Ipd Survey: Study of Broad-Banded and Job Family Pay Structures
January 2000
IPD surveyreport
11
Study of broad-banded and job family pay structures
INSTITUTE OF PERSONNEL AND DEVELOPMENT
Study of broad-banded and job family pay structures
Study of broad-banded and job family pay structures
A survey of developments in broad-banded and job family pay structures was conducted by the Institute of Personnel and Development in October-December 1999. Although such structures are not new (they first emerged in the late 1980s) they have become increasingly popular in recent years. Yet there are still uncertainties about how they work, indeed if they work. The objectives of the study were to obtain information on how and why such structures are being adopted. The research findings are based on a questionnaire, which was completed by 193 respondents, and 15 case study interviews, held primarily with pay and benefits managers.
As might be expected, broad-banded structures with three or less bands are most common for senior executives, although a good proportion of organisations (40%) have this type of structure for managers and professional staff. At the other end of the scale only 8 per cent of managerial/ professional staff and 17 per cent of other staff are in a narrow-graded structure. This indicates that such structures, which were typical in the 1970s and 1980s, are now much less popular. Broad-banded structures (five or less bands) are now the most common form (60 per cent for managers, professional and other staff). Just under half of the broadbanded structures (47 per cent) have been in place for at least three years. Width of grades/bands The information provided by respondents on the width of grades (the pay span in percentage terms) in their structures is summarised in Table 2. This shows that nearly half of survey participants (48%) have structures with bands of 50% or more.
Broad-banded pay structures
Introduction There is no generally accepted definition of what a broad-banded structure is, except
IPD surveyreport
11
Study of broad-banded and job family pay structures
INSTITUTE OF PERSONNEL AND DEVELOPMENT
Study of broad-banded and job family pay structures
Study of broad-banded and job family pay structures
A survey of developments in broad-banded and job family pay structures was conducted by the Institute of Personnel and Development in October-December 1999. Although such structures are not new (they first emerged in the late 1980s) they have become increasingly popular in recent years. Yet there are still uncertainties about how they work, indeed if they work. The objectives of the study were to obtain information on how and why such structures are being adopted. The research findings are based on a questionnaire, which was completed by 193 respondents, and 15 case study interviews, held primarily with pay and benefits managers.
As might be expected, broad-banded structures with three or less bands are most common for senior executives, although a good proportion of organisations (40%) have this type of structure for managers and professional staff. At the other end of the scale only 8 per cent of managerial/ professional staff and 17 per cent of other staff are in a narrow-graded structure. This indicates that such structures, which were typical in the 1970s and 1980s, are now much less popular. Broad-banded structures (five or less bands) are now the most common form (60 per cent for managers, professional and other staff). Just under half of the broadbanded structures (47 per cent) have been in place for at least three years. Width of grades/bands The information provided by respondents on the width of grades (the pay span in percentage terms) in their structures is summarised in Table 2. This shows that nearly half of survey participants (48%) have structures with bands of 50% or more.
Broad-banded pay structures
Introduction There is no generally accepted definition of what a broad-banded structure is, except