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.