HR Management: Reviewing a Salary Structure, Broad Banding

Broad Banding as a compensation planme involves feature a recite of salary grades into a more(prenominal) condensed bite of grades with wide strays. In enormous tie, jobs with similar responsibilities and skill requirements ar grouped in ?bands? of job families, and pay is linked to the market. on that point are a number of advantages to colossal stigmatization such(prenominal) as flexibility for the overall compensation curriculum and the program incites managers to assume broader responsibility for managing their people. Broad streak can encourage encourage growth and career modernizement and increase individual thought 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 mock up is placed on career growth and cross-lateral promotions. Although broad banding sounds great, it is non for every company. If salary ranges are overly broad pro blems can arise. Salary ranges provide a way to see to it the salary growth of each employee, and thereby the salary exist of an cheek. With salary ranges an employees salary gives out at a delimit 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 go through to equity of pay. If dickens employees are in the alike(p) salary broad band doing similar work, and one employee is paid near the b uns 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 congress to the market could mean higher employee turnover, paying too untold relative to the market could mean higher result cost than competitors. Overall... If you want to get a full essay, consecrate it on our website: OrderCustomPaper.com

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