Which term describes a salary structure with broad pay bands?

Which term describes a salary structure with broad pay bands?

• A. Broadbanding
• B. Career ladder promotion
• C. Briefings
• D. Business Continuity Plan

Answer: (A)

Broadbanding refers to a salary structure that uses wide pay ranges by consolidating many traditional grades into a few broad bands. This design gives managers flexibility to compensate employees based on skills, responsibilities, and market value rather than rigid steps, allowing easier lateral moves and quicker adjustments to changing roles. This makes it the best fit for describing a system with broad pay bands. In contrast, a career ladder promotes narrow, stepwise progression with limited jump between levels, which isn’t about wide ranges. Briefings are meetings, not compensation structures, and a Business Continuity Plan is about maintaining operations during disruptions, not pay design.

Broadbanding refers to a salary structure that uses wide pay ranges by consolidating many traditional grades into a few broad bands. This design gives managers flexibility to compensate employees based on skills, responsibilities, and market value rather than rigid steps, allowing easier lateral moves and quicker adjustments to changing roles.

This makes it the best fit for describing a system with broad pay bands. In contrast, a career ladder promotes narrow, stepwise progression with limited jump between levels, which isn’t about wide ranges. Briefings are meetings, not compensation structures, and a Business Continuity Plan is about maintaining operations during disruptions, not pay design.