High min-max range to allow a person grow within a level
Having a broad range of compensation at all levels provides the vital ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã¢â‚¬Å“running trackÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€šÃ‚Â for the employee. It provides opportunity of growth in the near future for the employee and can be the driver for high performance in the short term.
This implies that the range of compensation at a certain level should be kept broad enough so that the employee has enough room within that level to strive for. This provides for an immediate ground for the employee for growth and an immediately apparent growth path. Depending upon the individual profile of the employee, HR can place the candidate as low as possible in this range so that he/she has enough ground to cover in the near future. Having this range also helps in framing the learning & development goals for the employee. It also allows the possibility of differentiating between the employees with high performance and the others. Strategically, this policy also serves as a motivator to average and below average performing employees as they see their high-performing colleagues get increments and a higher chance for promotion and they are motivated to do the same too.