What type of compensation does broadbanding aim to simplify?

Broadbanding aims to simplify the complexity of job classification and pay structures. This approach consolidates a large number of pay grades into broader salary bands, which helps organizations reduce the intricacies involved in managing various job levels and their corresponding compensation. By creating wider bands, broadbanding allows for greater flexibility in employee compensation, enabling easier adjustments and more streamlined processes for promotion and pay adjustments.

This is particularly beneficial in organizations where job roles are not rigidly defined and overlap exists, as it encourages versatility in how employees can be compensated for their contributions. The result is often a more straightforward approach to managing employee salaries and classifications, making it easier for human resources to navigate and apply consistent compensation practices across the organization.