Remuneration & benefits
Every organisation needs to
establish clarity on the principles of their remuneration system.
- A consistent logic
for basic reward and contract terms.
- When, how and on what
basis salaries are reviewed.
- The role of managers
in determining pay.
- Advantages (and
otherwise) of pay scales.
- The design and
purpose of bonus and commission schemes - a notorious trap for
- Pension schemes -
why, funding rates, what is "pensionable" (e.g. bonuses?).
- Cars - why,
alternative allowances, tax effectiveness.
- "Grading" - are
grades needed, the link with benefits entitlements, advantages (and
otherwise) of job evaluation. Note that several HRCA consultants are
skilled in application of Hay job evaluation.
Principles are then
usefully backed up by effective communication and monitoring of such
- Costing - and
communicating the value of - the total package. Making sure there is no
tangle on taxation of benefits.
- Responding to the
recruitment market and salary surveys.
- Identifying the
relationship between reward and retention.
- Is there value in a
"cafeteria" compensation approach - staff selecting from a menu of
- Is a company and its
employees really clear on what is a contractual benefit and what is
discretionary? Sloppy wording on bonus or car schemes can be a financial
and motivational disaster.
- The whole complex
area of equal pay, including legislation on part-time and fixed term
staff. This can include issues of access to overtime and discretionary
leave, as well as more obvious issues of "equal value", "like work",
differential performance ratings, and maternity policies.
- Avoidance of indirect
- Tracking grade and