By Kimihiro Ogusu, SHRM-SCP · October 7, 2026 · 5 min read
A candidate sees a job advertised with a salary range. An existing employee sees the same posting. Both may ask: “How does someone get from the bottom to the top?”
Publishing the range does not answer that question. You need to explain what the range represents and how your company makes decisions within it.
Separate a hiring range from a full role range.
A hiring range can describe what the employer expects to offer for a particular vacancy. A full salary range can describe the pay framework used for people performing the role over time. Depending on your design, those may be different ranges.
Explain the distinction clearly. A candidate should not assume that the advertised maximum is a promised future salary. A current employee should not have to infer their career pay opportunity from a recruitment posting.
Legal posting requirements vary by jurisdiction. For example, New York State guidance addresses a good-faith range for advertised opportunities. A posting requirement itself does not establish a company’s long-term progression policy.
Define movement within the role.
Decide how capability, sustained performance, range position and the available budget influence increases. Clarify the difference between a market adjustment, a merit increase and a promotion.
These decisions may interact, but they serve different purposes. A market adjustment responds to external alignment. A merit increase recognizes performance under the company’s approach. A promotion reflects a meaningful change in role or responsibility.
Plan for the maximum.
Reaching the maximum does not automatically mean a promotion, and tenure does not necessarily entitle someone to reach it. The company needs a policy for situations where pay is at or above the current range.
- Is the range still appropriate for the role and market?
- Has the employee’s role grown enough to warrant a different level?
- Does the company have an appropriate non-base-pay recognition option?
- How will the decision be explained and reviewed?
Choose an approach you can apply consistently. Avoid creating a one-off promise that you cannot extend to comparable situations.
Give managers an explanation they can use.
A useful manager guide describes what the range means, which factors affect placement, how reviews work and what employees can do to develop. It should distinguish a career opportunity from a guaranteed pay outcome.
Start with one role or job family. Test the explanation with actual hiring and increase scenarios. If the answers conflict, improve the policy before distributing a more polished range chart.
Source & scope
New York State Department of Labor: Pay Transparency. Refer to the applicable state and local requirements for each opportunity. This article provides general compensation design guidance, not a legal opinion.