Level Band

Definition

A hierarchical grouping of positions at similar responsibility and compensation levels within an organization. The corporate equivalent of 'we all make roughly the same, don't discuss numbers.'

Example Usage

The new level band system meant three different job titles at the same position could theoretically have vastly different pay—and definitely did.

Origin

Developed in organizational design and compensation architecture in the 2000s.

Fun Fact

Level bands create the illusion of a ladder while often resulting in no actual advancement—you get promoted to a different role in the same band.

Source: Organizational design and compensation management

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