Which term describes the amount covered, or the amount of difference between the lowest and highest amount paid for a particular job?

Which term describes the amount covered, or the amount of difference between the lowest and highest amount paid for a particular job?

• A. Raise
• B. Range
• C. Range penetration
• D. Purchase

Answer: (B)

The concept here is the idea of a pay range—the spread of compensation that a job can receive within its salary band. The range describes the difference between the minimum and maximum pay for that job, i.e., the amount covered by the range. For example, if a job’s pay range runs from a minimum to a maximum, the distance between those two amounts is the range—the width of the pay band that defines how much can be paid for that role without changing pay levels. A raise refers to an increase given to an individual employee, not the overall spread of pay for the job. Range penetration describes where a particular salary sits within the range, often as a percentage of the range, rather than the total width itself. Purchase is not related to compensation.

The concept here is the idea of a pay range—the spread of compensation that a job can receive within its salary band. The range describes the difference between the minimum and maximum pay for that job, i.e., the amount covered by the range. For example, if a job’s pay range runs from a minimum to a maximum, the distance between those two amounts is the range—the width of the pay band that defines how much can be paid for that role without changing pay levels.

A raise refers to an increase given to an individual employee, not the overall spread of pay for the job. Range penetration describes where a particular salary sits within the range, often as a percentage of the range, rather than the total width itself. Purchase is not related to compensation.