Refer to Scenario 9.1. What type of pay system is D&D Inc. currently using to compensate its employees?

A) broadbanding
B) competency-based
C) red circle rates
D) piece rate

Broadbanding

A method of salary structure that consolidates a large number of pay grades into fewer broad bands to provide greater flexibility in employee movement and compensation.

Red Circle Rates

Pay rates that are higher than the typical range for a job or position, often given to retain employees with critical skills or experience.

Piece Rate

A payment method where workers are compensated based on the amount of work completed or products produced, rather than receiving a fixed hourly wage.