Broadbanding in job pricing is characterized by which feature?

Broadbanding in job pricing is defined by the practice of creating wider pay ranges for fewer job classifications. This approach allows organizations to consolidate multiple job grades or titles into broader categories, simplifying their pay structure. By establishing fewer classifications with wider ranges, it enables greater flexibility in salary management, accommodating a variety of roles and responsibilities within a more streamlined framework.

This method often supports a more holistic view of compensation, allowing for greater differentiation in pay based on individual contributions, market conditions, and organizational needs. It also provides employees with the potential for increased salary growth within their job category without necessitating a change in job title or classification, thereby fostering retention and engagement for high-performing employees.

In contrast, narrowed pay ranges would restrict salary differentiation; fixed salary increase percentages could limit flexibility in recognizing individual performance; and increasing payroll specifically for top performers may not align with the broader strategic framework that broadbanding seeks to implement.