Feature topic - Adding value
will be constraints on budgets and new expenditure, he believes this will create a need to bring energy and positivity back into the workplace. “So I think we will see a lot of workplace – or indeed virtual activities – on restricted budgets aimed at re-energising the workforce and bringing them back together,” he concludes. n ● Update your payroll systems. With a salary increase or bonus agreed on, the details should be exported to your payroll system so they can be processed, making sure the individual is paid accurately. scenarios to test what the impact of a pay increase or bonus would be on an individual’s salary and on the company’s overall budget. ● Cleanse your pay and reward data. You need to remove any outdated or unnecessary information from your system, as well as ensuring that your data is accurate; for example, making sure that employees are reporting to the right line manager who will be responsible for overseeing their reward review. You may also choose to acquire third-party pay data to help you benchmark internal salaries and bonuses against those for similar roles in the market. ● Conduct pay and reward modelling. It’s important to model different Rules of engagement Geoff Pearce, managing consultant, reward at Zellis, recommends the following general rules for successful reward planning and implementation. ● Define and agree your reward strategy with all teams involved. This should help you to establish consistency, avoid disputes, and achieve greater efficiency when it comes to conducting salary and bonus reviews. ● Provide training for all individuals involved in the reward process. This may not only involve how to use your compensation software, but also training in ‘soft’ skills like providing effective performance feedback, as well as identifying what factors to consider when determining individual pay reviews, including market comparisons. ● Ensure your job descriptions and contracts are up to date. This helps to manage expectations regarding pay ranges and reduce the likelihood of disputes over compensation.
staff to create a reward strategy that works for them.” Drake adds that data analysis can be a valuable tool for tailoring and adapting reward strategies. There is also, he says, a growing dialogue between employers and employees: “Rather than having a set offering, companies are starting to have conversations with staff centred around which areas of their life they’d like to improve and what products and solutions can help them do so. This approach allows them to understand how employees like to engage with benefits and rewards, fostering a more collaborative approach.” Vidgeon also acknowledges the value in this approach and believes dialogue is essential for organisations to continually assess their reward strategy and the value that the workforce places on each element. “This can be done through survey, consulting staff at all levels and trade unions,” he says. “The creation of focus groups can provide a good source of information, as can exit interviews.” Of course, we have seen unprecedented disruption to the world of work over recent months due to the emergency measures implemented in response to the Covid-19 pandemic. Reward professionals have been at the sharp end, having to adapt immediately ...might find the answers to these questions are different from what they were even just a few months ago...
to the new rules put in place by the government, such as furloughing workers. But what kind of long-term effect can we expect on reward strategies? “It’s difficult to predict the longer-term impact while we’re still in the midst of the crisis,” says Drake. “Businesses have already started to postpone salary reviews, promotions and bonus conversations until more certainty about the future is established. However, it’s likely that employers will start to assess the benefits they have in place as they come out of the other side of this. They’ll review whether the benefits added any value and made a difference to the lives of their employees during a crisis. Employers might find the answers to these questions are different from what they were even just a few months ago as everyone plans for life post Covid-19.” Thomson believes that in times like this, employers need to ensure staff feel valued more than ever. “With a lot of sectors introducing remote working, possibly for the first time, keeping everyone connected, in the loop and motivated is key. Recognition and rewards go a long way towards achieving this.” Vidgeon, meanwhile, hopes the current trend towards wellbeing will continue to blossom in the wake of the crisis. “For many years I have been interested in the concept of building kindness into the culture of organisations,” he says, “and this seems a good time for it to be considered seriously. The absence of kindness can be incredibly destructive and harmful. Wellbeing in the workplace is something that is now being encouraged and research is telling us that a respectful environment has a very positive effect on energy, performance and job satisfaction.” While Hodson acknowledges there
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Issue 60 | May 2020
| Professional in Payroll, Pensions and Reward |
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