On 5th November the annual post-survey event for the QCG Rail Rolling Stock & Maintenance Roles Survey took place. This event provides a space for survey participants to network with each other, discuss topical issues, and explore key findings from the survey.

This highlights document provides an overview of key discussion points on the day.

Continued pay discipline

Survey participants discussed that pay budgets, in-year spends and promotion related pay increases are being monitored and scrutinised more closely than ever before – not only within the business but also from a reputational point of view from external stakeholders and the general public. COVID-19 is said to have played a contributory role to this, rather than being a direct cause of this change.

Participants highlighted that they are experiencing push backs from managers because they can no longer award pay increases without building a strong case to do so. Consequently, it is important to ensure that managers understand the intent and rationale of the reward strategy and how this aligns with business objectives.

In order to effectively manage these changes, whilst minimising the threat to employee engagement, our view is that organisations ensure the following:

1. Keep it fair

• It is vital that organisations ensure that there is full transparency and fairness of the guiding principles used for pay decisions across the organisation.
• By ensuring these guiding principles are clearly communicated to employees, they are more likely to be understood by employees, meaning organisations can go a long way to enhance the perception of fairness in these times of uncertainty. This in turn can minimise the threat of employee disengagement as a result.

2. Focus on the ‘total’ reward package

• It is easy for organisations and employees to forget about the value of their total reward package.
• This oversight can be bridged by producing total reward statements for employees which indicate the monetary value of each element of the reward package.
• This, in conjunction with communications on guiding principles, ensures employees are aware that although the organisation may not have a large budget to play, the overall value of their reward package can still be seen as attractive.
• Consequently, this may encourage further uptake of benefits on offer and will work to reduce pressure on pay arising from tighter pay budgets as a result of COVID-19 – all having a positive impact on recruitment and retention.

Looking more broadly than gender pay?

Attendees highlighted that gender pay is high on agendas – despite some organisations having less than the 250 employees required to report as per government guidelines, and with reporting requirements for those with more than 250 employees postponed until 2021 in light of COVID-19. Ethnicity pay is also topical for attendees, however barriers were discussed in relation to the ability to gather data – not only for ethnicity but other protected characteristics.

Despite this challenge, it is important to capture as much demographic information as possible to ensure that organisations have adequate insights to tackle any potential underlying causes of inequality in various areas of the business, e.g. recruitment, retention and pay/career progression.

In light of the GDPR regulation back in 2018, some employees will be concerned about why personal information is gathered, and how it will be stored. A method of increasing disclosure rates is communication - it is crucial to ensure employees are aware of the reasoning behind the collection of such data as well as the action plans that are put in place in light of the results, showing a commitment to change in a transparent manner.

In line with the emphasis being placed on ensuring reward changes do not have a disproportionate impact on any protected characteristic, QCG are now providing Equality Impact Assessments. You can find more information about this here.

The wellbeing agenda

Survey participants discussed the processes and practices in place which encompass the wellbeing agenda. COVID-19 has had a positive impact on pushing wellbeing initiatives forward and organisations have focused on a ensuring a balanced offering, covering mental, financial, physical and social wellbeing.

It is vital that an all-encompassing approach to wellbeing is implemented due to the vast overlap of one form of wellbeing over another. For example, a lack of financial wellbeing can act as a symptom and have detrimental effects to an employee’s mental wellbeing.

Recognition is an area of reward which can have a positive impact on employee wellbeing, particularly in the anxiety provoking times we are in. It is important to note that recognition does not have to be monetised. Non-cash rewards, can be as – or even more – effective as traditional bonus awards, and can be used to supplement the approaches outlined above.

Examples of non-cash rewards include the following;

• Vouchers;
• Team get-togethers e.g. meals;
• Praise from immediate managers;
• Leadership recognition e.g. one to one conversations with senior stakeholders;
• Employee awards e.g. certificates;
• Gaining additional annual leave days; and
• Funding of professional and industry related training courses.

Now more than ever, recognition tells employees their contribution is valued, great performance is communicated across the organisation, and companies are committed to keeping their employees engaged and well through these difficult times – even if other areas of their reward package are under pressure.

The QCG Rail Rolling Stock & Maintenance Roles Survey is the most reliable source of specialist reward data in the sector, including policy, salary and benefits data from leading organisations. For additional information about QCG or the survey please contact Peter Fairchild on ku/oc/gcq//retep.