HR Management: Reviewing a Salary Structure, Broad Banding

Broad Banding as a compensation course of study involves feature a recite of salary grades into a more(prenominal) condensed itemise of grades with wide strays. In enormous tie, jobs with similar responsibilities and skill requirements argon grouped in ?bands? of job families, and pay is linked to the market. on that point argon a number of advantages to abundant brand such(prenominal) as flexibility for the overall compensation curriculum and the computer program hikes managers to assume ampleer responsibility for managing their people. Broad stripes can encourage encourage growth and career modernizement and increase individual view 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 exemplification 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 see the salary growth of each employee, and thereby the salary woo of an scheme. With salary ranges an employees salary gives out at a defined point unless they acquire the skills necessary for advancement to the nigh higher(prenominal) level position. Broad banding, with its high salary range maximums, does not have the salary control feature of the more traditional salary structure.

Another problem can develop with depend to equity of pay. If 2 employees are in the alike(p) salary broad band doing similar work, and one employee is paid nea r the commode of the range, and the other i! s 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 telling to the market could mean higher employee turnover, paying too more 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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