Broadbanding

What is Broadbanding ?

‘Broadbanding’ refers to the concept of developing the employment structure of an organization to have broader salary ranges while making sure that there are fewer designations in the company.

This kind of structure helps delegate more responsibilities to the employees, thus further enhancing their skills. This also means that the employers pay higher while also taking care of the employee training to help them fulfil their responsibilities.

Having a broadband pay structure also helps in being immune to the changing market conditions and places more importance on the designations which are not constrained by a specific skillset. It also emphasizes lateral movement inside a company.

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