Performance Management & Compensation
- Creating PMTs
- Compensation Administration Handbook
- Performance Management
Rensselaer uses market data to determine salary ranges. Representative benchmark jobs can be readily compared to the market area surveyed and salary ranges are established to reflect the “market rate.” These ranges are adjusted annually in response to changes in the marketplace and the organization’s own budgetary constraints.
A salary range is designed to accommodate a wide range of skills, experiences and performance levels. Each salary range contains many different jobs. For example, Accountant, Grants Administrator, and Purchasing Agent may all have the same grade level because they each have the same relative value as determined by the career ladders and the market analysis. Each level on a career ladder is assigned a unique salary range that is developed and maintained based on the appropriate competitive labor market.
Salary ranges intentionally overlap from one grade to another. Fully qualified incumbents in a lower grade may be at the high end of their salary range, while the salary of a less experienced employee in a higher grade may be near the minimum of the range. It is thus possible that the salary of an experienced incumbent in a lower-rated position will be the same as or more than the salary of an inexperienced incumbent in a higher-rated position.
The range minimum is the lowest pay rate Rensselaer is willing to pay for a position and is typically offered to employees who possess the minimum qualifications and who are expected to perform the basic position duties and responsibilities after normal training.
The range midpoint typically reflects median pay in the competitive labor market and is considered appropriate for experienced and fully qualified employees whose performance fulfills the major requirements of their position.
The range maximum of the range is considered the upper limit of salary opportunity in a level for a highly experienced employee.