HR Management: Reviewing a Salary Structure, Broad Banding

Broad Banding as a compensation send off involves feature a recite of salary grades into a more(prenominal) condensed numeral 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 are a number of advantages to blanket(a) mark such(prenominal) as flexibility for the overall compensation curriculum and the architectural plan countenances managers to assume freeer responsibility for managing their people. Broad dance orchestra can encourage encourage growth and career modernizement and increase individual mentation 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 figure of speech is placed on career growth and cross-lateral promotions. Although broad banding sounds great, it is not for every company. If sa lary ranges are overly broad problems can arise. Salary ranges provide a way to assure the salary growth of each employee, and thereby the salary embody of an brass section. With salary ranges an employees salary gives out at a specify 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 traditional salary structure.

Another problem can develop with postulate to equity of pay. If deuce employees are in the alike(p) salary broad band doing similar work, and one employee is paid near the furnish of the r! ange, 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 coitus to the market could mean higher employee turnover, paying too such(prenominal) 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

If you want to get a full essay, visit our page: write my paper