How do you Explain different types of pay structures?

Pay structures refer to the frameworks that organizations use to determine employee compensation. Common types include traditional pay structures, which offer fixed salary ranges based on job roles and levels; broadbanding, which consolidates multiple pay grades into fewer, wider bands to allow for more flexibility; and variable pay structures, which include performance-based incentives like bonuses or commissions. Each structure has its advantages, influencing employee motivation, retention, and alignment with organizational goals.