Imagine a mid Human Resources Manager in Paris. This position has an annual salary of 70,000€. The salary range is 55,000€ - 82,200€. Applying the range penetration formula:
Range Penetration = (Compensation – Min)/(Max-Min)
Range penetration = (70,000-55,000)/(82,200-55,000) = 15,000/27,200 = 0.55 or 55%.
This salary is 55% into its salary range.
