QCG

Pay structure design, modelling and reward 

The Project

As part of a wider project our Reward team worked with this organisation to completely overhaul their pay structure.  Based on business need and the demand to deliver on an efficiency exercise we reviewed the traditional pay structure and designed a radical approach that was not based on a ‘one-size fits all’ principle.  We developed a differentiated approach that encompassed the roles people carry out, how they are paid, how they are measured and  how they are recognised for their contribution.

Our Role

We worked closely with the in-house team to evaluate the needs of the business and to develop a differentiated approach to pay, performance and reward.  As part of our role to help develop the philosophy and principles of the new approach we also built and developed a detailed pay model to provide a predictive tool for managing the implementation of a new system and for managing pay in the future.  The model was a completely bespoke system that managed the nuances of the organisation and its legacy systems but also provided the platform for the new pay structure.

Outcome

The organsisation has now embedded a system that differentiates employees by work group and by location.  Their base/variable gearing depends on the relevant market practice for their work group, and pay is not set to a national scale but allows for local variation to reflect market practice.   The performance management system has been aligned to the needs of the different work groups and a new recognition scheme has been implemented.