It is more important than ever to ensure such decisions are based on and supported by clear evidence.
We have a longstanding track record of advising and supporting Remuneration Committees that are involved in organisation wide decision making. The following are some key steps to support and inform remuneration decisions:
- Conduct thorough research to identify the factors influencing pay budget decisions (e.g. market data, historical awards, CPI/RPI). This research will support the decision-making process by ensuring it is clear, transparent and based on reliable evidence.
- Effective use of appropriate market data. We can draw market data from a number of sources including both our proprietary database, research and other sources we have access to. This includes recent pay settlements for both senior levels and all employees within comparable organisations.
- Develop guiding reward principles for the whole organisation. This is an integral step as it will ensure all remuneration decisions are clear and consistent with the principles at play.
Both the data and insights we provide enable Remuneration Committees to make informed, evidence-based decisions. In turn, this leads to an effective and appropriate allocation of resources for the year ahead – both for the Executive team and all employees.
Being clear on the appropriate reward for employees, organisation-wide reward principles and the overall business strategy will enable organisations to be more transparent with reward-related decision making at all levels of the organisation. This is crucial at a time of increased scrutiny and reputational risks emerging from these reward decisions.