What is Broadbanding?

Broadbanding is a compensation approach consolidating a range of similar job classifications into a single pay band. This encompasses a much broader range of compensation levels than traditional salary structures and results in reducing the number of pay grades.

A traditional salary band usually has a range spread of 25-60% in its single-step grade structure, whereas a broadband structure often has an 80 to 300% in the low-end and high-end scales.

A broadband approach gives management a wider range and flexibility to pay employees.