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1 broad band
"A structure of compensation levels that includes broad ranges of pay per level and is generally defined by grouping jobs with similar aggregate levels of responsibility. Pay for individual jobs is often linked to the external market. Bands are also typically differentiated by the variable compensation awards available at each band. Broad banding eliminates the hierarchy and narrow ranges of graded structures and allows ranges to overlap (for example, the 90th percentile of Band B equals the 10th percentile of Band C). Broad bands do not contain midpoints and generally do not have fixed minimums or maximums (for example, allowing pay that is either below a minimum or above a maximum rate within a band because the external market determines a specific job rate). Companies can store additional reference points for a band, such as a 50th percentile (or Control Point), 25th and 75th percentile, and base variable compensation on one of those points." -
2 pay grade
"A compensation level structure that defines discrete ranges of pay per level, and are generally defined by hierarchical levels of authority within a company. Jobs are typically evaluated by a point system that places them at a grade relative to others within the company. Pay rates for a grade are typically determined by using equivalent groups of jobs in the marketplace as benchmarks. Graded structures are narrower than bands, and are typically discrete (for example, pay ranges do not overlap). Grade pay ranges have a fixed minimum, midpoint (or control point), and maximum reference points. Compa-ratios and range utilization are measures used to analyze an employee’s pay relative to their range. Companies can set additional reference points for a grade, such as 25th and 75th percentile, and base variable compensation on one of those points."
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