What is a 'salary band' and how does it guide career progression?

• A. A fixed salary that never changes.
• B. A salary range tied to job level; progress within bands reflects performance and experience; promotions move to higher bands.
• C. A range used only for entry-level positions.
• D. An annual bonus system without base salary.

Answer: (B)

Salary bands are salary ranges tied to job levels within a company. Each band defines the typical pay for roles at that level, usually with a minimum, midpoint, and maximum. As you build skills, gain experience, and take on more responsibility, you can progress within the same band (with pay increases as you advance) and, when ready, move to a higher band through a promotion. When you are promoted to a higher band, the new range is higher, guiding your expected salary path as you grow in your career. This structure helps with internal equity and market competitiveness and gives employees and managers a clear sense of how compensation can grow with performance and responsibility. Not a fixed salary that never changes, bands allow movement within and between levels; they aren’t only for entry-level roles, and they anchor pay in base salary rather than being based solely on bonuses.