Adding Salary Ranges To Internal Job Postings

HR Magazine, August, 2000 by Patricia A. Rouzer

Anticipate Questions, Competition

A company that has not included salary ranges in its internal job postings should not simply begin posting them without making sure employees and management are ready. Posting ranges without preparing the work-force for the change risks creating confusion and possibly resentment among employees.

HR professionals working for companies that have not traditionally posted salary ranges can expect questions from employees when those figures begin showing up in job descriptions. Be ready for questions such as, "You posted a job that looks a lot like mine but has a higher salary range." To answer that, Kager notes, the HR professional must be able to explain the compensation system, including the regional and local salary data used to create pay ranges and the impact of experience and performance on salary.

Employees also may ask HR how to prepare themselves to move into the jobs they see posted. "Those are the employees who are committed to staying and are looking for opportunities to improve their job skills and their chances for advancement within the company," Kager says. HR should be ready with career development help.

Omura adds that HR should be ready for another possible result of posting salary ranges: competition--not just among employees competing for a job but also among managers vying to attract candidates. Knowledge of the pay in other departments may prompt some managers to inflate the pay level of their open positions to attract the best internal applicants.

This kind of competition is something that good compensation management can fix, Omura says. "If a sound salary structure exists, management can assure that each position is assigned its proper level and compensation package."

More than Numbers

Salary is not the single determining factor for employees considering a job change inside or outside the company, say these HR professionals. Applicants look at an entire compensation package, including flexible hours, day care, vacation time, even programs allowing them to bring their pets to work, Omura says.

"No company should want employees who are only in it for the money," says Omura. "Those types of people are always for sale to the highest bidder. So, when you post a job with a salary range or grade, remember that it is an important benchmark--but not the only important benchmark."

Patricia A. Rouzer is a freelance business writer based in Westminster, Md.