Characteristics of the pay broadbanding model of the pay broadbanding system

Compared with the traditional hierarchical pay model, the pay broadband model has the following characteristics:

Breaks down the hierarchical concept maintained and reinforced by the traditional pay structure, reduces the hierarchical differences between jobs, and is conducive to the improvement of efficiency as well as to the creation of a learning corporate culture, while at the same time helping the company to maintain the flexibility of its own organizational structure and its ability to adapt effectively to the external environment.

Guiding employees to emphasize the growth of personal skills and the improvement of their abilities. Under the traditional hierarchical salary structure, the salary increase of employees often depends on the promotion of individual positions rather than the improvement of ability, because even if the ability has reached a higher level, but there is no job vacancy in the enterprise, employees still cannot get higher salaries. But in the pay broadband system design, even in the same pay broadband, the enterprise for the staff to provide the salary change range may also than the staff in the original five or even more pay grade may get the salary range is bigger, so that the staff do not need to pay for the salary growth and go to catty job promotion and other aspects of the problem, and as long as pay attention to the development of the enterprise needs those skills and abilities can get the corresponding compensation. can get the appropriate remuneration.

Facilitates job rotation and fosters cross-functional growth and development in those new organizations. In a traditional hierarchical compensation structure, an employee's pay level is strictly tied to the position he or she holds. Since a change in the same job level does not bring about a change in pay level, but such a change makes it necessary for employees to learn new things, thus making the work more difficult and more strenuous, employees are reluctant to accept job rotation at the same level. In contrast, under the pay broadbanding system, since the level of pay is determined by competence rather than position, employees are happy to enhance their competence through job rotation in the relevant functional areas as a way of obtaining greater rewards.

It is conducive to the enhancement of the core competitive advantage of the enterprise and the overall performance of the enterprise. In the compensation broadband system, superiors have greater decision-making power over the compensation of lower-level employees, thus enhancing organizational flexibility and the emergence of innovative ideas, and helping to improve the ability of enterprises to adapt to the external environment.