Set salary bands so a hiring manager knows the fixed pay they can offer before the first interview. Group roles by level and job family, look at offers you have won and lost, and write a minimum, a midpoint and a maximum for fixed pay. Negotiating from scratch on every candidate is how internal pay becomes unfair and slow.
Group roles that do similar work
A band is for a level of scope, not for a favourite candidate. Define what an entry, mid and senior person can do unsupervised in that family. Titles can differ. The scope should not.
- Write three to five levels. More than that and nobody remembers them.
- Keep engineering, sales and support in separate families.
- Note which cities, if any, have a different band and why.
Anchor the band on fixed pay
Variable pay, stock and bonuses sit beside the band. They should not be used to pretend a below-band fixed salary is competitive. Record the fixed range you will actually get approved.
- Set a floor you will not go under for that level.
- Set a ceiling that needs a higher level, not a special exception.
- Decide who can approve an exception and what evidence they need.
Use the band in the hiring conversation
Tell recruiters the range. Share it with candidates when you can. Offers inside the band, for people who meet the level, close faster and are easier to explain to the team later.
- Review bands when you lose several offers for pay, or when new hires sit far above current staff.
- Fix internal gaps before you keep hiring above the team.
- Write the agreed fixed number into the letter. Do not leave it as "as discussed".
Level, fixed-pay range, an owner for exceptions. Hire inside the band.
Questions people ask
How do we set a band if we have never hired the role?
- Use public ranges as a hypothesis, talk to two people who do the job, and tighten the band after the first few offers. Label it as new so exceptions are expected.
Should bands differ by city?
- Only when the market and the cost of living truly differ and you can administer it. A secret city discount that staff discover later is worse than one national band.
What if a candidate is above the band?
- Either they are a higher level, or you cannot hire them at the pay they need. Do not invent a title to hide an out-of-band deal.
Related reading
Nisha Rao
Nisha writes hiring playbooks for founders and talent teams in India, covering job descriptions, interviews, offers and campus hiring.
