Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Ähnlich wie Broad banding - compensation management - Manu Melwin Joy
Ähnlich wie Broad banding - compensation management - Manu Melwin Joy (20)
Mehr von manumelwin
Mehr von manumelwin (20)
Kürzlich hochgeladen
Kürzlich hochgeladen (20)
Broad banding - compensation management - Manu Melwin Joy
- 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
- 3. Broad banding • Broad banding is a job grading structure that falls between using spot salaries vs. many job grades to determine what to pay particular positions and incumbents within those positions.
- 4. Broad banding • While broadbanding gives the organization using it some broad job classifications, it does not have as many distinct job grades as traditional salary structures do
- 5. Broad banding • Thus, broadbanding reduces the emphasis on ‘status’ or hierarchy and places more of an emphasis on lateral job movement within the company.
- 6. Broad banding • In a broadbanding structure an employee can be more easily rewarded for lateral movement or skills development, whereas in traditional multiple grade salary structures pay progression happens primarily via job promotion. In this way, broadbanding is a more flexible pay system.
- 7. Broad banding • This flexibility, however, can lead to internal pay relativity problems as there isn’t as much control over salary progression as there would be within a traditional multi- level grading structure.
- 9. Zones in Broad band structure
- 10. Broad banding • For a suitable organization in the right cultural setting, broadbanding can do the following: – Reward performance more efficiently – as the pay ranges are wide, the company has the flexibility to reward a star performer, even when they aren’t getting promoted.
- 11. Broad banding • For a suitable organization in the right cultural setting, broadbanding can do the following: – Take the emphasis off of job evaluation – because the number of levels have been reduced, job evaluation can be streamlined as there aren’t as many distinct grades that need to be considered when slotting a job into the structure.
- 12. Broad banding • For a suitable organization in the right cultural setting, broadbanding can do the following: – Manage a flexible/mobile workforce – for companies that have staffing needs that change frequently or are difficult to predict, or work within a business environment that is in flux, broadbanding offers a program that is easier to maintain than a traditional system with many distinct levels.
- 13. Broad banding • One concern noted by companies that have implemented broadbanding is that compensation costs may go up. This is due to the wider than normal band taking away that more gradated top end control on salary levels.
- 14. Broad banding • This can be effectively managed through the use of market data, in order to help managers to validate their pay decisions for a particular employee to the external market before proceeding to give higher than normal pay increases.
- 15. Broad banding • Broadbanding, like other grading systems, relies on the buy-in of all key stakeholders including the business managers, HR managers, and employees.
- 16. Broad banding • Tailored communication to each of these groups will go a long way towards ensuring the successful implementation of a broadbanding program.