Back to compensation management guide

Salary Band Template

A structured template for creating and managing salary ranges across all roles in your organisation, including grade levels, minimums, midpoints, maximums, range spreads, and compa-ratio tracking for pay equity analysis.

Free Download — Complete the form to access your PDF

Structured salary range framework with grade levels, pay ranges, and compa-ratio tracking

100% free. No spam. Unsubscribe any time. GDPR compliant.

100% Free Instant PDF Access No Credit Card GDPR Compliant Expert-Crafted

Introduction to Salary Bands

Salary bands are the backbone of a fair and competitive compensation programme. They define the pay range for each level in your organisation, providing guardrails that ensure consistency across hiring, promotions, and annual merit decisions. Without structured salary bands, organisations are exposed to pay inequity, inconsistent offers, and difficulty defending compensation decisions.

This template helps you design, document, and maintain a complete salary band structure. Whether you are building bands from scratch or refining an existing structure, it covers the essential elements: grade definitions, range calculations, market positioning, role mapping, and ongoing maintenance processes.

Key Template Components

Grade Structure

Define job grades with clear scope, impact, and competency level descriptions for each band

Range Calculations

Set minimums, midpoints, and maximums with appropriate spread and grade-to-grade progression

Role Mapping

Assign every role to the appropriate grade based on job evaluation and market benchmarking

Compa-Ratio Analysis

Track where each employee sits within their band to identify equity issues and inform decisions

Section 1: Grade Level Definitions

Define each grade level with clear criteria. This creates a common framework for slotting all roles into the appropriate band.

GradeLevel TitleScope and ImpactExample Roles
G1Entry / SupportTask-level work under close supervision, limited independent judgement
G2Associate / JuniorApplies foundational skills with some independence, handles routine assignments
G3IntermediateIndependent contributor with solid expertise, handles moderate complexity
G4SeniorDeep expertise, handles high complexity, may mentor others, leads workstreams
G5Lead / StaffTechnical or functional leadership, cross-team influence, strategic contribution
G6Principal / ManagerManages teams or functions, accountable for outcomes, shapes strategy
G7Senior Manager / DirectorMulti-team leadership, organisational-level impact, budget accountability
G8VP / Senior DirectorFunctional or business unit leadership, executive team member
G9SVP / C-LevelEnterprise-wide leadership, board interaction, sets organisational direction

Section 2: Salary Band Ranges

Complete the salary ranges for each grade. Midpoints should reflect your market positioning target. The range spread defines the minimum and maximum as a percentage of the midpoint.

GradeMinimumMidpointMaximumRange Spread %Midpoint Progression %
G1
G2
G3
G4
G5
G6
G7
G8
G9
Calculation Guide: Range Spread = (Maximum - Minimum) / Minimum x 100. Midpoint Progression = (Higher Midpoint - Lower Midpoint) / Lower Midpoint x 100. Typical range spreads: 40% for entry-level, 50% for mid-level, 60%+ for senior/executive. Typical midpoint progression: 10-15% between adjacent grades.

Section 3: Role-to-Band Mapping

Job Family / Function
E.g., Engineering, Sales, Marketing, Finance, HR, Operations
Role Title
The specific role title within this job family
Assigned Grade
The salary band grade this role maps to (e.g., G4)
Market Benchmark Title
The benchmark title used in salary surveys for matching (may differ from internal title)
Market Data Source
Which salary survey(s) were used for this role's market pricing
FLSA / Exemption Status
Exempt or Non-exempt classification (or equivalent in your jurisdiction)

Section 4: Employee Compa-Ratio Tracker

Use this tracker to monitor where each employee sits within their salary band. Flag employees below 0.85 or above 1.15 for review.

EmployeeGradeCurrent SalaryBand MidpointCompa-RatioAction Needed
Compa-Ratio Guide: Below 0.85 = significantly under-market, prioritise adjustment. 0.85-0.95 = developing in role, target for merit increases. 0.95-1.05 = at market, standard merit treatment. 1.05-1.15 = above market, moderate merit increases. Above 1.15 = approaching band maximum, consider promotion path or lump-sum bonuses.

Section 5: Band Maintenance Schedule

Annual Market Data Review Date
Month/date when salary surveys are reviewed and bands are recalibrated against fresh market data
Annual Band Adjustment Effective Date
Date when updated salary bands take effect (typically aligned with merit cycle)
Pay Equity Audit Schedule
When and how often compa-ratios are analysed by gender, ethnicity, and other dimensions for equity
New Role Evaluation Process
Process for evaluating and slotting new roles that are created mid-cycle
Governance and Approval
Who approves band changes? What is the escalation path for exceptions? Who reviews the annual structure?

Benefits of Using This Template

  • Establishes a consistent, defensible pay structure that supports fair compensation decisions
  • Enables pay equity analysis through compa-ratio tracking across demographics
  • Provides clear guardrails for hiring managers making salary offers to new candidates
  • Supports transparent career and compensation conversations between managers and employees
  • Simplifies annual merit and promotion planning with structured band progression
  • Ensures compliance with pay transparency legislation by having documented, shareable ranges
  • Reduces pay compression and inequity that accumulates without structured bands
Best Practice: When building salary bands for the first time, start by benchmarking your most common and most critical roles using at least two reputable salary surveys. Slot those roles into grades first, then use the established midpoints and progression ratios to interpolate bands for remaining roles. This anchors your structure in real market data.

Related Resources

Related Resources

Frequently Asked Questions

Everything you need to know about this resource

Still have questions? Contact our HR experts.

HR by the numbers

3.5%

U.S. employers plan average total salary increases of 3.5% and merit increases of 3.2% for 2027.

Source: Mercer, QuickPulse US Compensation Planning Survey, 2026

  • Email uscontact@performancereviewssoftware.com
  • LinkedIn
  • X / Twitter

Reviews and services

© 2026 PRS Consultancy. Independent HR software reviews and HR guides. Some links to vendors are affiliate links: we may earn a commission if you buy, at no extra cost to you.

  • About
  • Our experts
  • Contact
  • Terms
  • Privacy
  • Back to top