When compared to simplified pay bands, traditional salary structures seem as though they could be more limiting for rapid pay growth in a company. As found in an article posted on SHRM.org (Culpepper and associates, 2009), 71% of companies surveyed utilize formal salary ranges for their base pay. This indicates that this is still the primary structure for many companies, however does not indicate whether this is due to a resistance to progression or the belief that the process is better than simplified pay bands. I did not find that this exercise assisted me in making a finite decision in regards to salary structures, but additional research on the matter did clarify some important factors. Firstly, in an article published on Lattice.com What are Salary Bands (Przystanski, 2021), the author identifies positive features of a salary band, such as the improved certainty that is brought to payroll. Additionally, these bands allow room for a company to give unplanned rewards to upcoming employees/talent. Przystanski also makes the point that employees will have a better understanding of the possibilities available to them (i.e., with a range of 50K-70K, an employee who starts at 50K would know what they are able to work towards) as opposed to traditional structures, where the pay increase with a promotion may not be disclosed. As was noted in the exercise, advantages to Salary bands can include: efficiency, competitiveness, alternatives to compensation. There is the risk that this practice can be implemented incorrectly, in which case it could create unexpected consequences, negative employee perception and possibly weaken employment protections.
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