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range maximum

What is range maximum in compensation?

Range maximum is the highest rate you are willing to pay for a role. The range maximum can be reflected as a fixed amount or as a ratio between the range minimum and range maximum. 

There are various reasons an employee could be paid at the maximum of the range: 

  • The employee is classified as HiPo (High Potential) and displays behaviors and skills required to rise into critical positions. This generally constitutes only 5% of a company.
  • The employee has spent a long time at the company and is seen as a highly valuable asset. Losing the employee will result in detrimental business outcomes.