Which of the following is an inevitable outcome of broad banding?

A) There are increased labour costs,as everyone is paid more for specific jobs.
B) It decreases the level of flexibility within the pay grades.
C) It tends to lead to "skinny" pay grades.
D) Jobs with significantly different scores end up in the same "band."

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Giselle Flynn · Accepted Answer

Final Answer : D, Explanation :  Broad banding involves collapsing traditional pay grades into fewer and broader bands, which means that jobs with different scores and responsibilities may end up in the same band. This can result in employees with different skill levels and responsibilities being paid the same, which can lead to pay inequities and retention issues. Option A is incorrect as broad banding can lead to a reduction in labour costs by eliminating redundancies in job titles and descriptions. Option B is incorrect as broad banding can increase flexibility by encouraging employee cross-training and facilitating internal mobility. Option C is incorrect as skinny pay grades are opposite of broad banding and involve many, narrow pay grades.

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