrower hiring range exists, that is the real range and everything above it is decoration.
  2. "Where does this offer sit relative to the midpoint?" Some will not answer, which is informative on its own. Anyone who does has told you how much room is left.
  3. "When was this band last reviewed, and when is the next review?" A band refreshed last quarter has little give. One untouched for two years may have an adjustment coming, and you can ask in writing to be included in it.
  4. "What moves someone from this placement to the next step, and how long does that usually take?" Time in seat, a certification, a level change. You are asking them to describe the path while it is still cheap for them to describe it.
The band was drawn before your name came up and will be redrawn after you leave. The only thing on the table is where inside it you land, and when it next gets reviewed.

The employers with no band at all

Everything above describes private-sector US employers that run formal bands. Plenty do not. At a small employer there is often no band, only what the owner paid the last person, and the useful question is what that was.

Under a union contract or a public-sector schedule there is nothing to negotiate inside either. Pay is a published step, and the leverage is in classification, step progression and your representative.

Some states and cities require a range in the posting or on request, and a few require a pay scale at a set point in the process. What is required differs by state and by city, so check where the job is based, and take an entitlement you intend to act on to the agency that enforces the posting rule there.

General information about work in the United States, not legal, tax, immigration, medical or financial advice. Pay, hours, leave and licensing rules differ by state, by city and by contract, and change over time. Check anything here against your own documents and, for anything you would act on, take advice from a qualified professional in your state. Get in touch with any questions about this post.

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