"what creates the basis for a simpler compensation system that de-emphasizes structure and places greater importance on flexible decision making"

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02-07-2017
Business

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"what creates the basis for a simpler compensation system that de-emphasizes structure and places greater importance on flexible decision making"

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meerkat18 meerkat18 · Answer 1 · 2017-07-15T05:15:54+02:00

The answer to this question is “Broad Banding”. This is a term used to having extremely wide salary bands. When a typical salary band has 40% difference in pay between its minimum and maximum, broad banding can go as much as 100% difference. Due to this, there is a collapse in demand for vertical promotions since salary grade for one position is divided into few wide bands. This promotes lateral development of employees.