Range Penetration

Range Penetration

What is Range Penetration? Position in Pay Band Explained

Formula: Range Penetration = (Salary - Band Min) / (Band Max - Band Min) x 100

If the band is $80K-$120K and someone earns $95K: ($95K - $80K) / ($120K - $80K) x 100 = 37.5%. They're 37.5% through their band.

Range penetration differs from comp ratio. Comp ratio compares to midpoint. Range penetration shows position within the entire band. HR uses it to identify employees clustering at the top (may need promotion) or bottom (may need adjustment).