Which term describes an employee's pay compared to the total pay range for the same job function?

Which term describes an employee's pay compared to the total pay range for the same job function?

• A. Ranked performance
• B. Reasonable accommodation
• C. Range penetration
• D. Purchase

Answer: (C)

Range penetration describes where an employee’s pay sits within the pay range for the same job function. The pay range has a minimum and a maximum; range penetration is the portion of that range filled by the employee’s current salary. You calculate it by subtracting the minimum from the employee’s pay, then dividing by the total width of the range (maximum minus minimum). For example, if the range is $50,000 to $70,000 and the employee earns $60,000, the penetration is 50% because $60,000 is halfway between the minimum and maximum. This concept helps assess compensation positioning inside the range and how quickly a role is progressing within that range. The other terms don’t describe pay relative to a range: ranked performance is about performance comparisons, reasonable accommodation concerns adjustments for disabilities, and purchase has no relevance to compensation ranges.

Range penetration describes where an employee’s pay sits within the pay range for the same job function. The pay range has a minimum and a maximum; range penetration is the portion of that range filled by the employee’s current salary. You calculate it by subtracting the minimum from the employee’s pay, then dividing by the total width of the range (maximum minus minimum). For example, if the range is $50,000 to $70,000 and the employee earns $60,000, the penetration is 50% because $60,000 is halfway between the minimum and maximum. This concept helps assess compensation positioning inside the range and how quickly a role is progressing within that range. The other terms don’t describe pay relative to a range: ranked performance is about performance comparisons, reasonable accommodation concerns adjustments for disabilities, and purchase has no relevance to compensation ranges.