What is a compensation range?

Compensation ranges are normally used in the interview process or the job offer phase of contact between an employer and a job candidate. Compensation ranges benefit job candidates and employers because they can be used as a negotiating tool by both parties. Employers also use this method to determine how much value a candidate thinks they have.

Here are some factors that can affect compensation ranges for job candidates:

• How long the job candidate has worked within their specific field or industry

• How advanced is the job candidate's education is

• If the job candidate has earned any professional certifications relevant to the job opening

• When a company is trying to recruit a specific job candidate and wants to offer this candidate more compensation than what they are receiving at their current job

• If a job candidate has stellar references and/or recommendations from previous employers or other respected professionals within an industry

• The relevant skills and expertise the job candidate has as perceived by the potential employer

• The cost of living in the region in which the job candidate lives and the potential employer operates

• Common pay rates and averages for similar roles to the one the job candidate is being offered