Would you have concerns about being brought in at the ceiling of the salary range?

I am considering relocating for a position but I have some reservations about being brought in at the absolute maximum of the range what they are willing to pay. That same number is the absolute minimum I'd consider to relocate. In all my HR classes I always understood that you wanted be at mid-point of a salary range or below to have room for salary growth going forward. Any sage advice from my TE brothers and sisters?

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hinsdahl00

If that was the only consideration then I wouldn't be planning on occupying the position for long. I could see the attraction if it was particularly interesting work or there were other benefits aside from base salary (tuition reimbursement, training opportunities, vacation, etc).

Ertaz

hinsdahl00 wrote: »

If that was the only consideration then I wouldn't be planning on occupying the position for long. I could see the attraction if it was particularly interesting work or there were other benefits aside from base salary (tuition reimbursement, training opportunities, vacation, etc).

I haven't broken down the benefits package just yet. We shall see.

Blucodex

Why wouldn't you want the most money possible? How does being in the middle of a range benefit you?

Ertaz

Blucodex wrote: »

Why wouldn't you want the most money possible? How does being in the middle of a range benefit you?

Being at the top of a range limits the raise you can get to how much the range expands for cost of living.

**SAMPLE FOR CLARITY**

Say you came in at 125K for job that has a range of 95 to 125K. Assuming that the range expands %3 for the cost of living, then your max Salary is 128.75K. However, if your range is 120K to 150K and you're doing a good job your raise could be higher, say %5, bringing your salary to 131.25K. It gives you lattitude to progress more quickly toward the midpoint without changing jobs.

https://www.shrm.org/resourcesandtools/tools-and-samples/how-to-guides/pages/howtoestablishsalaryranges.aspx

yoba222

Are you positive on that cost of living raise assumption? Not all places do that. In theory you might still be at 125k 5 years from now, for example.

Ertaz

yoba222 wrote: »

Are you positive on that cost of living raise assumption? Not all places do that. In theory you might still be at 125k 5 years from now, for example.

While that is a possibility, every company I've ever worked for has shifted their ranges every year.

DatabaseHead

Do you get a bonus or profit sharing?

Is there a HARD cap or a soft cap?

I came in over a 100,000 which is MAX in my position. In doing so I get 2.75 increase, no more.....EVER annualized year over year. I fall under the "soft cap" so I would get some but not much.....

My bonus is 15% of my base so that factors in as well. That's how I justified it.....

TechGuru80

Did you actually get offered the maximum? I’ve never known a company to actually offer the top as that means that person has nowhere to get a raise and is not going to be “motivated.”

TechGromit

My answer depends on if you relocating to a new area for future opportunities, or your only relocating for this specific job. If your relocating for your future, I'd take it and look around for something better in a couple years. But if your relocating to middle of nowhere Kansas just for this job, I'd turn it down.

Ertaz

DatabaseHead wrote: »

Do you get a bonus or profit sharing?

Is there a HARD cap or a soft cap?

I came in over a 100,000 which is MAX in my position. In doing so I get 2.75 increase, no more.....EVER annualized year over year. I fall under the "soft cap" so I would get some but not much.....

My bonus is 15% of my base so that factors in as well. That's how I justified it.....

Bonus structure is minimal. They've given me indications that the cap is soft. I will officially ask and get everything in writing if I decide to move forward.

Did you actually get offered the maximum? I’ve never known a company to actually offer the top as that means that person has nowhere to get a raise and is not going to be “motivated.”

They let me know the amount I'm asking for is the maximum that they would pay.

My answer depends on if you relocating to a new area for future opportunities, or your only relocating for this specific job. If your relocating for your future, I'd take it and look around for something better in a couple years. But if your relocating to middle of nowhere Kansas just for this job, I'd turn it down.

It's definitely the area. It's one of three areas I'm considering because of the job market. The market I'm in now only has one high-end tech employer, and they know it.

LeBroke

Haven't worked in large, bureaucratic companies, so take it with a grain of salt, but..

If a company is bringing you in at the top end of their scale, wouldn't it mean you're 1-2 steps short of a promotion to a position higher up the scale?

Like, if you're an SDE III and getting 120k in a range of 90-120k, they probably think you're borderline there to be an SDE IV, and should be able to qualify for a promotion within a few years.

I mean sure, it's better to get the same 120k if a company has a range of 100-130k since you have room to get up to 130k, but this is up to the company and how they define their bands, no? Therefore should have no real effect on you. Unless you can swing a higher job title at the same pay (i.e. come in as SDE IV at the same 120k salary when the band is 120-150).

But in any case, if the area you're moving to has a good tech market, all this is moot. You should be able to walk into another higher-paying tech job once you feel like giving yourself a raise.

TechGuru80

Ertaz wrote: »

They let me know the amount I'm asking for is the maximum that they would pay.

I am guessing either one of two things...either they are telling you they cannot afford you in which you won't get the job, or that is the high end of what they will bring somebody in at on the scale for that position. I have definitely seen were an amount is stated as the maximum, because if they want to go any higher they will need a higher level approval (director or VP+).

In all of the companies I have been at and interviewed with, the general practice is somewhere around 30-50% of the pay scale because that allows enough room for annual raises and won't force them to immediately promote you. I did have a job that brought me in around 65-70%, but since a lot of companies (including that one) would slightly adjust the pay scale every year, the 2-3% annual raise actual ending up not making up for the difference (so you go down on the pay scale).

What kind of company are we talking about here? Fortune 500? 1000? Or like a company with <500 people? Specifically why I ask is because the more established the company is, the less "obscure" type of things happen...but if the company is like 100 people, things can get weird fast.

albinorhino187

Hiring range can be different from the pay band once you're an employee.

Ertaz

TechGuru80 wrote: »

I am guessing either one of two things...either they are telling you they cannot afford you in which you won't get the job, or that is the high end of what they will bring somebody in at on the scale for that position. I have definitely seen were an amount is stated as the maximum, because if they want to go any higher they will need a higher level approval (director or VP+).

In all of the companies I have been at and interviewed with, the general practice is somewhere around 30-50% of the pay scale because that allows enough room for annual raises and won't force them to immediately promote you. I did have a job that brought me in around 65-70%, but since a lot of companies (including that one) would slightly adjust the pay scale every year, the 2-3% annual raise actual ending up not making up for the difference (so you go down on the pay scale).

What kind of company are we talking about here? Fortune 500? 1000? Or like a company with <500 people? Specifically why I ask is because the more established the company is, the less "obscure" type of things happen...but if the company is like 100 people, things can get weird fast.

They aren't fortune 500, but they are worth around 5 Billion.

eansdad

albinorhino187 wrote: »

Hiring range can be different from the pay band once you're an employee.

Would 2nd this....Their starting pay vs pay raises may be different. If that is the range of the job title then I would not expect to be in that role long.

ansionnachcliste

albinorhino187 wrote: »

Hiring range can be different from the pay band once you're an employee.

I agree. The hiring pay doesn't really limit your potential earnings.

They are most likely erring on the side of caution.