Broadbanding

What is Broadbanding?

Broadbanding is a compensation structure that consolidates a large number of narrow pay grades into a smaller number of wide salary bands. Each band covers a broader range of jobs and salary levels, giving managers greater flexibility to reward performance, recognise skill development, and facilitate lateral career moves without requiring a formal promotion. Broadbanding supports flatter organisational structures and encourages employees to develop a wider range of competencies. However, it requires strong managerial judgement and clear guidelines to ensure pay decisions remain equitable and consistent.