In a brief essay, compare and contrast the use of pay ranges with broadbanding

Indicate whether this statement is true or false.

Answer: There are several reasons to use pay ranges for each pay grade. First, it lets the employer take a more flexible stance in the labor market. For example, it makes it easier to attract experienced, higher-paid employees into a pay grade at the top of the range, since the starting salary for the pay grade's lowest step may be too low to attract them. Pay ranges also let companies provide for performance differences between employees within the same grade or between those with different seniorities. Companies create broadbands for several reasons. The basic advantage is that it injects greater flexibility into employee assignments. It is especially sensible where firms organize into self-managing teams. However, broadbanding can be unsettling, particularly for new employees. "There's a sense of permanence in the set of job responsibilities often attached to job titles," one manager says. That sense of permanence isn't nearly as clear when employees move frequently from project to project and job to job.