Competency-Based Paying: Broadbanding

Competency-based Approach > Forum

In the forum section you will find recent discussions within this knowledge area.

Competency-Based Paying: Broadbanding
Anneke Zwart, Student (University), Netherlands, Moderator
A common paying structure is competency based: Broadbanding. What is Broadbanding exactly?
Broadbanding is a pay strategy that consolidates the many distinct pay grades of traditional pay structures into only few “broad bands”. Due to only few pay grades in the pay structure, a person’s payment cannot only be increased by job promotion (as is the case in traditional pay structures) but also by improved skills and competencies. Salary is determined by the value a worker delivers relative to the value of the position to the company Thus broadbanding blends skills, performance, competencies, the companies’ goals and pay grades.
Source: Tucker, S.A., K.M. Cofsky (1994) “Competency-Based Pay on a Banding Platform” ACA Journal...Sign up

Special Interest Group Leader

Interested? Sign up for free.

Competency-based Approach
Best Practices
Expert Tips



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.0 - Last updated: 24-4-2019. All names ™ of their owners.