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Totally agree. It feels odd when impact and context aren’t factored in. Some folks exceed expectations in lower-level roles while others coast at the top. Why not calibrate compensation to contribution?
It has to do with pay equity and people in similar roles at similar levels being compensated accordingly. Its so hiring manager X can't hire his buddy's kid at an inflated salary and offer you a lesser salary. Having salary ranges is actually a good thing, not a bad thing. It takes a lot of bias out of the process. To that note, the range is there to accommodate someone low in level and someone high in level, though being hired at a salary near or at the top threshold of a role means you don't have much room to progress in that salary band unless you promote up.
You’re right. Impact and results vary, so rigid ranges can undervalue top performers. Many companies use ranges as guidelines, but strong negotiation and demonstrated value can often move the number higher.