BROADBANDING
Main Objectives
q Simplify the classification system
q Provide agencies with greater flexibility to meet changing workforce needs
q Reduce the number of job classes, grade levels, & titles
q Allow for position specific recruitment
Definition of Broad Banding
q Broad banding is an attractive alternative to rigid structured, specialized and hierarchical organizations.
q A strategy for salary structures that consolidate a large number of pay grades.
q An approach to compensation that focuses on performance and market, uses a few, wide salary bands to deliver pay.
How to Implement
l3-8 wide "bands" are created
lBands are established at major breaks
-Differences in work or skill/competency requirements
lPay rates are analyzed to create an overall pay range for each band
Benefits of Broad Banding
qEfficiency
q Flexibility
qDecentralization
qPerformance Focus
Disadvantages of Broad Banding
q Fails to improve the career management process in organizations.
qSalary ranges-control growth for an individual until they acquire new skills for advancement.
2011 MLS Salary Grid
Salary Proposal
Daily salary IMG 0077q Maintain the perception of pay equity-can be more difficult
q Limits promotional opportunities to a higher salary range since there are fewer salary ranges.
Effectiveness in Pay System Criteria
lInternal Equity
lExternal Competitiveness
lEmployee Motivation
lEase-of-administration
lLegality
lBudgetary Issues
Industry Use & Popularity
RParticipative management style
RStrong performance pay orientation
RStrong communications and training capabilities
RService oriented compensation staff
Survey from Fox Lawson & Associates newsletter
îThe average organization that adopted new salary ranges had about 3,100 employees.
î33% of these organizations were City organizations
î33% were county organizations
î11% were colleges
î11% Sate organizations
î11% Special Districts
Reasons to change their state's salary and classification systems:
îState personnel mangers believe states have too many job titles, averaging 1,802 titles
îToo few employees per job title, average of 24 per title
îClassification and compensation systems too old, average of 23 years...