Setting up a new pay-rate system
What to consider when setting up or changing a pay-rate system.
It will almost certainly cost you time and money to set up a new pay-rate system, or even change an existing one.
Getting started with a pay-rate system
In the first instance, it could be helpful to set up a checklist detailing the steps you plan to take. Remember to:
- plan the process for selecting or adapting a system
- involve workers, both full-time and part-time
- get expert advice if needed
- agree changes with workers' representatives, if any (or with workers individually where there are no representatives)
- evaluate the good and bad points of your existing system, if you have one
- decide what the objectives of the system need to be, eg, increased productivity
- consider the most suitable pay differentials and links for your business
- think about how workers might be able to earn increases to their basic pay, eg, through annual increases, bonuses, or other payments based on performance assessment
- communicate progress regularly to all workers
- look out for potential pitfalls, such as changes to pay differentials and scope for discrimination
- make sure the system is properly maintained
- review the system's performance
- ensure women returning from maternity leave get any pay rises occurring in their absence
.
Developed with
Actions
Also on this site
Content category