Broadbanding is the term applied to having extremely wide salary bands, much more encompassing than with traditional salary structures. Whereas a typical salary band has a 40 percent difference in pay between its minimum and maximum, broadbanding would typically have a percent difference. Most of the time, creating enormously large bands is done as a measure to support a restructuring. It combines and consolidates the number of levels or job grades. This article will discuss the advantages of broadbanding in an overall compensation strategy, as well as the disadvantages. Sometimes an organization has become too hierarchical for the strategic direction of the company; finding it has become too slow to react, taking too much time to get information from the top down and even less effective at getting messages from the lower rungs up to the ears of senior management.
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Whether you're writing paychecks or wondering where yours comes from, this course is for you! We begin by asking: "To succeed, what kind of a person does your organization need to attract, retain, and motivate? Interested in learning more about the technical aspects of compensation, but don't know where to begin? We'll give an overview of key the key technical skills: compliance with pay regulations, understanding stock options, shopping for health insurance and pension providers, and designing incentive plans.
Lastly, we'll discuss non-monetary methods of motivating employees. Upon completing the course, you should be able to have an understanding of compensation both strategically and technically. Learners will also gain introductory familiarity with pay regulation in the US. It was a very rigorous course and well structured. However peer review should be optional because people do not really review and the whole fate of the course keeps hanging on someone else's will.
This course gave me the overview on compensation and benefits I was looking for. The professor explanations are clear and well detailed. I recommend this class for anyone interested on the topic. Loupe Copy. Managing Employee Compensation. Enroll for Free. From the lesson. This module covers designing a compensation strategy and translating that into a pay structure.
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What is Broadbanding in Compensation?
Benefits of Broadbanding Broadbanding has been successfully implemented in large, hierarchical organizations which attempted to flatten their organizations and remove levels of management. For example, organizations that had eight levels of management could eliminate four levels, widen the salary ranges of the remaining four levels, and simply slot each manager into one of those ranges. In contrast, the jobs in traditional organizations are narrow and specialized. In order for employees to advance in pay and responsibility, they have to further develop their specialized skill.
Whether you're writing paychecks or wondering where yours comes from, this course is for you! We begin by asking: "To succeed, what kind of a person does your organization need to attract, retain, and motivate? Interested in learning more about the technical aspects of compensation, but don't know where to begin? We'll give an overview of key the key technical skills: compliance with pay regulations, understanding stock options, shopping for health insurance and pension providers, and designing incentive plans. Lastly, we'll discuss non-monetary methods of motivating employees.
The Advantages of Broadbanding
To do this, we need to analyze and come out with recommendations. Part of the challenge is whether to recommend narrow banding so our people feel their careers progressing quickly or broad banding. These bands that define grades are accompanies by salary ranges that are just as wide and there is usually no notion of midpoint as it would not make sense in such an open context. Companies that implement broad banding usually do so in order to reflect the flatter hierarchies that exist in some organisations today. They want to reflect the fact that jobs are more fluid nowadays, and that progression in the company is based on the acquisition of skills rather than traditional promotions tied to performance. In broad banding, the emphasis is on development through lateral moves and the acquisition of competencies rather than vertical progression in the hierarchy. This approach works well in young organisations such as startups for example, where roles evolve constantly and employees acquire new skills and responsibilities as needed and often in a very informal manner that is aligned with the company culture.