Salary Range

The minimum-to-maximum pay band a company uses for a given role.

A salary range defines the lowest and highest pay a company is willing to offer for a specific position. It is typically anchored by market data (what comparable roles pay at comparable companies), internal equity (how it fits relative to other roles and tenure levels), and budget constraints. Ranges are expressed as annual figures — '$80,000–$110,000' — and often correspond to a compensation band in the company's broader pay structure.

The spread of a salary range is intentional and meaningful. Entry-level roles often have narrower bands (20–30%) because the expected performance variance is small. Senior roles and leadership positions tend to have wider bands (40–60% or more) because the difference in output between a new senior and a tenured one is significant. Where you land within the range depends on your years of experience in that specific role, your performance in the interview, and your leverage (competing offers, internal referrals, in-demand skills).

Pay transparency laws in states like Colorado, New York, California, and Washington now require employers to post salary ranges on job listings. This has shifted negotiating dynamics: candidates come in with better information, and employers can no longer deflect range questions with 'it depends on experience.' If a posted range spans $60,000–$120,000 — a 100% spread — treat it skeptically; overly wide bands often mean the company hasn't done the hard work of defining the role clearly.

Range Spread and What It Signals

  • Tight range (15–25%): Role is well-defined, market rate is well-established, little room for negotiation.
  • Moderate range (30–50%): Normal; accounts for experience and performance differences between candidates.
  • Wide range (60–100%+): May indicate role flexibility (junior or senior hire welcome) or sloppy compensation planning.
  • If you're offered the top of a range: there may be limited room for future raises until the band is regraded.
  • If you're offered the bottom of a range: ask what milestones move you toward the midpoint and over what timeline.

How to Use Posted Ranges Strategically

When a salary range is posted, anchor toward the upper half — not the midpoint. Research confirms most people undershoot posted ranges when they negotiate. If your skills and experience are competitive for the role, ask for the 65th–80th percentile of the range. Saying 'Based on my experience with X and Y, I'm targeting the $95,000–$100,000 end of the range' is specific, grounded, and professional. You're not asking for more than the company has already said it's willing to pay.

Example

A job posting for a Senior Product Manager at a mid-size SaaS company lists a salary range of $130,000–$165,000. The candidate has 7 years of PM experience and a competing offer at $150,000. She anchors her negotiation at $160,000, citing her competing offer and the domain expertise she brings. The company counters at $155,000. She accepts, landing in the 76th percentile of their stated range rather than at the midpoint of $147,500 where she might have defaulted.