The Reward Management Toolkit: A step-by-step guide to designing and delivering pay and benefits by Michael Armstrong & Ann Cummins

Author:Michael Armstrong & Ann Cummins
Language: eng
Format: epub
Publisher: Kogan Page Limited

FIGURE 6.12 Checklist: factors taken into account in conducting and interpreting a market rate assessment

* * *

References

e-reward market data tool: www.e-reward.co.uk

Incomes Data Services: www.incomesdata.co.uk

Office for Government Statistics: www.ons.gov.uk.

XpertHR: www.xperthr.co.uk

Tool 07

Base pay management

Introduction

Base pay management is the process of deciding on pay levels, developing grade and pay structures and operating the financial reward system. It is concerned with the rate for the job as affected by its value to the organization and its market rate. However, rate for the person considerations are taken into account when provision is made in a pay structure for pay progression related to performance, contribution or service.

Base pay management is therefore at the core of reward management. It involves the use of job evaluation and market rate analysis techniques. It is concerned with methods of pay progression within pay structures and is therefore linked to the design and management of contingent pay schemes such as performance pay. It also deals with the operation of pay reviews.

Graded pay structures are a fundamental aspect of base pay management. However, many organizations, especially smaller ones, do not have a formal structure and rely on ‘spot rates’ (rates for jobs that do not allow any scope for the progression of base pay). Spot rates are also frequently used for the base pay of top management posts where they tend to be rates for the person rather than rates for the job, although there is likely to be scope for the payment of additional cash bonuses.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.