Salary Banding SaaS for SMBs: Streamline Compensation Management
This post highlights a common challenge in HR: establishing and managing salary bands, especially when existing processes are paused or non-existent. Many small to medium-sized businesses (SMBs) or growing startups lack sophisticated compensation management tools, relying instead on manual spreadsheets or ad-hoc solutions, which are inefficient and error-prone. This creates a clear niche for a specialized SaaS product.
SaaS Opportunity: A dedicated, user-friendly SaaS platform for Salary Banding and Compensation Management tailored for SMBs.
Product Form:
- Job Architecture Builder: Intuitive interface to define job roles, levels, departments, and assign salary ranges (min, midpoint, max).
- Employee Mapping & Overview: Easily map employees to their respective roles and levels, visualizing their current compensation against defined bands.
- Visualization & Reporting: Dashboards to show salary distribution, identify outliers (employees above/below band), and generate reports for compensation reviews, budgeting, or board presentations.
- Market Data Integration (Optional but valuable): Allow users to import or manually input market benchmark data to inform their band definitions.
- Scenario Planning: Tools to model the financial impact of salary adjustments, promotions, or changes to compensation philosophy.
- Version Control: Track changes to salary bands over time for historical context and compliance.
Expected Revenue: This addresses a significant pain point for HR professionals and business owners. Pricing could be tiered based on the number of employees or active job roles managed. A typical pricing model could range from $50/month for smaller teams to $300+/month for larger SMBs. With a target of acquiring a few hundred customers, monthly recurring revenue (MRR) could quickly reach $10,000 - $60,000+, scaling significantly as more businesses professionalize their compensation strategies.
Origin Reddit Post
r/humanresources
Salary band [N/A]
Posted by u/rubyc1505•08/01/2025
Hey all. Was tasked with creating salary bands when hired, put on pause when our CPO left in the winter. Now being asked what we could do in the interim. I’m thinking loose job architecture,
Top Comments
u/rubyc1505
I’d love a template
u/Meegasaurusrex
Google Aon Radford Leveling to get the starter charts which define the generic leveling definitions for all roles.
You can get the market salary data from them but it’s very expensive! How
u/FeliciaExecCoach
what's your industry and how many levels do you have? i.e. many employees?
u/FeliciaExecCoach
You’re totally on the right track— I’d also think about adding some light guardrails for hiring managers so offers stay consistent, and maybe jot down a quick one-pager on how decisions are b
u/Xylus1985
That sounds about right. Try to find a way to match salary band to market compensation rate. Also need to design a system for people to move along the bands (promotion, transfer, etc)
u/FeliciaExecCoach
You’re totally on the right track— I’d also think about adding some light guardrails for hiring managers so offers stay consistent, and maybe jot down a quick one-pager on how decisions are b
u/Xylus1985
That sounds about right. Try to find a way to match salary band to market compensation rate. Also need to design a system for people to move along the bands (promotion, transfer, etc)
u/rubyc1505
I’d love a template
u/Meegasaurusrex
Google Aon Radford Leveling to get the starter charts which define the generic leveling definitions for all roles.
You can get the market salary data from them but it’s very expensive! How
u/Xylus1985
That sounds about right. Try to find a way to match salary band to market compensation rate. Also need to design a system for people to move along the bands (promotion, transfer, etc)
u/Meegasaurusrex
Google Aon Radford Leveling to get the starter charts which define the generic leveling definitions for all roles.
You can get the market salary data from them but it’s very expensive! How
u/Meegasaurusrex
Google Aon Radford Leveling to get the starter charts which define the generic leveling definitions for all roles.
You can get the market salary data from them but it’s very expensive! How
u/FeliciaExecCoach
You’re totally on the right track— I’d also think about adding some light guardrails for hiring managers so offers stay consistent, and maybe jot down a quick one-pager on how decisions are b
u/FeliciaExecCoach
what's your industry and how many levels do you have? i.e. many employees?
u/Xylus1985
That sounds about right. Try to find a way to match salary band to market compensation rate. Also need to design a system for people to move along the bands (promotion, transfer, etc)
u/rubyc1505
I’d love a template
u/rubyc1505
I’d love a template
u/FeliciaExecCoach
what's your industry and how many levels do you have? i.e. many employees?
u/FeliciaExecCoach
what's your industry and how many levels do you have? i.e. many employees?
u/Xylus1985
That sounds about right. Try to find a way to match salary band to market compensation rate. Also need to design a system for people to move along the bands (promotion, transfer, etc)
u/Meegasaurusrex
Google Aon Radford Leveling to get the starter charts which define the generic leveling definitions for all roles.
You can get the market salary data from them but it’s very expensive! How
u/FeliciaExecCoach
You’re totally on the right track— I’d also think about adding some light guardrails for hiring managers so offers stay consistent, and maybe jot down a quick one-pager on how decisions are b
u/FeliciaExecCoach
what's your industry and how many levels do you have? i.e. many employees?
u/rubyc1505
I’d love a template
u/FeliciaExecCoach
You’re totally on the right track— I’d also think about adding some light guardrails for hiring managers so offers stay consistent, and maybe jot down a quick one-pager on how decisions are b