Broad banding is a process of combination of number of related jobs into single pay band. Earlier there was a traditional pay structure which contains number of salary structure and difficult to maintain for organizations. But now,broad banding consolidate number of salary grades into fewer bands. This structure divide number of pay band into small bands.
Process of Broad Banding
- Identify the characteristics of Broad Banding : Identify the characteristics of a Broad Banding framework for managing salaries and differentiate it from a more traditional salary structure. There is no thumb rule ,every company has its own broad banding features according to its own rules and regulations. It is different for different organization depends upon organizational policy.
- Reasons to move to Broad Banding: Organization must evaluate the possible reasons for moving from traditional to Broad banding. It may be for the sake of employees, may be hidden agenda, may be organization need and to motivate employees. Manager must discuss the pros and corns of broad Banding in your organization.
- Readiness for Broad banding: It is important for organization to access the readiness of employees for broad banding means accessing the reaction of employees and manager regarding switching from traditional to Broad banding. If they are not ready to shift organization needs to conduct workshop for it.
- Designing a Broad Banding structure: Differentiate in broad grades and career bands and access which would be the best fit for your organization. Here manager must design how much jobs would consider in a single band like 3 to 5, 5to9, etc.
- Managing pay in broad banding environment: Identify primary pay delivery model used in broad banding. Identify organizational factors and other issues which involves in selecting a pay delivery model. Decide Minimum and Maximum pay and how much time is required for moving from one to another pay band Like 2to 3years.
- Managing and controlling salary costs: Here to understand the impact of of broad banding to promotion, internal equity etc and how to manage them. Organization has to develop a method which control salary costs under Broad banding.
- Establish a designing team: Establish a teams which is responsible for upgradation of pay band and how to resolve the grievance.
- Communicating the new program: Communication of Broad banding is necessary , to discuss its benefits with their employees, develop strategies.