Definition
A compensation strategy that consolidates multiple narrow pay grades into fewer, wider salary ranges. Gives companies more flexibility to pay people whatever they want while claiming they follow a structure.
Example Usage
With our new broadbanding system, entry-level and mid-level roles are in the same band, which definitely won't cause any resentment.
Origin
Popularized in the 1990s as an alternative to traditional pay grade systems
Fun Fact
Broadbanding reduces administrative burden but often increases pay inequity because managers have too much discretion.
Source: Compensation strategy and pay structure terminology
Related Terms
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See “broadbanding” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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