Broadbanding decreases the actual number of pay grades and increases the range in compensation for the remaining pay grades.

Question

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Broadbanding is a compensation strategy that consolidates numerous pay grades into broader bands with fewer pay grades. This approach increases the range of pay within each band while reducing the number of pay grades. This allows organizations to be more flexible in their compensation decisions and better align pay with job responsibilities and skills.

Broadbanding Decreases the Actual Number of Pay Grades and Increases