Pay structure of an organisation defines what an individual can do and what he is paid based on its value effectiveness in the business.
Banks' pay structures are quite different from each other depending on their respective strategy.
Most of the banks developed their pay structures based on scale which is quite an old system except some banks which already implemented the broad banding pay structure.
Traditional salary structures are organised with numerous layers and pay grades with a small difference between two ranges. Broad banding salary structures are more flexible.
The broad banding pay structure comprise wide salary ranges whereas the scale-based pay structure is different. Talent hunting from the banking industry is quite easier and easily negotiable through the broad banding structure whereas the scale-based pay structure is not.
Yearly increment, promotion, adjustment of COLA (cost of living adjustment) all are easily adjustable in the broad banding pay structure but scale-based pay structure cannot adjust the COLA and other basic needs of living of the employees as well.
The scale-based pay structure cannot incorporate the performance-based management system effectively and efficiently whereas the broad banding pay structure can easily measure the performance of an employee which is effective and efficient.
Most of the HR professionals in the industry resist change of the scale-based pay structure to the broad banding pay structure because they have neither clear knowledge about it nor they are able to make the management and directors understand the benefits of it for the employees and organisations. The broad banding pay structure gives a win-win situation for both employers and employees whereas the scale-based pay structure cannot do it.
Last but not the least, the broad banding pay structure helps raise your living standard whereas the traditional salary structure makes your living tougher.
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