Broad bands, with their greater spread between pay minimums and maximums, can lead to weaker budgetary controls and rising labor costs.

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In response to the problems caused by job-based pay structures, some organizations are delayering, or reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases. These broader groupings of jobs are also known as broad bands. Broad bands, with their greater spread between pay minimums and maximums, can lead to weaker budgetary controls and rising labor costs.

Broad Bands, with Their Greater Spread Between Pay Minimums and Maximums