And if you are right and that becomes a problem, well, shit. Back to the drawing board I guess.
I'm not sure I'd trust a company who thought that software engineer value creation only varied by a maximum of 20% either. Tight ranges cut against companies differently than broad ranges.
But hiring is not evaluating a software engineer in general, rather it's to find a person for a specific role and a specific set of work to be done, a tighter range could mean better estimation.
1. If someone has 10 years of experience and gets offered $150K, they know they're at half the earning potential. That's not a good way to come into the job.
2. Employees may monitor the job postings of their own company, then ask for a raise closer to the $300K ceiling, especially if they know they're valuable contributors.
"Hey you said this job paid 300k, what gives?"