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

Question

Anna35 [415]

3 years ago

11

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

decision making"

Business

1 answer:

Anna71 [15] · Answer 1 · 2022-06-24T19:31:03+03:00

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.