We have a tried-and-tested approach to working with clients on designing or reviewing their pay structure and overall reward frameworks. Our approach enables us to recommend improvements that deliver a significant and sustainable improvement in employee engagement.
Discover
First, in a ‘Discovery’ stage, we gain a deep understanding of your issues and expectations. This is not about creating ‘wish lists’, it is about understanding what works in the system, and what doesn’t. This is against the backdrop of the Employee Value Proposition and the main strategic and day-to-day issues of the organisation.
Analyse
Then, we perform a series of analyses to further our understanding of the current system. This allows us to add to the body of evidence collected during the Discover stage. These analyses enable us to establishing the gap between perception and reality. They include distribution of employee salaries, market positioning of pay and benefits, and internal equity.
Design pay structure recommendations
Finally, we bring together our findings from the previous two stages to inform a set of recommendations enabling clients to improve satisfaction with pay and employee engagement.
In doing so we use our 5 Cs Model of Reward Effectiveness. This model considers a wider set of factors related to reward that we consider an opportunity to drive, rather than be a barrier of, employee engagement. The methodology provides a framework to thoroughly test areas of reward from both a top-down and bottom-up perspective. Although every organisation has its own unique culture and challenges, the following factors can be used across any organisation to test the efficacy of reward:
| Reward Effectiveness - What organisations should aim for | |
|---|---|
| Clarity | The principles, rules and processes to manage pay are simple and easy to understand and communicate. |
| Consistency | Reward decisions follow the agreed guidelines, miminising the need for exceptions. |
| Competitiveness | The pay and benefits package is valued by employees in the wider context of the Employer Value Proposition and it supports recruitment need. |
| Control | There is a clear connection between employee contribution and performance and their reward, including the ratioanle to organise roles in grades and links to pay. |
| Congruance | Reward is aligned wih stragety and values, as well as the political and economic pressures of the market. |
By answering these questions, organisations will be in a position to understand the effectiveness of their current reward framework – and how reward fits in with the Employee Value Proposition.
The scope of our work covers the following areas:
- Grading structures;
- Annual pay review;
- Setting salaries for new hires;
- Salary increases for promotions;
- Addressing pay challenges from employees and/or managers;
- Managing, evaluating and rewarding employee performance through both pay and employee recognition;
- Building a pay and benefits package that reflects the culture and values of the organisation and attracts and motivates the right talent;
- Implementation planning; and
- Business case for internal and/or external stakeholders (e.g. Senior Leadership, HM Treasury).
We have the flexibility to tailor our approach to meet your requirements, budget and delivery timetable.
