What is a broadband pay structure, and why does it matter for market data?
In a broadband pay structure, the numbers of salary grades are consolidated. Fewer ranges mean that the spread of the ranges is wider and that there is less overlap with other ranges. Broadband pay structures evolved as organizations sought to flatten their hierarchies and move decision-making responsibilities closer to the point of the necessity and knowledge in organizations. In flattened organizations, fewer promotional opportunities exist. Broadband pay structures therefore provide an opportunity for career growth without the necessity for promotion. Broadband pay structures encourage the development of broad employee skills, because nonmanagerial jobs are appropriately valued and skill development is rewarded. These pay structures are not as sensitive to rapidly changing market pricing conditions, so they cost less to administer and manage.
