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You want to pay your employees accurately and at market levels. There are several metrics you can use to ensure fair pay. Salary range penetration is a crucial compensation metric to help you understand and manage pay differences at your organization. Let’s have a closer look at this metric and find out how HR can enable managers to use salary range penetration in their hiring, salary raise, and promotion decisions. ContentsWhat is salary range penetration?How do you calculate salary range penetration?Why is salary range penetration a useful compensation metric?How can HR enable managers to use salary range penetration? What is salary range penetration? Salary penetration looks at the position of the salary in its pay band. It lets employees and HR and compensation professionals know where someone stands in relationship to the entire salary band. If your salary bands are too broad, then the information isn’t helpful. Still, with properly calculated salary bands, you can clearly see where someone stands with their relationship to market rate. It gives you very similar information to the compa ratio metric. One key difference is that salary penetration looks at the salary compared to the entire pay range, while compa ratio focuses only on