Pay Structure
Range spread
Also called: range width, spread, salary range spread
The percentage difference between a pay range's minimum and maximum.
Range spread (sometimes called range width) measures how wide a pay range is. It's calculated as (maximum − minimum) ÷ minimum, expressed as a percentage.
Typical spreads vary by job level:
- Non-exempt / hourly roles: 25–40% spread
- Professional / individual contributor roles: 40–50% spread
- Management / professional roles: 50% spread
- Senior leadership / executive roles: 60–70% or wider
Wider spreads give organizations more room to differentiate pay based on performance, tenure, and proficiency without forcing constant range adjustments. Narrower spreads keep pay tightly anchored to market but require more frequent structure updates.
New Jersey's pay transparency law caps posted ranges at 60% spread, so multi-state employers often default to that as their effective ceiling.
Example
A range of $80,000–$120,000 has a spread of (120,000 − 80,000) ÷ 80,000 = 50%.