The replacement of a salary schedule or pay classsification system that has numerous salary grades or levels with one that has only a few "bands" that each carry wider pay-range spreads.
A pay structure that consolidates a large number of narrower pay grades into fewer broad bands with wider salary ranges.
A pay structure that consolidates a large number of pay grades and salary ranges into much fewer broad bands with relatively wide salary ranges. These ranges typically have 100 percent or more differences between minimum and maximum (e.g. $25,000 to $50,000).
Practice of using fewer pay grades having broader ranges than traditional compensation systems.