HR Practice Reward

Pay systems Pay Systems Basic Rate Systems Variable or Incentive Pay Systems Flexible benefits

Basic rate systems ProsCons Cheap and simple to administer and operate Certainty and stability in pay for the employee Simplicity in pay progression Costs more easily forecast Fewer grounds for disagreement and dispute at individual levels No incentive for improved performance or quality Individual employees may feel aggrieved if perceive themselves to work harder or perform better than others Can be rigid and hierarchical

Variable rate systems Variable rate systems ProsCons Rewards individual contribution and performance Can be more flexible and responsive Can be self-financing and linked to productivity Easier to control increasing pay costs Potential subjectivity, perceived bias and unfairness Can be damaging to long term business success Can work against effective team working

Pay Structures Graded structures Broad banding Spot salaries/individual pay rates Job families Pay spines

Linking pay with performance Definitions of pay and performance The link to motivation Non-pay rewards –Achievement –Recognition –Responsibility/autonomy –Influence –Personal growth

Reasons for joining the public sector Making a positive difference Working with people A career had always wanted to do Interesting work Career progression

Employees’ pay -legal aspects Employees’ pay - legal aspects National Minimum Wage Maternity, paternity, statutory sick and redundancy pay Definition of a week’s pay The right to be paid Rights on transfer of an employee’s employer Short-time working Lay-offs Reducing pay rates Agreeing pay reductions Unlawful deductions

Making pay decisions Equal pay legislation –Equal pay audits –Transparency in earnings Information to inform pay decisions –Labour turnover and stability –Job evaluation –Salary surveys –Incomes Data Services –Local or sector discussion groups –Recruitment agencies

Pensions The state pension Final salary schemes Money-purchase schemes Communicating with the employee