Collapsing many salary grades into a few wide salary bands is known as:
A)red circling.
B)broadbanding.
C)pay ranging.
D)factor comparison.

Question

Quizplus · Accepted Answer

Broadbanding is the process of collapsing many salary grades into a few broad salary bands. This can simplify the pay structure and provides more flexibility in setting salaries within a range. Red circling refers to freezing an employee's salary at a higher level when their position is reclassified or downsized. Pay ranging and factor comparison are methods of determining salary levels in a job evaluation process.

Collapsing Many Salary Grades into a Few Wide Salary Bands