By Rachel Stone, Head of People Management, Smith & Williamson
In the middle of change it can be easy to overlook the impact that restructuring has on reward strategy. We all know that having up-to-date and flexible people practices is vital to support business objectives, but many businesses forget to review their reward approach as their business grows and changes.
Here’s our six stage model for checking that your reward systems are still up to the job:
Stage 1: Review changes to the size and structure of your job roles
As organisations are re-built and finances are re-organised, the boundaries of many job roles are likely to be extended. Both the depth and breadth of roles may change, and effective job design and evaluation techniques will be help you re-value these roles fairly.
Stage 2: Check the validity of your pay and grading structure
Check whether your pay structure is still suited to your new structure. What will be the impact on any grades or levels? How will pay and career progression be affected?
Stage 3: Obtain accurate and current market data
As the economy starts to recover, keep your eye on market trends to reduce the risk of losing good people when the job market eases.
Stage 4: Review the cost effectiveness of your benefit and incentive scheme provisions
Are you getting the best rates for benefits? From re-broking benefits to re-negotiating bonus schemes, now is the time to ‘spring clean’ your benefits offering and make sure you are getting real value for money for your business and your staff.
Stage 5: Re-communicate the value of your total reward package
Many staff just don’t know how much their benefits are worth. Work hard to communicate the total value of your reward package and get these messages out to your staff in clear and fresh ways.
Stage 6: Ensure your reward strategy is equal pay compliant
If you do make changes to roles and reward structures you need to check that these will be applied fairly. For larger businesses, equal pay analysis will help you to test the effectiveness of any changes made and provide a benchmark for measuring future progress.
For help with getting your reward systems fit for purpose, speak to Rachel Stone on 0117 376 2066 or email firstname.lastname@example.org
Disclaimer: By necessity, this article can only provide a short overview and it is essential to seek professional advice before applying its contents. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
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