paybands

Paybands, also known as salary bands or pay grades, are a structured system used by organizations to categorize job roles based on their value, complexity, and the market rate for similar positions. This system helps ensure fair and consistent compensation across the workforce. Each payband typically has a defined salary range, with a minimum, midpoint, and maximum salary. Employees are placed within a specific payband based on their job title, responsibilities, and the skills required to perform the role effectively. Progression within a payband is usually achieved through salary increases, which can be linked to performance reviews, tenure, or the acquisition of new skills. The midpoint of the payband often represents the target salary for a fully proficient employee in that role. Organizations use paybands to manage their compensation budget, maintain internal equity, and remain competitive in attracting and retaining talent. They provide a clear framework for salary decisions and career progression, helping employees understand how their compensation is determined and what opportunities exist for growth.