How to Assign Salary Grades Based on Salary Ranges?
Salary Grade Assignment Formula is a Excel function that categorizes an employee's salary into predefined pay grades based on specified thresholds.. Formula Genius generates and validates this formula automatically from a plain-English prompt.
Assigning pay grades helps in standardizing employee compensation based on their salary. This formula simplifies the process of categorizing salaries into defined ranges.
The Formula
"Assign a pay grade or job band to an employee based on their salary falling within defined ranges"
=IF(A1<30000, "Entry Level", IF(A1<60000, "Mid Level", IF(A1<90000, "Senior Level", "Executive Level")))This formula categorizes an employee's salary into predefined pay grades based on specified thresholds.
Step-by-Step Breakdown
- Step 1: Check if the salary (A1) is less than 30,000; if true, assign 'Entry Level'.
- Step 2: If not, check if the salary is less than 60,000; if true, assign 'Mid Level'.
- Step 3: If not, check if the salary is less than 90,000; if true, assign 'Senior Level'.
- Step 4: If none of the above conditions are met, assign 'Executive Level'.
Edge Cases & Warnings
- Salary exactly at the boundary (e.g., 30000) may lead to confusion on grade assignment.
- Negative salary values should be handled to avoid incorrect classifications.
- Salaries above the highest defined range (e.g., 90000) default to 'Executive Level'.
Examples
"Salary of 25000"
Entry Level"Salary of 75000"
Senior LevelFrequently Asked Questions
Can I customize the salary ranges?
Yes, you can adjust the thresholds in the formula as needed.
What happens if the salary is not a number?
The formula will return an error if the input is not numeric.
Is there a way to add more salary grades?
You can nest additional IF statements to include more salary ranges.
Can't find what you need?
Describe any formula in plain English and Formula Genius will generate, explain, and validate it — instantly.