Range Penetration Formula:
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Definition: This calculator determines where a salary falls within a defined pay range, expressed as a percentage.
Purpose: It helps HR professionals, managers, and employees understand compensation positioning within established salary bands.
The calculator uses the formula:
Where:
Explanation: The formula calculates how far the salary has progressed from the minimum to the maximum of the range.
Details: Understanding range penetration helps with compensation analysis, pay equity reviews, and salary adjustment decisions.
Tips: Enter the employee's current salary, the minimum of the salary range, and the maximum of the salary range. All values must be positive numbers with max > min.
Q1: What does a 50% range penetration mean?
A: It means the salary is exactly halfway between the minimum and maximum of the range.
Q2: Can the result be more than 100%?
A: Yes, if the salary exceeds the maximum of the range, the result will be >100%.
Q3: What's considered a good range penetration?
A: Typically 30-70% is considered mid-range, but this varies by organization and position.
Q4: How is this different from compa-ratio?
A: Compa-ratio compares salary to range midpoint, while range penetration shows position across the entire range.
Q5: Should I include bonuses in the salary?
A: Generally no, unless you're calculating range penetration for total compensation including bonuses.