Pay Structure Variations

  1. 5. Summarize pay structure variations.

The principles of pay structure development reviewed previously apply to the majority of established pay structures in companies throughout the United States. Broadbanding and two-tier pay structures represent variations to those pay structure principles.

Broadbanding

The Broadbanding Concept And Its Advantages

 Companies may choose broadbanding to consolidate existing pay grades and ranges into fewer, wider pay grades and broader pay ranges.35 Figure 8-6 illustrates a broadbanding structure and its relationship to traditional pay grades and ranges. Broadbanding represents the organizational trend toward flatter, less hierarchical corporate structures that emphasize teamwork over ...

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