• Human Capital Efficiency

Reward Issues; Are 6 Broad Job Based Bands the Right Solution?

Most organisations use or have some form of job based grade or band structure. But the demands on the structure are often diverse.

From an organisational perspective, the requirement is to maintain a healthy & dynamic organisation by supporting; clarity of accountability, devolved accountability, & improved speed of decision making. And for the managerial population it should support & promote a cost effective management structure. To achieve these objectives, a broad band structure is most appropriate.

For the employee, the grade or band structure provides an understanding of where they fit, their future opportunity & what they need to do to progress. Most organisations often use the structure to manage pay & pay progression. To achieve these objectives, a narrow grade structure might be attractive.

The question is how to balance the organisational need for the healthy & dynamic organisation and individual need for career management & progression.

At Human Capital Efficiency, we believe a broad band structure is the right answer and the structure probably has between 6 & 10 bands - but this depends on the population & includes; where the structure starts & where it finishes.

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