Salary Band Builder

Build a pay structure from your job data. Set the Grade 1 midpoint at your chosen market position, enter each employee’s grade and salary, and see the grade boundaries, range midpoints, and compa ratios calculated for you.

One Excel workbook that turns job data into a pay structure

Start with a working model and a worked example. Enter your own structure settings and employee data, and the workbook calculates grade boundaries and compa ratios. You can see how the calculations work before entering your own figures.

• Salary Band Builder. Enter the Grade 1 midpoint from your market data, the midpoint progression between grades, and the range spread. The workbook builds eight grades, each with a minimum, midpoint, and maximum. On Employee Placement, enter each employee’s grade and current salary. The workbook calculates compa ratio, range penetration, and whether each salary falls below, within, or above range. The tab also counts employees outside their ranges.
• A board-ready summary, sourced benchmarks, and clear calculation notes. The one-page Summary brings together your structure parameters, average compa ratio, and counts of employees within, below, and above their ranges for compensation reviews and budget discussions. The Benchmark tab includes range spread and midpoint-progression norms from WorldatWork and Mercer. The Notes tab explains how each number is calculated.

Build your pay structure in three steps

Start with your salary range settings, add employee salaries, and review the resulting bands and compa ratios. You will also see how many employees fall outside their ranges.

• Choose your salary range settings. Enter three values in the amber cells: the Grade 1 midpoint from your market data, the midpoint progression between grades, and the range spread as a percent from minimum to maximum. The workbook uses them to build eight grades for your jobs.
• Add employee salaries. On Employee Placement, enter each person’s grade and current salary. The workbook calculates compa ratio, range penetration, and whether the salary falls below, within, or above range.
• Plan for salaries outside the range. For each person marked below or above range in the Status column, record the plan on the Notes tab. That may mean a raise to the band floor, a freeze, or a documented exception. You can address those cases before putting the structure into use.

Start with the market, then review individual pay

A pay structure starts with market data. Set the salary bands first, then compare individual salaries against them. This gives you a consistent basis for reviewing whether your ranges are competitive and how pay is applied across employees.

• Start with your market midpoint. Set the Grade 1 midpoint at your target market percentile, then apply your chosen midpoint progression to each higher grade. Employees below midpoint have room for pay growth. Employees above midpoint are paid above your market target, which is worth considering in future pay decisions rather than treating as an immediate correction.
• Compare salaries using compa ratios. A compa ratio of 1.0 means someone earns exactly the range midpoint. A ratio of 0.85 means they earn 85% of it. Reviewing compa ratios across employees helps you assess how consistently the structure is applied and whether pay has drifted.
• Review salaries below the range minimum first. Employee Placement identifies each person below minimum, and the Summary counts them. These cases can present compliance and retention risks. Bringing employees to midpoint or above is a separate, broader compensation decision.

Who this workbook is for

Built for

• HR and compensation leaders building a pay structure from scratch or reviewing an existing structure against the market.
• Finance and HR partners preparing for the next compensation review and assessing how many employees fall below, within, or above their ranges.
• Small business owners establishing pay ranges for the first time and wanting a clear structure before the next round of hiring.

If you are looking for

• For merit increase budgets that distribute raises within these bands, see the Merit Increase Matrix.
• For internal equity reviews across roles and levels, see the Pay Structure and Internal Equity Review.

Before you buy

What format is it and can I edit it?

You receive one Excel workbook that also works in Google Sheets. The download is five files: the workbook, a Start Here, the one-page Quick Reference, the product license, and a short guide to using it in Google Sheets. Every input and formula is editable. Insert rows inside the table to add employees. You can also duplicate the file to model a second structure or run the next year’s review.

Where can I find market salary data?

You can use compensation surveys, published salary tools, or data from a compensation consultant. Free sources include the BLS Occupational Employment and Wage Statistics tables. Surveys from Mercer, Willis Towers Watson, or Radford provide more detail by job level and industry. Enter the 50th-percentile figure for your lowest grade as the Grade 1 midpoint, or choose a higher percentile if your pay strategy leads the market.

What is the refund policy?

Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase.

What happens after I buy?

Your download link is available immediately after checkout, and a receipt with the same link arrives by email. Open the workbook in Excel or Google Sheets, enter your salary range settings, and add your employees. For questions or help getting started, email support@truestephr.com.

How the download works

Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.

Scope

These are planning estimates, not legal advice. Confirm market rates from a current survey and have qualified counsel review any pay-equity exposure before acting on the findings.