Broad Banding

Broad Banding is the practice of combining many previously discrete job titles, ranks and pay grades into much wider categories. 

It is a strategy for salary structures that consolidate a large number of pay grades into a few “broad bands.”

“Practice in which the number of grades in a pay-scale structure is reduced, and the differential between one grade and the next is increased. Broadbanding is said to decrease intra-firm rivalry in employees and to increase inter-firm (or cross-departmental) flexibility.”

Think-

• Advantages
• Disadvantages
• Objectives