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Use when setting or revising pay bands — covers band structure, market data sources, compa-ratios, and band integrity.
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Based on SOC occupation classification
| name | pay-bands-market-data |
| description | Use when setting or revising pay bands — covers band structure, market data sources, compa-ratios, and band integrity. |
A pay band defines the cash compensation range for a (level × job family × geography) combination. Bands have:
Width: typically 15–30% spread (max is 15–30% above min). Wider widths give flexibility; narrower widths force promotion to grow comp.
Compa-ratio = actual pay ÷ midpoint.
Used for diagnostics:
Aggregate compa-ratios useful for:
| Source | Strengths | Weaknesses |
|---|---|---|
| Pave | Strong tech coverage; modern UX | Submission base skews tech / startups |
| Comprehensive | Broad sector coverage | Setup heavier |
| Radford | Tech enterprise standard; level-mapped | Expensive; dated participant model |
| Option Impact (Compensia) | Equity benchmarks at early stage | Equity-focused |
| Salary.com / Glassdoor | Free / low-cost | Submission bias; unverified |
| Levels.fyi | Public, level-mapped tech data | Submission bias toward high-comp candidates |
| Survey participation | Improves your data quality | Time investment |
When choosing: match the source's submission base to your hiring market. A SaaS startup's data isn't reliable for hardware manufacturing.
compensation-philosophy)Any actual pay outside the band is an exception. Reasons that justify:
Reasons that don't:
Document every exception. Audit quarterly.
Quarterly:
Compression: when new hires get paid as much or more than longer-tenured existing employees at the same level. Common during hot markets; corrodes trust. Address via market refresh of existing employees, not by underpaying new hires.
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