Reward excellence everywhere with overlapping pay

Hard - Requires significant effort Recommended

A regional bank struggled to retain its best tellers. Promotion to branch manager meant a 30% pay cut unless they reached a certain tenure. Tellers began job-hunting instead of focusing on customers.

Their new regional executive, Lara, proposed broadbanding: she rearranged the pay bands so that a top teller’s salary overlapped the beginning of the supervisor band. She then defined mastery metrics—like “under-five-minute service for 95% of customers” and “zero transaction errors.” High-performing tellers could stay in that role, earn up to 20% more than before, and still be recognized as top experts.

Within months, retention of star tellers soared by 40%, and customer satisfaction jumped. Tellers who once chased promotions instead doubled down on deepening their expertise. For those still craving leadership, Lara made it clear that branch manager roles began at a higher pay band but came with new performance criteria.

This shift showed every team member that excellence in any role is just as respected as climbing the ladder. By rewarding mastery everywhere, Lara built a workforce focused on deep expertise, not just titles.

Next time you review your salary structure, redraw each role’s pay range so they overlap. Set clear mastery metrics for the top half of every band and explain how hitting those goals leads to higher pay without a title change. Try rolling out this idea in your next salary review cycle.

What You'll Achieve

Internally, you’ll foster a culture that values deep expertise and reduces turnover. Externally, you’ll retain top performers and improve customer or project outcomes.

Level up pay to honor mastery

1

List current pay bands

Jot down the salary ranges for each role on your team, from entry to senior.

2

Create overlap zones

Adjust the bands so the top quartile of one role overlaps the bottom quartile of the next higher role.

3

Define mastery metrics

For each band, set clear excellence criteria—like “top 5% customer satisfaction” or “25% faster turnaround.”

4

Communicate new structure

Announce the overlapping bands and explain how mastering a role can unlock higher pay within it, not just via promotion.

Reflection Questions

  • Which roles on your team lack a clear path to higher pay?
  • How could you adjust pay bands to reward mastery in place?
  • What metrics would best capture excellence in each role?

Personalization Tips

  • At a clinic, let top nurses earn more than some junior supervisors if they hit patient-care excellence scores.
  • In software, pay senior developers more than entry-level team leads when they outperform key efficiency metrics.
  • In sales, let your best account managers out-earn regional managers when they hit elite client-retention rates.
First, Break All the Rules: What the World's Greatest Managers Do Differently
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First, Break All the Rules: What the World's Greatest Managers Do Differently

Marcus Buckingham & Curt Coffman 1999
Insight 7 of 7

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