In recent years, many organizations have chosen to collapse job classes into fewer categories, usually about five. Each of these broader pay categories is called a band. In the case of our university example, one band may include the two instructor positions (which do not require a research component as part of the job), and a second band may include the three professor jobs. (Which require research as well as administrative duties as part of the job). Alternatively, one band may include all five teaching categories. Other bands within the university pay structure could include administrators and staff, for a total of not more than five bands that would include all jobs, from security guards to professors to university president.
Broad banding has become increasingly popular worldwide. For example, a survey distributed to 193 organizations by the Institute of Personnel and Development (IPD) showed that broad banding is the most commonly used pay structure. This same survey indicated that the for implementing broad banding is that it provides more flexibility in rewarding people. Other reasons include the need to reflect changes in organizational structure, to provide a better base for rewarding growth in competence, to devolve more responsibility for pay decisions to mangers, and to provide a batter basis for rewarding career progression.