FEATURES Perils of Paybanding

Government Executive January 1, 2006

Though paybanding might streamline job categories and salary rungs, critics and supporters alike agree it also could result in:

Capping out
High-performing employees at the top of their band receive no raise, while employees with a lesser history of performance are still eligible.
Pigeon-holing
The bands don't offer a clear ladder for career progression.
Budget excess
Agencies with paybanding generally spend more on salaries than the General Schedule.
Unreliable raises
Pay raise pools could become a target for budget cuts in slim years, undermining pay-for-performance's credibility with employees.
De-ranking
In the Defense Department, paybands erase job correlation to military counterparts.

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FEATURES Perils of Paybanding
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