Broadbanding involves collapsing multiple salary grades into broader pay bands with wider salary ranges. This provides more flexibility in compensation and allows employees' pay to be determined by their skills, competencies, and market factors rather than their specific job title or grade. Under broadbanding, organizations set up bands divided into zones to ensure internal pay equity while allowing room for growth. Job families are also defined to group similar roles within each band.

1. BROADBANDING
Saswat Barpanda
evangelist.student@gmail.com

2. OVERVIEW
GOALS/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. 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. Broad Banding (cont.)
• Purposes
– Provide flexibility to define job responsibilities
more broadly
– Foster cross-functional growth and
development
– Ease mergers and acquisitions

5. Exhibit 8.19: From Grades to Bands

6. Exhibit 8.20: Contrasts Between
Ranges and Bands

7. Steps Involved in Broad Banding
• Set the number of bands
• Price the bands: Reference market rates
– Reference rates
• Flexibility-Control

8. Exhibit 8.21: Reference Rates Within Bands

9. What is Broadbanding?
5L 1L 60K 30K
15L 5L 1L 60K

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. BAND DEFINITIONS
LEADERSHIP: 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. 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. Band And Zone Pay Ranges
Administrative/Operational Support Band
nimum Maximum
2,486 $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. Band And Zone Pay Ranges
Professional 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. Band And Zone Pay Ranges
Mid-Management Band
Minimum Maximum
$34,000 $102,000
Zone 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. Band And Zone Pay Ranges
Leadership Band
Minimum Maximum
$45,000 $135,000
Zone 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. JOB FAMILIES
Example of Job Families:
Administrative/Operational Support Band:
Job Family title: Records Technician
professional titles: Accounting Tech I & II, Records Tech I
& II,
Records Specialist, Audit Budget Tech I & II
Professional Band:
Job Family title: Computer Software Engineer
professional titles: Engineer I-V