What is the meaning of banded labor?

Banded labor refers to a system of work organization where tasks are divided into defined bands or categories based on skill level or productivity. This approach helps employers manage labor costs and optimize workforce efficiency by grouping workers according to their capabilities. In some contexts, it can also imply the use of standardized pay scales or performance metrics to evaluate and compensate employees within those bands. Overall, banded labor aims to streamline operations and enhance performance within various industries.