Which term describes the difference between the lowest and highest pay for a particular job?

Which term describes the difference between the lowest and highest pay for a particular job?

• A. Ransom
• B. Range
• C. Raise
• D. Ranked performance

Answer: (B)

Range describes the spread between the minimum and maximum pay for a specific job. It represents how wide the compensation band is for that role, showing the potential pay distance an employee could move within that job or level. This concept is used to manage internal equity and external competitiveness, and to communicate expected salary boundaries. The other terms don’t fit: ransom is unrelated to compensation; raise means an increase in pay for an individual; ranked performance refers to performance ratings, not the pay spread.

Range describes the spread between the minimum and maximum pay for a specific job. It represents how wide the compensation band is for that role, showing the potential pay distance an employee could move within that job or level. This concept is used to manage internal equity and external competitiveness, and to communicate expected salary boundaries. The other terms don’t fit: ransom is unrelated to compensation; raise means an increase in pay for an individual; ranked performance refers to performance ratings, not the pay spread.