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BROADBANDING         Saswat Barpanda   evangelist.student@gmail.com
OVERVIEWGOALS/OBJECTIVES• Decentralize compensation management &  administration• Reduce the need for reclassification rev...
Broad Banding• Involves collapsing salary grades into a few  broad bands, each with a sizable range  – One minimum and one...
Broad Banding (cont.)• Purposes  – Provide flexibility to define job responsibilities    more broadly  – Foster cross-func...
Exhibit 8.19: From Grades to Bands
Exhibit 8.20: Contrasts Between       Ranges and Bands
Steps Involved in Broad Banding• Set the number of bands• Price the bands: Reference market rates   – Reference rates• Fle...
Exhibit 8.21: Reference Rates Within Bands
What is Broadbanding?5L    1L   60K   30K15L   5L   1L    60K
• In a broadband pay structure, the numbers  of salary grades are consolidated into fewer,  but broader, pay ranges. In br...
BAND DEFINITIONSLEADERSHIP: Implements long-range objectives & links to strategic plans of the  organization, has signific...
BAND SALARY RANGE AND PAY       ZONE DEVELOPMENT• Broad salary ranges are created for each band to  accommodate the divers...
Band And Zone Pay Ranges        Administrative/Operational Support Bandnimum                                              ...
Band And Zone Pay RangesProfessional Band         Minimum                                 Maximum     $22,300             ...
Band And Zone Pay RangesMid-Management Band   Minimum                                                   Maximum   $34,000 ...
Band And Zone Pay RangesLeadership Band  Minimum                                                      Maximum  $45,000    ...
JOB FAMILIESExample of Job Families:Administrative/Operational Support Band:Job Family title: Records Technicianprofession...
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Broadbanding

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Broadbanding

  1. 1. BROADBANDING Saswat Barpanda evangelist.student@gmail.com
  2. 2. OVERVIEWGOALS/OBJECTIVES• Decentralize compensation management & administration• Reduce the need for reclassification reviews and improve speed of processing• Provide a mechanism to reward employees for skills and competencies outside of annual salary recommendation process• Provide more flexibility in pay for new hires• Attract & retain employees in high skilled areas• Maintain internal equity• Allow for geographic differentials and market competitiveness
  3. 3. Broad Banding• Involves collapsing salary grades into a few broad bands, each with a sizable range – One minimum and one maximum – Range midpoint often not used
  4. 4. Broad Banding (cont.)• Purposes – Provide flexibility to define job responsibilities more broadly – Foster cross-functional growth and development – Ease mergers and acquisitions
  5. 5. Exhibit 8.19: From Grades to Bands
  6. 6. Exhibit 8.20: Contrasts Between Ranges and Bands
  7. 7. Steps Involved in Broad Banding• Set the number of bands• Price the bands: Reference market rates – Reference rates• Flexibility-Control
  8. 8. Exhibit 8.21: Reference Rates Within Bands
  9. 9. What is Broadbanding?5L 1L 60K 30K15L 5L 1L 60K
  10. 10. • In a broadband pay structure, the numbers of salary grades are consolidated into fewer, but broader, pay ranges. In broadbanding, the spread of the pay ranges is wider and there is less overlap with other pay ranges.
  11. 11. BAND DEFINITIONSLEADERSHIP: Implements long-range objectives & links to strategic plans of the organization, has significant management responsibilities and accountabilities, manages multiple levels of staff, and is accountable for long-term success of a unit. Titles include Director, Division Head, etc.MID-MANAGEMENT: Has direct first-line mid-management accountability, executes and interprets policies for the successful operations of an assigned section or functional area of a unit. Titles include Manager, Assistant Director, etc.PROFESSIONAL: Requires professional-level skills necessary to accomplish a wide range of assignments within a functional or specialty area; skills are usually demonstrated by a college degree or equivalent related career experience in a specific discipline. Titles include Accountant, Engineer, etc.ADMINISTRATIVE/OPERATIONAL SUPPORT: Typically task oriented; provides for clerical, analytical, administrative, and operational support needs of a unit under immediate/general supervision. Titles include Administrative/Department Secretary, Records Tech, Carpenter, etc.
  12. 12. BAND SALARY RANGE AND PAY ZONE DEVELOPMENT• Broad salary ranges are created for each band to accommodate the diversity of jobs and the wide range of values the market places on them. Within each band, three to four pay zones may be created to: – Recognize jobs having differing levels of complexity, responsibility and skill – Capture appropriate market differentials between jobs – Ensure that internal equity relationships are preserved – Provide employees with the opportunity for growth within the zone – Guide supervisor to place the employee’s salary in the band based on market
  13. 13. Band And Zone Pay Ranges Administrative/Operational Support Bandnimum Maximum2,486 $47,900 Zone A Minimum Control Maximum $12,486 $19,000 $25,500 Zone B Minimum Control Maximum $16,500 $25,100 $33,600 Zone C Minimum Control Maximum $20,000 $30,400 $40,800 Zone D Minimum Control Maximum $23,500 $35,500 $47,900
  14. 14. Band And Zone Pay RangesProfessional Band Minimum Maximum $22,300 $100,800 Zone A Minimum Control Maximum $22,300 $35,300 $48,400 Zone B Minimum Control Maximum $31,500 $50,000 $68,400 Zone C Minimum Control Maximum $39,000 $61,800 $84,600 Zone D Minimum Control Maximum $46,400 $73,600 $100,800
  15. 15. Band And Zone Pay RangesMid-Management Band Minimum Maximum $34,000 $102,000Zone A Minimum Control Maximum $34,000 $52,400 $70,700 Zone B Minimum Control Maximum $40,500 $64,000 $86,400 Zone C Minimum Control Maximum $49,000 $75,500 $102,000
  16. 16. Band And Zone Pay RangesLeadership Band Minimum Maximum $45,000 $135,000Zone A Minimum Control Maximum $45,000 $69,300 $93,600 Zone B Minimum Control Maximum $55,000 $84,700 $114,300 Zone C Minimum Control Maximum $64,900 $100,000 $135,000
  17. 17. JOB FAMILIESExample of Job Families:Administrative/Operational Support Band:Job Family title: Records Technicianprofessional titles: Accounting Tech I & II, Records Tech I & II, Records Specialist, Audit Budget Tech I & IIProfessional Band:Job Family title: Computer Software Engineerprofessional titles: Engineer I-V

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