which of the following would not be considered as an advantage of broadbanding? course hero

Why is broadband important in an organization?

Broadbanding reduces the number of levels or layers within a company. This is the best face-saving way for an organization to collapse salary ranges and supporting de-layering. This flattens an organizational structure and reduces the hierarchy.

What is the worst thing about broadbanding?

In my opinion the absolute worst thing about broadbanding is the severe reduction in opportunities for promotions. Fewer salary bands lead to fewer opportunities to climb to the next band; meaning fewer promotions to celebrate with family and friends. Think seriously before you minimize this great motivational tool. If you are committed to moving to broadbanding, yet this is of concern to you, keep an eye on your turnover rates and conduct exit interviews to monitor the pulse of why your talent is moving to your competitors.

What is Broadbanding in Compensation?

Broadbanding is the term applied to having extremely wide salary bands, much more encompassing than with traditional salary structures. Whereas a typical salary band has a 40 percent difference in pay between its minimum and maximum, broadbanding would typically have a 100 percent difference. Most of the time, creating enormously large bands is done as a measure to support a restructuring. It combines and consolidates the number of levels or job grades. This article will discuss the advantages of broadbanding in an overall compensation strategy, as well as the disadvantages.

Is broadbanding good for management?

Broadbanding’s flexibility and trust in management may or may not be warranted. In a broadbanding system, it is relatively easy to have two people with the same responsibilities have earnings that are thousands and thousands of dollars apart. Broadbanding weakens the linkage between salary growth and skill development for the next higher-level, since it is so far off as to not be a motivator. Do you want supervisors and their direct reports in the same pay band? That can easily happen with broadbanding.

Is there a midpoint in a broad band?

With broadbanding, if a manager wants to pay at the market midpoint, they are left baffled and guessing. There is no midpoint in a broad band. That also means the compa-ratio tool can not be used.

Is broadbanding a good tool?

It is your call whether broadbanding is a tool for use in your organization or not. Broadbanding is a very effective tool to reduce salary grades or job classifications, but it definitely has its draw backs.

Why do companies have broadband?

This can help motivate them to continue to perform well without seeking a promotion. Broad salary bands allow you to show your employees how valuable they are to the company, no matter what position they have. Helping your employees feel valued can create a positive work environment, which can help increase morale, employee commitment and productivity.

Why do businesses use broadbanding?

This is because these businesses often have fewer job levels for which they need to determine a pay range.

What is broadbanding?

Broadbanding is when businesses set a wider-than-normal salary band, or pay range, for a job level. Businesses typically create many salary bands that cover narrow pay ranges. These salary bands often overlap each other. When broadbanding, businesses usually create fewer salary bands that each cover a much broader pay range. With broadbanding, these pay ranges overlap much less often.

Why is broadband pay important?

This is because the broad salary band allows each employee to earn increasingly more pay while remaining in the same position .

What is broadband pay structure?

Broadband salary structures are an adaptable way of compensating your employees that offer many benefits. Understanding what broadbanding is can help you determine whether this pay structure fits your company. In this article, we define broadbanding, briefly describe how it works and list many of its advantages and disadvantages to help you decide whether this type of compensation might benefit your business.

How does broadband pay work?

You can then create a hierarchy for those jobs based on the level of importance of each group. In a broadband pay structure, each group has a wide range of potential salaries they can earn. Simply put, each job shares its salary band with many other similar jobs within the company with managers supervising several related teams.

Why are salary bands important?

Because broad salary bands motivate employees to have a wide range of skills, it reduces the need for many employees to have narrow skill sets. This allows you to have many employees capable of performing multiple roles depending on your company's needs. This is helpful when assigning tasks, completing projects and setting company goals.