You are conducting an audit of the HR Generalist pay grade. Currently, the pay g

Question

You are conducting an audit of the HR Generalist pay grade. Currently, the pay grade range is between $38,000 and $54,000. However, you have had some voluntary turnover recently and during the exit interviews people have indicated their salary is not competitive. You ran a regression analysis and the market pay lines indicate that median wage for this position should be $50,000. With this as the midpoint and a range spread of 40%, what should be the new pay grade range (round to the nearest thousandth)? o $42.000-$58,000 $41,000-$59,000 $41,000-$58,000 O $42,000-$59,000 4 Previous Next

Explanation / Answer

Given : range spread =40%=0.4

Midpoint = $50,000

Formula for minimum pay = midpoint/[1+ range spread/2 ]

=50000 /[1+ 0.4/2] =50000/1.2 = 41.6667

Rounding off to nearest thousand

=$ 42,000

Maximum pay = minimum [1+range spread]

= 41.6667 [1+.4] = 58,333.334

Rounding off to nearest thousand

= $58,000

Option A. $42,000-$58,000 is the correct answer

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