# What are Pay Bands?

Pay bands are salary ranges for each level. SMEs use them to ensure fairness, control costs, and make offers quickly. Transparent bands reduce negotiation friction and help managers plan growth paths without one-off exceptions.

Source: https://faqtic.co/glossary/pay-bands

## Why it Matters for SMEs

- Ensures fairness
- Controls costs
- Speeds offers

## Example in Practice

Factorial stores bands by role level for reference during reviews.

## Frequently Asked Questions

### How many bands?

As many as levels you have.

### Share bands with staff?

Increasingly yes, for transparency.

### Update frequency?

Yearly, or when market shifts.

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