You are here

Getting pay and benefits right
We work with SMEs and businesses across a wide range of industries, both in the commercial and not-for-profit sectors.
Coming out of the biggest recession in our lifetimes, a number of our clients have recently found that their approach to pay has suffered because of decisions made years ago which make change difficult, or because they have salary packages which are rigid and uncompetitive. Others are living with some employees being paid more (sometimes a lot more) than colleagues doing exactly the same job.
Wherever your business sits, a review can be in order. We recently worked with a client who had not given a cost of living pay rise since 2008. They were reminded of this (!) in the Employee Survey which we had recently ran for them. They had two other issues that they wanted addressing. Firstly, one-off, tactical increases over the years meant that there were differences of up to 20% between the highest and lowest hourly rates of team members doing the same job, and these differences were not reflected in the performance of the staff involved. Secondly, there were high levels of overtime being worked at high cost, impacting performance and work-life balance.
Even by today’s recessionary standards, no pay rise for seven years is unusual. On closer inspection however, we found that the pay rates in place were, even after seven years, above the national Minimum Wage and the Living Wage as well as regional and national rates for the job.
We carried out a full analysis which identified and recommended new rates for each job, balancing pay rates and overtime rates and introducing KPI and behavioural bonuses targeted at delivering higher levels of productivity within the same number of hours. Costs were managed by increasing the contractual hours from 40 to 45 per week (thus guaranteeing a higher basic salary) whilst reducing the levels of overtime and the overtime rates. Overtime itself is now more closely monitored and managed.
We developed a full comms package to introduce the new rates, giving the reasons and the ’why’ of the change, to speed through the implementation, consulted on the change and implemented it.
At Gazella, we don't just talk about it. We do it!  For a confidential discussion, please call now on 07813-994556.

The gazellaHR blog

thinking your way through HR