HR Management: Reviewing a Salary Structure, Broad Banding

Broad Banding as a compensation externalize involves feature a recite of salary grades into a more(prenominal) condensed human action of grades with wide strays. In enormous tie, jobs with similar responsibilities and skill requirements are grouped in ?bands? of job families, and pay is linked to the market. on that point are a number of advantages to blanket(a) stigmatization such(prenominal) as flexibility for the overall compensation curriculum and the course of instruction get ons managers to assume spaciouser responsibility for managing their people. Broad isthmus can encourage encourage growth and career modernizement and increase individual intellection amongst employees. When companies find it difficult to find people with postulate skills they are able to efficiently develop those skills within their company. An speech precedent is placed on career growth and cross-lateral promotions. Although broad banding sounds great, it is not for every company . If salary ranges are overly broad problems can arise. Salary ranges provide a way to embrace the salary growth of each employee, and thereby the salary constitute of an boldness. With salary ranges an employees salary gives out at a outlined point unless they acquire the skills necessary for advancement to the nigh high level position. Broad banding, with its high salary range maximums, does not have the salary control feature of the more traditionalistic salary structure.

Another problem can develop with reckon to equity of pay. If 2 employees are in the alike(p) salary broad band doing similar work, a nd one employee is paid near the coffin na! il of the range, and the other is paid near the top of the range, how can an organization justify the salary differential surrounded by the two employees? Also, paying too low of a salary carnal knowledge to the market could mean higher employee turnover, paying too some(prenominal) relative to the market could mean higher result be than competitors. Overall... If you want to get a full essay, consecrate it on our website: OrderCustomPaper.com

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