Broadbanding

A pay structure that exchanges a large number of narrow salary ranges for a smaller number of broader salary ranges. This type of pay structure encourages the development of broad employee skills and growth while reducing the opportunity for promotion.

Employees are motivated to by broadbanding towards internal movement within the organization. It emphasises other attributes of a position, other than the pay grade which is already disclosed. Resulting in more transparency and added trust in management. This type of structure is found in flattened organizations where there is a reduced chance of promotion in terms of responsibility. Pay can be increased and further training opportunities are made available without the promotion of employees.

Instigating salary ranges and fewer job classifications encourages the development of broad employee skills. Promoting a shared skill development across the entire organization.