The Many Facets of Compensation An alternate structure, the fast emerging use of broadbands, accom- modates today's flatter organizational structure by eliminating narrowly defined jobs. Broadbanding emphasizes skills development and gives em- ployees more freedom to move laterally or up and down within a pay grade. An employee desiring to downshift to a less stressful position, for instance, could do that without suffering a drastic pay cut. Broadbanding recognizes that 21 st century employees often perform not one but several different jobs. 35 Under broadbanding, pay decisions rest largely with managers--and the performance appraisal can be key. Entry-level employees with mini- mal qualifications begin at the first stop of their range. But rather than annual increases, advancement depends on performance. All raises become individually-determined merit raises. On the downside, managerial dis- cretion opens possibilities of favoritism and abuse of the broadbanding structure. 36 Incentives...or Disincentives?