Fundamentals
The essential attributes of a robust pay system
Equality
Equal pay legislation demands that employees doing work 'rated as equal value' must be paid the same. The only defensible way of ensuring that your organisation meets this demand is to employ an appropriate job evaluation scheme to accurately and consistently gauge the relative size of roles.
Transparency
A well-structured and defensible pay system does not need to hide in the shadows. A published job family framework linked to a comprehensive pay structure allows employees to understand not only why their pay is set at the rate it is, but why other roles attract higher or lower salaries.
Logic
For pay structures to be accepted and approved, they must obey common sense rules and be 'felt fair' across the organisation. A transparent system based upon robust JE that respects obvious reporting lines and well-functioning organisational hierarchies is an essential component of the reward function.
Affordability
The most transparent, logical and equality-proofed pay system is only as useful as its ability to be implemented on the basis of its affordability. Comprehensive pay modelling feedback is an essential component of every pay review project from the very early stages through negotiation and consultation, to implementation.