In Strategic Human Resource Management (SHR

Broadbanding is a structural pay-design strategy that collapses multiple traditional, narrowly defined salary grades (e.g., 10 to 15 grades) into a few wide pay bands (typically 3 to 5 bands) with wide pay spreads. It is explicitly utilized in conjunction with organizational changes—such as organizational delayering (flattening hierarchies), cross-functional teaming, and agile work redesigns—to facilitate strategy implementation. By weakening strict pay-grade barriers, broadbanding encourages lateral career movements, flexible skill growth, and broader job responsibilities without requiring constant formal job re-evaluations or promotional grade changes.