Which term refers to the range between the minimum and maximum pay for similar jobs?

Which term refers to the range between the minimum and maximum pay for similar jobs?

• A. Parochialism
• B. Per diem
• C. Pay range
• D. Performance appraisals

Answer: (C)

The concept being tested is how compensation is structured across similar roles. A pay range defines the span of pay for a given job family or level, outlining the minimum and maximum amounts that could be paid to someone in that role. This range, with its minimum and maximum, helps ensure internal equity and market competitiveness when hiring or promoting, and it guides decisions about starting salaries and raises. The other terms don’t describe compensation bands: parochialism is a narrow, inward focus on one group; per diem is a daily allowance for travel expenses; and performance appraisals are evaluations of an employee’s performance. So the term that fits is pay range.

The concept being tested is how compensation is structured across similar roles. A pay range defines the span of pay for a given job family or level, outlining the minimum and maximum amounts that could be paid to someone in that role. This range, with its minimum and maximum, helps ensure internal equity and market competitiveness when hiring or promoting, and it guides decisions about starting salaries and raises. The other terms don’t describe compensation bands: parochialism is a narrow, inward focus on one group; per diem is a daily allowance for travel expenses; and performance appraisals are evaluations of an employee’s performance. So the term that fits is pay range.