As a specialist Pay and Reward review consultancy company, we are experienced in reviewing how effective an organisation’s current pay and reward systems are internally and how they compare with the organisation’s competitors and the general market.
Why carry out a pay review?
Pay reviews are done for many reasons. Did you know that Companies are legally obliged to review salaries regularly? This is also stated in the employment contracts. Many companies carry out pay reviews once a year to agree the annual pay increase but they can also 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.
An annual pay review would normally comprise of salary benchmarking to ensure that the pay structure remains competitive, affordable and aligned to the organisation’s pay policy and reward strategy.
Any detailed review should 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 Living Wage, Equal Pay or Sex Discrimination claims.
All organisations must promote equality and reduce gender pay inequality whilst 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.
To discuss how we can support your organisation call us on 01506 828767 or click here to Contact Us.