What is the best way to develop pay systems that are
understandable, Workable, and acceptable to employees at
all levels?

Answers were Sorted based on User's Feedback



What is the best way to develop pay systems that are understandable, Workable, and acceptable to e..

Answer / ali rehman g-6/4

Summary
Pay administration is a management tool that enables you to
control personnel cost, increase employee morale, and
reduce work force turnover. A formal pay system provides a
means of rewarding individuals for their contributions to
the success of your firm, while making sure that your
organization receives a fair return on its investment in
employee pay.
This publication provides time-tested concepts for
determining competitive pay levels and for maintaining fair
pay relationships among the jobs comprising a small company.

Who Needs a Pay Administration Plan?
Pay administration may just be a fancy term for something
you are already doing but haven't bothered to name. Or,
perhaps your organization has not been paying employees
according to any system, but waiting until unrest shows up
to make pay adjustments—using payroll dollars to put out
fires so to speak.

A formal pay plan, one that lets employees know where they
stand and where they can go as far as take home dollars are
concerned, won't solve all your employee relation problems.
It will, however, remove one of those areas of doubt and
rumour that may keep your work force anxious and unhappy—
and less loyal and more mobile than you'd like them to be.
What's in it for you? Let's face it, in business—
particularly small business—it's good people who can make
the difference between go and no go. Many people like a
mystery, but not when it's about how their pay is set.
Employees under a pay plan they know and understand can see
that it's equitable (fair) and equable (uniform) - that pay
isn't set by whim. They know what to expect and what they
can hope to shoot for. In the long run such a plan can help
you:


recruit employees;
keep employees;
motivate employees;
it can help build a solid foundation for a successful
business.
Developing and Installing the Plan
A formal pay plan doesn't have to cost you a lot of time
and money. Formal doesn't mean complex. In fact, the more
elaborate the plan is, the more difficult it is to put into
practice, communicate, and carry out.

The foremost concern in setting up a formal pay
administration plan is to get the acceptance,
understanding, and support of your management and
supervisory employees. A well-defined, thoroughly-
discussed, and properly-understood plan is a prerequisite
for success.

The steps in setting up a pay plan are:


define the jobs;
evaluate the jobs;
price the jobs;
install the plan;
communicate the plan to employees;
appraise employee performance under the plan.
Defining the Jobs
Unless you know each job's specifications and requirements,
you can't compare them for pay purposes. It's no surprise,
therefore, that the initial step in installing a formal
plan is preparing a job description for each position.

You may be able to write these descriptions yourself, since
in many small businesses the owner-manager at one time or
another has worked at just about every job. However, the
best and easiest way to put together such job information
is simply to ask employees to describe their jobs.
Supervisors should be asked to review these descriptions.

Your best bet here is to prepare a simple form to be filled
out by the employee (or someone interviewing the employee).
This is the time to begin explaining to employees what you
are doing. They need to know that their help is needed to
develop the pay plan - that you are not trying to find out
how well they are doing their jobs - just what they do. The
form should contain the following categories:


job title;
reporting relationship;
specifications;
primary function (What is the main responsibility of the
job?).
Main Duties - (List main duties in order of importance and
estimate the percentage of time spent on each.)

Other Duties - (List of duties not performed on a regular
basis.)

Job Requirements


formal education or training required;
experience or background required;
technical/administrative complexity;
responsibility for dollar results;
responsibility for supervision;
unusual working conditions.
It will probably take some time to prepare job descriptions
from the information you get from your employees, but what
you learn may have other uses besides comparing jobs for
pay purposes. For one thing, you may discover that some
employees are not doing what you thought they were, or what
they were hired to do. You may find you want to make some
changes in their work routines. The information may also be
useful for:


hiring, training and developing employees;
realigning duties in the organization;
comparing job data for salary surveys;
assuring compliance with various employment practice and
pay rate laws;
evaluating job performance based on assigned duties.
Evaluating the Jobs
Nobody knows a scientific, precise way of deciding exactly
how much a particular job is worth to a company. Human
judgment is the only way to put a dollar value on work. A
good job evaluation method for firms with 100 or fewer
employees is simple-ranking. It's a guess, too, but a
pretty well controlled guess.

Under the simple-ranking system, job descriptions are
compared against each other. They are ranked according to
difficulty and responsibility. Using your judgment, you end
up with an array of jobs that show the relative value of
each position to the company.

After you have ranked the job descriptions by value to the
firm, the next step is to group jobs that are similar in
scope and responsibility into the same pay grade. Then you
arrange these groups in a series of pay levels from the
highest to lowest. The number of pay levels depends on the
total number of jobs and types of work in your
organization, but for a company with 100 or fewer jobs, 10
or 12 pay levels is usually about right.

Pricing the Jobs
So far in establishing a pay system, you've had to look
only inside the company itself. To put a dollar value on
each of your pay levels, you should look outside at the
going rates for similar work in your area. Since you have
ranked and grouped jobs in pay levels, you won't have to
survey each job. Survey those in each level that are
easiest to describe and are most common in local industry.
Do try, however, to survey those jobs that have more than
one level, for example, junior and senior typists.

A survey of who's paying how much for what in your locality
is the best way of finding out how much you ought to pay
for each of your jobs. You probably have neither the time
nor the money to spend on making such a survey yourself.
That shouldn't be a problem; you should be able to get all
the data you need from sources such as your local chamber
of commerce, major firms located in your area, or from such
national sources as Human Resources Development Canada. If
you belong to a trade association, you may be able to get
its help to find out what the going rate is for one or more
jobs in each pay level.

In studying pay in your area and applying what you learn to
your own jobs, make sure you compare job descriptions, not
just job titles. Job titles can be misleading; there can be
great differences between what one organization and another
call their jobs. One firm's janitor may be somebody else's
environmental control engineer. After you are satisfied
that you are comparing apples and apples, you can compute
an average rate (the averages in the publications are
purely arbitrary) for each job and enter it on a worksheet
as follows:


Pay Level Position Average Rate
1 Clerk-Typist $574
2 Stenographer $635
3 Payroll Clerk $687
4 Secretary $723
5 Accounting Clerk $741
6 Computer Operator $815
(and so on)

You may need to adjust the average rates somewhat to keep a
sufficient difference between pay levels to separate them.
The going rates you find for each pay level can then become
the midpoints of your pay level ranges. (You can, of
course, set your company's ability to pay, the length of
your work week, and the type and value of your company's
benefit programs.)

Typically, the minimum rate in a level is 85 percent of the
midpoint rate, and the maximum rate is 115 percent of the
midpoint. With the arrangement, a new employee can increase
his or her earnings by 35 percent without a job change,
thus having performance incentives even if he or she is not
promoted.

You now have a pay range for each position in your
organization. It will resemble the following example:



Pay Range Minimum Midpoint Maximum
1 $490 $575 $660
2 $530 $625 $720
3 $580 $685 $785
4 $615 $725 $835
5 $690 $815 $935
(and so on)

Such a pay range will enable you to tell where your
employees' pay and pay potential stand in relation to the
market rates for their kinds of work. It should show you at
a glance where you need to make changes to achieve rates
that are fair within your organization and pay that's
competitive with similar businesses in your community.

In general, with a planned pay structure you should be able
to tie individual rates of pay to job performance and
contribution to company goals. It should also provide
enough flexibility to handle special situations.

Installing the Plan
At this point you have the general plan, but you don't of
course, pay in general. You must pay each employee
individually. You must now consider how the plan will be
administered to provide for individual pay increases.

In administering the pay increase feature of the plan, you
can use several approaches:


merit increases, granted to recognize performance and
contribution;
promotion increases for employees assigned to different
jobs in higher pay levels;
progression to minimum for employees who are below the
minimum or hiring rate for the pay level;
probationary increases of newer employees who have attained
the necessary skills and experience to function
effectively;
tenure increases for time with the company;
general increases, granted employees to maintain real
earnings as economic factors require and to keep pay
competitive.
These approaches are the most common, but there are many
variations. Most annual increases are made for cost of
living, tenure, or employment market reasons. Obviously,
you might use several, all, or combinations of the various
increase methods.

You may find that a form for documenting salary increases
and recording the reasons for them can be quite useful. You
will probably find that records such as these are useful
references for pay administration purposes.

Telling Employees about the Plan
After you have set your pay administration plan into place,
you have to consider how to tell employees about it. If
setting up a good program is number one in importance, a
close number two is explaining that plan to employees.

How to tell them is your decision. Some of the more
successful methods include personal letters to each
employee and meetings to explain the plan and answer
questions.

However you tell employees, you must clearly, honestly, and
openly explain the way the plan works. This is a prime
opportunity for you to build goodwill and good relations
with your employees. Be sure your supervisors understand
and can explain the plan to their people. Explaining the
plan to new employees is also essential, and it's a good
idea to review the plan periodically with all employees.

Employee Performance Appraisal
The majority of employees in the Canadian labour force are
under merit increase pay system, though most of their pay
increases result from other factors. This approach involves
periodic review and appraisal of how well employees perform
their assigned duties. An effective employee appraisal plan:


achieves better two-way communications between the manager
and the employee;
relates pay to work performance and results;
provides a standardized approach to evaluating performance;
helps employees see how they can improve by helping them
understand job responsibilities and expectations;
sets targets for employees to aim towards.
Such a performance review helps not only the employee whose
work is being appraised, but also helps the manager doing
the appraising to gain insight into the organization. An
open exchange between employee and manager can show the
manager where improvements in equipment, procedures, or
other factors might improve employee performance. Try to
foster a climate in which employees can discuss progress
and problems informally at any time throughout the year.

Again, to get the best results it's a good idea to use a
form for appraisal. A typical form includes such job
performance factors as:


results achieved;
quality of performance;
volume of work;
effectiveness in working with others in firm;
effectiveness in dealing with customers, suppliers, etc;
initiative;
job knowledge;
dependability.
You can design your own form, using examples you can find
in books on personnel administration, if necessary. Your
forms should be tailored to the jobs and should follow from
your job analyses.

How Can the Plan Help You?
The best pay plan in the world for employees won't be of
any use if it doesn't help your business. What's in it for
you?

Again, the answer is getting, keeping and encouraging good
employees. Your pay plan will help you:


Recruit—The pay ranges will provide competitive hiring
rates for attracting high calibre employees.
Retain—The performance appraisal plan and pay increase
feature will encourage performance plus growth and
development within your organization.
Motivate— The pay plan will provide something to shoot for
to keep employees interested in and enthusiastic about
their present assignments and also provide the incentive to
seek greater opportunity within your company.
Having capable employees who are interested and
enthusiastic will help you win the battle for business
survival and growth.

Updating the Plan
To keep your pay administration plan in tune with the
times, you should review it at least annually. Make
adjustments where necessary and don't forget to retrain
supervisory personnel. This isn't the kind of plan that can
be set up and then forgotten.

During your annual review, ask yourself if the plan is
working for you. That's the most important question. Are
you getting the kind of employees you want or are you just
making do? What's the turnover rate? Do employees seem to
care about the business? In the last analysis, it's not how
elegant the plan is or how beautiful the forms and
administration. What matters is how the plan helps you to
achieve the objectives of your business.

Source: U.S. Small Business Administration
Prepared by: Saskatchewan Regional Economic and Co-
operative Development

Is This Answer Correct ?    6 Yes 0 No

What is the best way to develop pay systems that are understandable, Workable, and acceptable to e..

Answer / mudasser

Introduction
Pay is a key factor affecting relationships at work. The
level and distribution of pay and benefits can have a
considerable effect on the efficiency of any organization,
and on the morale and productivity of the workforce. It is
therefore vital that organizations develop pay systems that
are appropriate for them, that provide value for money, and
that reward workers fairly for the work they perform. Pay
systems are methods of rewarding people for their
contribution to the organization. Ideally, systems should
be clear and simple to follow so that workers can easily
know how they are affected. In considering rewards it
should be borne in mind that pay and financial benefits are
not the only motivator for worker performance. Other
important motivators for individuals may include job
security, the intrinsic satisfaction in the job itself,
recognition that they are doing their job well, and
suitable training to enable them to develop potential.

What are pay systems?
Key Points: -
 Pay systems provide the foundation for financial
reward systems
 There are basic rate systems, where the worker
receives a fixed rate per hour/week/month with no
additional payment
 There are systems related in whole or part to
individual or group performance or profit
 There are systems based in part on the worker
gaining and using additional skills or competencies
Pay systems provide the bases on which an organization
rewards workers for their individual contribution, skill
and performance.

Pay structures
Pay structures are different - they are used to determine
specific pay rates for particular jobs, usually based on
the nature of the job, its content and requirements. A pay
structure provides the framework within which the
organization places the pay rates for its various jobs or
groups of jobs.
Pay systems fall into two main categories:
 Those where pay does not vary in relation to
achievements or performance, (basic rate systems), and
 Those where pay, or part pay, does vary in relation
to results/profits/performance (including the acquisition
of skills).

There are also systems where pay, and any enhancement, is
related to the gaining of extra skills or competencies that
can allow a worker to carry out a wider range of work, or
work at a higher level, and provide opportunities for
greater job satisfaction.

The selection of an organization’s pay system is often
determined by negotiations between management and worker
representatives. In theory these negotiations can be kept
quite separate from negotiations over payment structures
and levels or amounts of pay; but in practice negotiations
often embrace all pay-related issues.

Selecting and installing a pay system
Key Points: -
 Accept that there will inevitably be a cost
involved.
 Avoid most potential problems with a systematic,
well-timed and carefully planned approach.
 Involve the workforce, or its representatives, as
much as possible, perhaps through a joint working party.
 Re-examine the reasons for change and take advice
both inside and outside the organization. Obtain expert
help if needed.
 Don't just discard the existing system - take stock
through discussions to enable the organization to keep the
good and change the less good.
 Identify what the new system is required to do -
how does it relate to the organization’s overall objectives?
 Look at the possible new systems and consider which
might best suit the particular organization, with or
without alteration.
 Changes to pay make people anxious, and so the new
system should be kept simple and agreed with the workforce
and their representatives.
 Prepare the way carefully with briefings to the
workforce and management. Look out for any changes to
differentials and relativities. Document the system and if
possible run it for a trial period.
 Build in as much time as possible for proper
discussion and consultation.
 Make arrangements for maintenance, monitoring and
evaluation. Review the system regularly to ensure it is
performing as required.
 Be careful the system does not directly or
indirectly discriminate between men and women.

Performance-related pay
Performance pay schemes cover the various methods of
linking pay to a measure of individual, group or
organizational performance. They all share the idea that
where a worker can vary output according to effort the
prospect of increased pay will lead to greater performance.

What are the most common types of performance pay?
It is difficult to clearly distinguish one type of
performance related pay. They can be defined as:
Piecework:
A price is paid for each unit of output. This is the oldest
form of performance pay and is still used in some local
government direct service organizations (DSOs)
Payment by results:
Bonus earnings depend on measured qualities or values of
output for individuals or groups, usually based on work
studied time units; this covers a range of bonus schemes
and still forms the main method of performance pay for
manual workers
Organization-wide incentives:
Bonus earnings or pay levels based on measured quantities
or values for the whole establishment; this is frequently
the basis of contract price or tender-led schemes in local
government DSOs
Merit pay:
Bonus earnings or pay levels usually based on general
assessment of an employee's contributions to performance;
this is an earlier, less structured form of IPRP (see
below)
Individual performance related pay (IPRP):
Bonus earnings or pay levels based on the assessment or
appraisal of an employee's (or team's) performance against
previously set objectives, usually part of a performance
management system. This is a fairly recent development,
particularly in the public sector and has grown sharply in
use since the 1980s
What are the main steps in creating performance related pay
systems?
 Setting objectives.
 Appraising results.
 Linking achievements to pay.

Where output cannot be measured, the sensible solution
seems not to pay any bonus; however just because some jobs
are difficult to measure, doesn't mean that good
performance shouldn't be rewarded. This problem has
generally been tackled by providing a lieu bonus based on
average bonus earnings to those employees - very often
skilled maintenance staff and supervisors - whose work is
difficult to measure.

In most systems for manual workers the pay packet is in
fact made up of a number of components, usually including a
fixed basic payment, a variable bonus paid on output of
acceptable quality and a fall back provision. Bonus
payments are usually paid weekly or monthly.

In IPRP systems for white-collar workers the pay packet
includes a fixed salary element, where progress through a
range may be according to performance, and/or a variable
bonus paid out for achieving set objectives. Variable bonus
payments are usually unconsolidated and may be paid
monthly, half yearly or yearly.

Advantages:
 It provides a direct incentive for employees to
achieve defined work targets.
 The contribution an employee makes is recognized
with a tangible reward.
 A performance culture can be developed with its
introduction.
 Line managers can derive assistance from a
corporate framework for setting goals. It should improve
individual productivity and performance.
 Employees are more likely to focus on what they
need to do to improve if this is directly linked to pay.
 A good PRP system will reward the best performers.
 It is an effective way of dealing with poor
performance.
 Establishing a means of rewarding high performance
can assist in retaining the most industrious staff.

Disadvantages:
 It reduces pay equity and can make an authority
liable to costly equal pay challenges if not operated
fairly.
 The appraisal process can be affected detrimentally
because of the focus on financial reward rather than
developmental needs.
 Employees can be de-motivated if the goals set are
too hard to achieve.
 Too much of the process relies on the quality of
judgment made by a line manager.
 Co-operation and teamwork can be hindered.
 As reward made for short-term quantifiable goal it
can be too narrowly focused.
 There is a danger that employees can expect an
additional payout year on year. In a low inflation climate
the rewards might not appear to be that great.

Competency-based pay:
Competencies are the knowledge-skills and the attitude
needed by any individual employee to carry out their job
effectively. These can be incorporated into a pay system to
reward individuals who positively contribute to the overall
values and objectives of an organization. This is
competency based pay: rewarding the way people work, not
just recognizing what they can deliver.

How can the right competencies be defined?
Most competency based pay systems are determined by
performance indicators. Typically, the competencies needed
to drive progression are quantified by senior managers
through employee interviews, surveys and job analysis. The
following competencies are relevant here:

 core competencies that apply to any job within the
organization and reflect the organization’s core values
 the technical skills and expertise that are
necessary to carry out the job
 competencies relating to a specific job category
e.g. ‘leadership' for senior managers
 competencies that define the contribution an
employee makes to their role including:
 communication
 teamwork and motivation
 coaching
 knowledge and experience
 service delivery
 liaison and networking
 investigation analysis
 initiative and problem solving
 planning and organizing resources
 decision making process and outcomes
 teamwork and motivation
 knowledge and experience
 liaison and networking
 initiative and problem solving
 decision making process and outcomes

Advantage:
 Employees can develop their careers horizontally on
the basis of their experience and competence. Pay
progression and career development can be achieved without
the need for individual promotion

Disadvantage:
 It can be difficult to manage the expectations of
employees, particularly new recruits, who may be under the
delusion that they can automatically move to a much higher
salary simply by doing their job satisfactorily. In fact,
they actually need to develop their competencies. In
managing the process, effective communication between line
managers and staff needs to be put into place

Contribution pay:
Contribution pay is a relatively new concept. It combines
elements of both performance and competency based pay
schemes by recognizing employee achievements and
competencies.

How does it differ from performance pay?
Contribution pay is not a direct incentive for achieving a
defined set of targets. Instead it is similar to a
competence based pay reward system, emphasizing what type
of development is needed by employees to enhance corporate
success.



Advantages:
 It positively recognizes a commonly held assumption
that individuals who apply higher levels of skill and
contribute more should receive higher financial
remuneration than those that do not.
 Organizational improvement can be achieved through
constructively motivating people by encouraging them to
achieve higher levels of performance and skill.
 Employees are motivated through the recognition of
their achievements, not by the attainment of a few narrowly
focused set targets.
 An appraisal system that is based on agreeing
expectations based on results and competence combined with
an agreed joint plan for achievement is a powerful
motivating factor in its own right, irrespective of the pay
aspect.
 It is a good method for communicating the strategic
vision of an authority through the definition of expected
performance, competence, priorities and values expected.
This will be especially effective if individual objectives
and competencies are aligned to corporate objectives and
core competencies.

Disadvantages:
 Contribution pay is a relatively new concept that
has been developed principally by the pay experts Duncan
Brown and Michael Armstrong. As a relatively small number
of organizations have put this into practice, there is only
limited empirical evidence of its effectiveness.
 It is likely to be far more complex to manage a
contribution pay system than either IPRP or competency pays
because of because mangers have to simultaneously assess
both outputs and inputs.
 The process is more likely to look at the
contribution being made on an individual basis, which can
in turn undermine co-operation and teamwork.
 It raises the expectation amongst individuals that
if they achieve a set of targets and improve their skills
and competencies each year there will be a continual pay
out. This might be difficult to guarantee in a climate of
sustained low inflation.
 As contribution pay is based on individual
assessment it is prone to the capability of all line
managers to perform this task objectively and effectively.
Market-based pay:
Market-based pay links salary levels, and progression
through the scales, to those available in the market. It is
often used in conjunction with a performance pay matrix,
which allows faster progression from the bottom of the
scale to the market rate, which will be the mid-point.
Progression then slows, regardless of the performance of
the worker, as they are deemed to be earning above the
market rate for their job. It is rarely used as a scheme in
isolation, but may be part of a reward strategy
incorporating several performance elements.

Team-based pay:
While team-based pay has been around for some time in the
shape of departmental or group bonus systems it has taken
on more importance with the increased interest in team
working.

In team-based pay systems the payments reflect the
measurable goals of the team. Team working may be most
effective in situations involving high task interdependence
and creativity, although it can be difficult to define the
team, the goals, and the appropriate reward. Schemes can be
divisive if they are not open and transparent. Goals should
not be shifted once agreed - they need to be achievable.

The aim of team-based pay is to strengthen the team through
incentives - building a coherent, mutually supportive group
of people with a high level of involvement. The team
achievements are recognized and rewarded. Peer group
pressure can also be helpful in raising the performance of
the whole team.

As with any other pay system, involvement of the workers
who will be affected is crucial in the design of the
scheme. They must be involved particularly in the way
objectives are set, how performance is measured, and the
basis on which team rewards are distributed.

Advantages:
 It positively encourages team working and co-
operative behavior.
 It constructively motivates people to achieve
higher levels of performance and skill on a team basis.
 It is an effective way to clarify goals and
priorities within a team.
 It is an effective way of cascading objectives
defined by senior management throughout the subordinate
teams.
 It can be usefully deployed in a period of intense
organizational change as it can emphasize the necessity for
effective team dynamics in flatter organizational
structures.
 It can help to bring about a change in cultural
attitude particularly with the introduction of customer
focused working practices.
 It encourages flexible working and multi-skilling.
 It provides a good incentive for a team of
employees to improve their performance.
 It encourages individual team members to tackle
poor performers.
 It is an effective way of enabling employees to
work collectively in self directed teams.

Disadvantages:
 Although some organizations extol its virtues, it
is sometimes difficult to define the scope and boundaries
of the team, and to identify clear and meaningful targets
that genuinely reflect group effort.
 As it does not differentiate between high and low
performers this could cause resentment within the teams.
 It will only be effective if the team is well
managed and positively committed to organizational
improvement. A team, for example, might not need the
incentive of extra financial inducement anyway.
 It is difficult to objectively discuss with
individual employees what impact their behavior is having
on other employees.
 There is a danger that peer pressure will intensify
causing an oppressive and de-motivating atmosphere.
 It is difficult to satisfy the development of
methods to measure performance and a fair means of
measuring team performance.
 There could be an organizational problem of
uncooperative behavior being shifted from individuals in
teams to the relationship between teams.
 Organizational flexibility could be inhibited
because people in cohesive, high performing and well-
rewarded teams might be unwilling to move when needed. This
could lead to difficulties in reassigning work between
teams or breaking up of teams in response to future
organizational requirements.
 There is a danger that the team can get into a
downward spiral with output being maintained at the level
of the lowest common denominator. This will lead to members
of a less successful team getting less money and the
increased possibility of the team being unable to retain
its best staff.
Modernizing pay and rewards strategies:
Pay structures can speak volumes – not only in their
implications of values, equality and worth to employees and
the community they serve, but to the performance of the
authority itself. Getting a structure to reflect this is a
challenge local authorities face on an ongoing basis. It
requires commitment from senior managers, members and human
resources.

What are the benefits?
A modern and strategic pay and rewards system can:

 Lift motivation and drive service improvement if
people are rewarded properly for their contributions.
 Increase the efficiency of the day to day running
of your pay and rewards system.
 Prevent discrimination and ensure that all staff is
paid fairly, thereby eliminating any liability to big equal
pay claims.
 Become a powerful method of innovating change and
improvement when pay systems are no longer used solely as
an administrative tool.
 Help cost/performance calculations to be accurately
estimated thereby enabling authorities to inform residents
and central government of the actual efficiency of the
council’s operations - and also provide the chance to
identify and act on specific under-performing areas.

Making it work:
Effective pay and rewards systems need commitment and
action from senior managers, members and human resources.
Councils need to recognize that this is a potentially
costly process, especially given the need to deal with
equal pay. Changes can be introduced in a step-by-step
approach to help control costs.

The following checklists are designed to help establish who
exactly should be doing what.

Senior managers and members should:
 Commit to pay equality and ensure that the council
develops and promotes an equal pay policy.
 Commit to developing an effective performance
management system that integrates individual, team and
organizational performance objectives.
 Ensure that pay data is fully integrated into the
council’s performance management system so that the
council’s efficiency can be properly assessed through
cost/performance calculations.
 Staff needs to see a link between their pay and
rewards and their efforts towards service improvement –
this culture change should become a strategic corporate
objective.

Human resources teams should:
 Demonstrate the strategic impact of new pay systems
to senior management.
 Develop proposals for a new pay structure.
 Assess the adequacy of personnel and payroll data.
 Carry out a risk assessment and ensure that they
can manage the whole project.
 Carry out an equality impact assessment of the
proposals.
 Complete the process of the local pay review.
 Implement the new structure.
 Organize regular equal pay audits after
implementation.
 Ensure that training is available for all staff on
equality and diversity issues.
 Ensure special training is available for line
managers who have been given new performance management
responsibilities.
 Communicate pay change and their importance to
staff, and encourage their feedback.
 Develop their performance management skills so they
can handle appraisals, manage underperformance and give
staff work-life balance and development opportunities.
 Manage their teams well so that employees remain
motivated and always want to give their best.

Is This Answer Correct ?    2 Yes 1 No

Post New Answer

More Human Resources Interview Questions

why you have chosen to pursue a career in HR

3 Answers   BSNL, Syntel,


Does getting angry in an interview when presurred indicate one's propensity toward violence should things not always go smoothly at work?

0 Answers  


The present state of recession in the IT Industry - as a Human Resource Manager how are you going to undertake Human Resource Planning at Macro Level to tide over this crisis?

1 Answers  


What is the pay philosophy? o Pay-for-Performance? o Seniority? o Pay-for-Knowledge?

1 Answers  


what is vda full form ?

3 Answers  






what is the full form of SMART

17 Answers   HCL, MBO,


I want to know if I do B Sc and MBA simultaneously whether it will be acceptable by organization (private / public) while I try for job opportunities. Or will they reject saying simultaneous graduation is not acceptable as I have seen organization asking for 12+3+2 years for qualification. I had previously done BA (2 years) then MCA (2 years). Pl. advice.

0 Answers  


Explain the salary format of different level of employees?

0 Answers   HP,


What is salary?

9 Answers   FleetGuard, TCS,


What are the benefits of progressive discipline?

1 Answers  


What screening and selection methods are available, and which ones are most accurate? Explain.

1 Answers  


What role does the Internet have in recruiting?

2 Answers  


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)