4 ms·

I've been working as a contractor for more than the past 10 years, and I'd say salary banding is one of the primary reasons I've been able to remain employed 10

I've been working as a contractor for more than the past 10 years, and I'd say salary banding is one of the primary reasons I've been able to remain employed 100% of the time. A big company will be able to get some portion of the labor it requires within the bands they set out. But the more in demand the skills they're seeking are, the less likely they'll be able to convince people to work for the band rates they've set. When they encounter those situations, their only options are to hire contractors at even more expensive rates, or to not get the work done. There's plenty of reasons why contingent labor might appeal to a company, but hilariously inefficient salary banding practices seems like one of the more common ones to me.

sokoloff 6y ago
Or you just pay certain distinguished people well outside the typical band (or, equivalently, create a “track of one”, both of which are a version of CP). Bands are not the problem. Mindless, extremely rigid adherence to bands is the problem.
- AmericanChopper 6y ago
  That would be one approach, but I think most big organisations would presume that it would simply spiral out of control, and the bands will end up achieving nothing. From a management perspective, if you’re trying to resource a team or a project, hiring a contractor at a high contracting rate typically works out to be the path of least resistance.