We have considerable experience of helping design remuneration policies. But it is not an ‘off the shelf’ process. We can help by sharing our experience so that your remuneration policy matches your business needs. A remuneration policy that is ‘off the shelf’ will not support the business and will quickly become degraded and ignored.
Fact Finding Stage
Firstly we will review all you existing polices and procedures on remuneration and benefits, we will also review the operation of recruitment, retention and motivation schemes.
Secondly, we will discuss with you what your needs and objectives while reviewing your existing data and how current policies work.
We will then review all the data we have collected at the fact-finding stage and consider this against market data.
We will then provide a report with suggestions and recommendations as to how these sit against the market.
When the high level polices have been agreed from the review stage, we will then draft the necessary documentation, agree approvals and implementation.
What to Review
The below is not a comprehensive list but gives an idea of the areas to be considered.
The general approach to remuneration and your HR policy and how it relates to your business objectives. How you want to treat people and where you want to pay them. The approach to variable pay, if any, and why. Your general approach to recruitment, motivation and retention.
When will your reviews take place, what will the process be? Have comparators for the benchmark data been agreed so that an annual debate about which organisations are appropriate can be avoided? Is there a clear process as to who in the organisation (at all levels) makes recommendations on pay and who (at all levels) approves pay?
Your approach to recruitment, will you offer people more than they are currently on (for the same job), will you provide enhanced provisions to recruit key people and, if so, what will those be (notice period etc) and for how long will those provisions apply? What will be your approach to dealing with the market being out of alignment with your grading or internal policy? What will be your policy on supplements.
The policy on termination is obviously an important aspect of the remuneration policy as payments to terminated individuals can give rise to adverse comment and publicity. What is the policy on termination in particular duration and expectations during notice? How are notice periods dealt with for both good and bad leavers? How to deal with the ‘not that good but not so bad’ leavers. How is pay in lieu dealt with. Will you apply mitigation and, if so, how will that be specified?
What pension provisions are you providing and at what level?
What benefits will you provide and to whom? Benefits cover the standard ‘benefits in kind’ such as cars, membership schemes, life insurance, medical cover, sick pay, long service awards and other direct financial benefits. They also cover the standard things such as working hours, overtime, parental / other leave. However, benefits are far more extensive and broader covering various health and wellbeing programs, community engagement programs, personal development and learning programs and finally commercial advantage schemes. All these can be considered to the extent that they are compatible with business requirements and social objectives of the organisation.
In some cases, it can be helpful to conduct a benefits benchmarking review as part of the process to get an over view of the market against the specific organisation.
Give us a call to discuss how we can help