What does a salary range indicate?

A salary range indicates a spectrum of compensation for a position, setting the minimum and maximum amount that an employer is willing to pay for a specific role. This range allows for flexibility in compensation based on various factors, such as an employee's experience, education, and performance. Salary ranges are advantageous for employers as they provide a framework for developing competitive pay packages while still allowing for negotiation within the established limits.

In contrast, a specific salary amount refers to a fixed figure and doesn’t convey the variability associated with different candidates' qualifications or negotiations. Overtime pay rates and bonus structures pertain to different aspects of employee compensation and do not encompass the general salary range for a position. Therefore, recognizing that a salary range signifies a broader spectrum capable of accommodating various candidate situations is essential in the context of salary negotiation and compensation planning.