Each post should be at least 175 words long. So 350 in all.

Each post should be at least 175 words long. So 350 in all. This is a class discussion post. You will respond to two of these student posts whether you agree or disagree and state why. Also, state facts. Be constructive and professional.

Try adding more personal examples, analyses, or information from sources you find in our library. Remember, too, that you must include at least two citations.

1)Good evening,

The use of the traditional salary structure I feel has more of transparent approach. The traditional structure provides a hierarchal system which can allow employees to be promoted between pay grades. In the traditional structure there are more pay grades and it can prevent employees from hitting the maximum salary for that position to fast which does help with retention. This offers the employees the opportunity to grow with the company. With the simplified pay band is does provide a step system which allows the employee to have an understanding about the pay differences of roles that may be similar.

This can also assist with eliminating gender pay because it can identify those employees that may be under or over paid. Both of these are beneficial to the organization but the traditional structure I feel is a better option because employees like the feeling of growth when working with the organization.

The exercise allowed for me to understand how working on a pay structure could help with gender pay inequality and knowing what structure will work best to achieve that goal.

The advantages of a salary band is that can help with ensuring that pay is equitable, it can provide transparency which will increase the trust of the employees. The downside this process requires the need to be updated on a regular basis, and it can be difficult for compensation packages to be created.

What are salary bands https://www.hibob.com/hr-glossary

2)I think the traditional salary structure has too many pay grades, it is harder for an employee to work towards his or her maximum salary over time, instead of making optimum salary level. I can imagine this type of salary structure will result in increased staff turnover or employees will become less productive, because harder you work, the longer it takes for you to make the salary you desire, because there is little to no room for salary increases

Now, simplified pay bands are implemented more as a pay-for-performance structure, this helps managers base salaries and merit increases on the employee’s position and performance. As a company, I could see the benefits of the simplified pay bands because of their advantages to include a boost in the recruiting talent, employee performance, and the development of a more open payment system.

After listening to the exercise, I can see the advantages of both the traditional salary structure and that of the simplified pay bands. I do believe that the choice to use one of the other depends on the budget and operational aspects of a particular company. For example, what I now know is that companies with a tighter budget may not have the same opportunities for financial growth than say a larger company. However, smaller companies may be able to promote their employees quicker than larger companies.

Salary bands offer a structured framework for compensation, promote fairness, and clarity in pay decisions. They are reported to be crucial for maintaining pay equity, attracting talent, and helping companies manage compensation budgets more effectively. As for disadvantages, according to the SalaryCube Editorial Team (2024), salary bands can introduce rigidity, which can potentially limit a company or employer’s ability to quickly adapt to individual performance and market dynamics. Lastly, one primary disadvantage is potential inflexibility, which can affect a company’s ability to respond quickly to market demands and employee merits.

Reference:

(2023). Types of pay structures-which is the best for my organization. Mercer.

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