HR Word : Broadbanding

Broadbanding definition

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Organisations with broadband pay structures have broader salary ranges but there are fewer one of them – this type of structure is found in flattened organisations where there is a reduced chance of promotion in terms of responsibility. Broadbanding allows organisations to increase pay and offer opportunities for training without promoting employees.

Broadband pay structures aren’t as sensitive to changing market conditions and also allow skills to more easily develop because there’s an increased emphasis placed on jobs without traditional areas of responsibility, such as managers.

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