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BROADBANDING



         Saswat Barpanda
   evangelist.student@gmail.com
OVERVIEW
GOALS/OBJECTIVES
• Decentralize compensation management &
  administration
• Reduce the need for reclassification reviews and
  improve speed of processing
• Provide a mechanism to reward employees for
  skills and competencies outside of annual salary
  recommendation process
• Provide more flexibility in pay for new hires
• Attract & retain employees in high skilled areas
• Maintain internal equity
• Allow for geographic differentials and market
  competitiveness
Broad Banding
• Involves collapsing salary grades into a few
  broad bands, each with a sizable range
  – One minimum and one maximum
  – Range midpoint often not used
Broad Banding (cont.)
• Purposes
  – Provide flexibility to define job responsibilities
    more broadly
  – Foster cross-functional growth and
    development
  – Ease mergers and acquisitions
Exhibit 8.19: From Grades to Bands
Exhibit 8.20: Contrasts Between
       Ranges and Bands
Steps Involved in Broad Banding
• Set the number of bands

• Price the bands: Reference market rates
   – Reference rates

• Flexibility-Control
Exhibit 8.21: Reference Rates Within Bands
What is Broadbanding?



5L    1L   60K   30K
15L   5L   1L    60K
• In a broadband pay structure, the numbers
  of salary grades are consolidated into fewer,
  but broader, pay ranges. In broadbanding,
  the spread of the pay ranges is wider and
  there is less overlap with other pay ranges.
BAND DEFINITIONS
LEADERSHIP: Implements long-range objectives & links to strategic plans of the
  organization, has significant management responsibilities and accountabilities,
  manages multiple levels of staff, and is accountable for long-term success of a unit.
  Titles include Director, Division Head, etc.

MID-MANAGEMENT: Has direct first-line mid-management accountability,
  executes and interprets policies for the successful operations of an assigned section
  or functional area of a unit. Titles include Manager, Assistant Director, etc.

PROFESSIONAL: Requires professional-level skills necessary to accomplish a wide
  range of assignments within a functional or specialty area; skills are usually
  demonstrated by a college degree or equivalent related career experience in a
  specific discipline. Titles include Accountant, Engineer, etc.

ADMINISTRATIVE/OPERATIONAL SUPPORT: Typically task oriented;
  provides for clerical, analytical, administrative, and operational support needs of a
  unit under immediate/general supervision. Titles include
  Administrative/Department Secretary, Records Tech, Carpenter, etc.
BAND SALARY RANGE AND PAY
       ZONE DEVELOPMENT
• Broad salary ranges are created for each band to
  accommodate the diversity of jobs and the wide range
  of values the market places on them.
  Within each band, three to four pay zones may be created
  to:
   – Recognize jobs having differing levels of complexity,
      responsibility and skill
   – Capture appropriate market differentials between jobs
   – Ensure that internal equity relationships are preserved
   – Provide employees with the opportunity for growth
      within the zone
   – Guide supervisor to place the employee’s salary in the
      band based on market
Band And Zone Pay Ranges
        Administrative/Operational Support Band

nimum                                                           Maximum
2,486                                                           $47,900
        Zone A    Minimum       Control    Maximum
                $12,486     $19,000  $25,500
           Zone B       Minimum     Control  Maximum
                             $16,500      $25,100     $33,600
                 Zone C          Minimum        Control         Maximum
                                 $20,000        $30,400         $40,800

                    Zone D                Minimum         Control         Maximum
                                           $23,500         $35,500         $47,900
Band And Zone Pay Ranges
Professional Band
         Minimum                                 Maximum
     $22,300                                         $100,800
   Zone A Minimum      Control   Maximum
            $22,300   $35,300   $48,400
          Zone B Minimum     Control  Maximum
                    $31,500  $50,000   $68,400
              Zone C Minimum     Control   Maximum
                       $39,000    $61,800   $84,600
             Zone D   Minimum        Control           Maximum
                      $46,400        $73,600          $100,800
Band And Zone Pay Ranges
Mid-Management Band
   Minimum                                                   Maximum
   $34,000                                                  $102,000

Zone A    Minimum       Control     Maximum
        $34,000    $52,400         $70,700
   Zone B       Minimum           Control  Maximum
                    $40,500       $64,000   $86,400
         Zone C         Minimum         Control       Maximum
                        $49,000         $75,500       $102,000
Band And Zone Pay Ranges
Leadership Band
  Minimum                                                      Maximum
  $45,000                                                     $135,000

Zone A     Minimum     Control   Maximum
        $45,000     $69,300  $93,600
   Zone B       Minimum     Control  Maximum
                  $55,000     $84,700   $114,300
         Zone C             Minimum     Control    Maximum
                            $64,900     $100,000   $135,000
JOB FAMILIES
Example of Job Families:

Administrative/Operational Support Band:
Job Family title: Records Technician
professional titles: Accounting Tech I & II, Records Tech I
  & II,
 Records Specialist, Audit Budget Tech I & II

Professional Band:
Job Family title: Computer Software Engineer
professional titles: Engineer I-V

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Broadbanding

  • 1. BROADBANDING Saswat Barpanda evangelist.student@gmail.com
  • 2. OVERVIEW GOALS/OBJECTIVES • Decentralize compensation management & administration • Reduce the need for reclassification reviews and improve speed of processing • Provide a mechanism to reward employees for skills and competencies outside of annual salary recommendation process • Provide more flexibility in pay for new hires • Attract & retain employees in high skilled areas • Maintain internal equity • Allow for geographic differentials and market competitiveness
  • 3. Broad Banding • Involves collapsing salary grades into a few broad bands, each with a sizable range – One minimum and one maximum – Range midpoint often not used
  • 4. Broad Banding (cont.) • Purposes – Provide flexibility to define job responsibilities more broadly – Foster cross-functional growth and development – Ease mergers and acquisitions
  • 5. Exhibit 8.19: From Grades to Bands
  • 6. Exhibit 8.20: Contrasts Between Ranges and Bands
  • 7. Steps Involved in Broad Banding • Set the number of bands • Price the bands: Reference market rates – Reference rates • Flexibility-Control
  • 8. Exhibit 8.21: Reference Rates Within Bands
  • 9. What is Broadbanding? 5L 1L 60K 30K 15L 5L 1L 60K
  • 10. • In a broadband pay structure, the numbers of salary grades are consolidated into fewer, but broader, pay ranges. In broadbanding, the spread of the pay ranges is wider and there is less overlap with other pay ranges.
  • 11. BAND DEFINITIONS LEADERSHIP: Implements long-range objectives & links to strategic plans of the organization, has significant management responsibilities and accountabilities, manages multiple levels of staff, and is accountable for long-term success of a unit. Titles include Director, Division Head, etc. MID-MANAGEMENT: Has direct first-line mid-management accountability, executes and interprets policies for the successful operations of an assigned section or functional area of a unit. Titles include Manager, Assistant Director, etc. PROFESSIONAL: Requires professional-level skills necessary to accomplish a wide range of assignments within a functional or specialty area; skills are usually demonstrated by a college degree or equivalent related career experience in a specific discipline. Titles include Accountant, Engineer, etc. ADMINISTRATIVE/OPERATIONAL SUPPORT: Typically task oriented; provides for clerical, analytical, administrative, and operational support needs of a unit under immediate/general supervision. Titles include Administrative/Department Secretary, Records Tech, Carpenter, etc.
  • 12. BAND SALARY RANGE AND PAY ZONE DEVELOPMENT • Broad salary ranges are created for each band to accommodate the diversity of jobs and the wide range of values the market places on them. Within each band, three to four pay zones may be created to: – Recognize jobs having differing levels of complexity, responsibility and skill – Capture appropriate market differentials between jobs – Ensure that internal equity relationships are preserved – Provide employees with the opportunity for growth within the zone – Guide supervisor to place the employee’s salary in the band based on market
  • 13. Band And Zone Pay Ranges Administrative/Operational Support Band nimum Maximum 2,486 $47,900 Zone A Minimum Control Maximum $12,486 $19,000 $25,500 Zone B Minimum Control Maximum $16,500 $25,100 $33,600 Zone C Minimum Control Maximum $20,000 $30,400 $40,800 Zone D Minimum Control Maximum $23,500 $35,500 $47,900
  • 14. Band And Zone Pay Ranges Professional Band Minimum Maximum $22,300 $100,800 Zone A Minimum Control Maximum $22,300 $35,300 $48,400 Zone B Minimum Control Maximum $31,500 $50,000 $68,400 Zone C Minimum Control Maximum $39,000 $61,800 $84,600 Zone D Minimum Control Maximum $46,400 $73,600 $100,800
  • 15. Band And Zone Pay Ranges Mid-Management Band Minimum Maximum $34,000 $102,000 Zone A Minimum Control Maximum $34,000 $52,400 $70,700 Zone B Minimum Control Maximum $40,500 $64,000 $86,400 Zone C Minimum Control Maximum $49,000 $75,500 $102,000
  • 16. Band And Zone Pay Ranges Leadership Band Minimum Maximum $45,000 $135,000 Zone A Minimum Control Maximum $45,000 $69,300 $93,600 Zone B Minimum Control Maximum $55,000 $84,700 $114,300 Zone C Minimum Control Maximum $64,900 $100,000 $135,000
  • 17. JOB FAMILIES Example of Job Families: Administrative/Operational Support Band: Job Family title: Records Technician professional titles: Accounting Tech I & II, Records Tech I & II, Records Specialist, Audit Budget Tech I & II Professional Band: Job Family title: Computer Software Engineer professional titles: Engineer I-V

Notes de l'éditeur

  1. See Exhibit 8.19, page 267
  2. Less administration, not job specific, function oriented, shared competencies, no hierarchy