Salary ranges are a powerful way for modern companies to address some of the biggest internal and social challenges on the path to IPO and/or continued hyper-growth. Well-constructed pay ranges help employers convince top talent to accept offers and keep rockstar employees longer – while managing burn and equity dilution. Salary ranges can also help companies answer the growing demand for pay equity and transparency from workers, corporate boards, and state legislators. What exactly are pay ranges? Salary bands, aka salary bands, set the boundaries for salaries for roles or groups of roles. They’re not arbitrary numbers that bookend a target. Like most things comp related, building pay ranges that are right for your organization requires reliable data, strategy, and foresight. In this article, we’ll review the things to consider – and avoid – for salary ranges that support your business today and its vision for the future.