Why carry out a pay review?
Pay reviews are done for many reasons. They can be done once a year to agree the annual pay increase or they can be undertaken to establish if your pay and reward practices are aligned with your business priorities; identify risks and support future decision making. In fact the Equality and Human Rights Commission recommends that all employers regularly review and monitor their pay practices to ensure they are not discriminatory.
So how would we go about undertaking a pay review?
Any review would commence with a review of the current grade structure, the pay structure and should involve key personnel from the outset e.g. Executive Team, Staff Representatives/Trade Union by asking for their feedback. Questions such as ‘Is your pay system felt fair?’ ‘Is it being operated consistently? ‘How do staff progress through the pay structure’ etc. should be asked. A review of all associated pay and benefit documentation would be undertaken assess how effective the current pay and reward systems are. This also helps establish how the current pay practices are impacting on employee engagement, performance management, the culture of the company, affordability, competitiveness (ability to attract and retain high quality staff) and also to highlight any business/financial risks, for example potential National Minimum Wage, Equal Pay or Sex Discrimination claims.
Those of you in the public sector and working in companies in the private and voluntary sectors that exercise a public function must promote equality and reduce gender pay inequality ensuring that any pay review process has not in itself been discriminatory.
As a specialist pay and reward consultancy company, we can make your current pay and reward systems more effective internally and more competitive within the market place. Call us now on 01506 828767 for a free no obligation chat to discuss how we can support you with your pay review.