What compensation strategy does Fresh Munchables utilize to facilitate career changes without reducing employee pay?

Broadbanding is the correct compensation strategy used by Fresh Munchables to facilitate career changes without reducing employee pay. This approach condenses multiple job grades into fewer broad bands, allowing for greater flexibility in how employees can advance and change roles within the organization. As employees transition into new positions or take on new responsibilities, broadbanding can enable them to maintain their existing salary levels, even when moving to roles that may traditionally have a lower pay grade. This not only helps retain talent but also encourages employees to pursue career development without the fear of a pay cut that might accompany a position change.

In contrast, job leveling typically focuses on clearly defined grade levels for positions, which may impose rigid salary structures that do not accommodate lateral career movements or changes in responsibilities without potential pay loss. Competency-based pay emphasizes rewarding individuals based on their skills and competencies, which may not directly address the challenges of career transitions without salary impact. A fixed salary structure involves predetermined pay rates that do not allow for significant flexibility, potentially leading to complications if employees wish to shift into varying roles without experiencing pay reductions.