What is the primary advantage of broadbanding in compensation systems?

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The primary advantage of broadbanding in compensation systems is that it makes pay ranges more consistent with organizational flattening. As organizations evolve and adopt flatter structures—where there are fewer hierarchical levels—broadbanding allows for a consolidation of pay grades into wider band ranges. This flexibility helps to simplify the compensation system while still aligning with the overall strategy of reducing levels of management and promoting a more collaborative work environment.

By using broader salary ranges, organizations can more easily reward employees based on their skills and contributions rather than strictly adhering to narrow pay grades. This aligns well with the trend toward flatter hierarchies, where roles may become less defined and more collaborative, facilitating a more effective compensation strategy that reflects current organizational dynamics and employees' evolving roles.

The other options don't encapsulate the essence of broadbanding’s role in response to organizational changes effectively, making them less relevant in the context of this question.

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