Home
Back
Salary Range Penetration Formula:
| From: | To: |
Salary range penetration measures where an employee's salary falls within their pay range, expressed as a percentage. It helps organizations analyze compensation equity and make informed salary adjustment decisions.
The calculator uses the salary range penetration formula:
Where:
Explanation: The formula calculates how far an employee's salary has progressed through their pay range, with 0% at the minimum and 100% at the maximum.
Details: Salary range penetration analysis helps organizations ensure fair compensation, identify pay compression issues, guide merit increases, and maintain competitive pay structures aligned with market data.
Tips: Enter the employee's current salary, the minimum of their salary range, and the maximum of their salary range. All values must be in the same currency and valid (salary ≥ 0, range min ≥ 0, range max > range min).
Q1: What does a 50% penetration mean?
A: A 50% penetration indicates the employee's salary is exactly at the midpoint of their salary range.
Q2: What is considered a good penetration percentage?
A: Typically, 80-120% of range midpoint is considered appropriate, but this varies by organization and position level.
Q3: How often should penetration analysis be conducted?
A: Most organizations conduct penetration analysis annually during compensation reviews or when making salary adjustment decisions.
Q4: Can penetration exceed 100%?
A: Yes, penetration can exceed 100% when an employee's salary is above the maximum of their range, which may indicate a need for range adjustment or promotion consideration.
Q5: How does this differ from compa-ratio?
A: While both measure salary position, compa-ratio compares salary to range midpoint, while penetration measures position within the entire range.