Journal 4: Pay Structure
A pay structure is critical because it enables organizations to consistently pay workers for what they are worth and their services to a company. In addition, a pay structure provides a framework for career growth and pay progression. In this line, the firm that I previously worked for used a broadbanding pay structure that was fair to employees because it allowed horizontal career advancement and a stable pay increase structure.
The primary advantage of the broadbanding pay structure is that it allowed career growth among the organization’s workforce. In line with the precepts of broadbanding, the company’s pay structure was designed to encourage horizontal movement within job positions, thus, facilitating more skill acquisition (Mathis, Jackson, & Valentine, 2015, pg. 156). For instance, when I joined the organization, my job was limited to data entry. However, after working for six months as a data entry clerk, I was promoted to the position of a cashier. Working as a cashier was increasingly fulfilling because it not only enhanced my skills and experience, but also increased my job satisfaction.
Similarly, the pay structure was fair because it offered a defined pay increase framework. According to Wilkinson and Johnstone (2016, pg. 33), broadbanding allows workers to progress their pay based on their acquisition of additional competencies, taking on extra job responsibilities, and evaluation of their performance. To this end, my promotion to a cashier was coupled with a commensurate increase in my salary within my pay grade. However, the pay structure would have been more desirable if increments in income could be done immediately following one’s promotion or assumption of extra responsibilities.
In summation, the broadbanding pay structure used in the company that I previously worked for was fair as it allowed career advancement and pay increase. Employees are always concerned about their growth in the workplace, and an effective pay structure considers this aspect. Therefore, the broadbanding pay framework was desirable because it ensured overall satisfaction among employees.
References
Mathis, R. L., Jackson, J. H., & Valentine, S. R. (2015). Human resource management: Essential perspectives. Boston, MA: Cengage Learning. https://books.google.co.ke/books?id=7jN-BAAAQBAJ&pg=PA156&dq=Broadbanding+and+pay+grades&hl=en&sa=X&ved=0ahUKEwjY3cWDhMTpAhUGE8AKHUlqCNcQ6AEIaDAH#v=onepage&q=Broadbanding%20and%20pay%20grades&f=false
Wilkinson, A., & Johnstone, S. (2016). Encyclopedia of human resource management. Cheltenham, UK: Edward Elgar Publishing. https://books.google.co.ke/books?id=oopeCwAAQBAJ&printsec=frontcover&dq=Broadbanding+and+pay+grades&hl=en&sa=X&ved=0ahUKEwjbs6bfhcTpAhVNZcAKHVHBBXM4HhDoAQhMMAU#v=snippet&q=Broadbanding%20&f=false