The pay review and looking after the wider workforce
This is the second issue of a three-part mini-series on your pay review priorities. Last week, we looked at how the pay review is an integral part of ESG. We explored the links to the UN SDGs with how:
• paying the real living wage supports Goal 1: no poverty
• reducing the gender pay gap boosts Goal 5: gender equality
• creating clear pay ranges helps Goal 8: decent work and economic growth
• distributing your pay budget fairly assists Goal 10: reduced inequalities
• increasing your pay transparency supports Goal 16: peace, justice and strong institutions
Next time, we’ll look at investors’ expectations on remuneration. But this week, we’re focusing on how you can look after the wider workforce during this pay review cycle. The pay review is the prime time to work on Goal 1: no poverty.
Based on my mastermind events and conversations with Reward professionals, I have compiled the attached slides on how organisations are addressing the cost of living crisis. These companies have put forward initiatives on base pay, incentives, benefits, and pensions.
It is not possible to embed all the suggestions listed on the slides. But I hope they will provide you with some inspiration on what your organisation can do to support the wider workforce during the pay review.
Whichever initiatives you decide to implement, you’ll need to consider if they are:
• once-off new arrangements: what would you do if there were another crisis in 12 to 18 months’ time?
• on-going new arrangements: what is the knock-on cost impact to benefits and pension contributions?
You also should think about:
• beneficiaries: who are these new arrangements for?
• communication: informing employees about your new initiatives, refreshing them on what is already available, and reminding them they can always talk to HR in confidence
• finding out your employees’ needs and wants
Whatever sector you’re in and however big or small your organisation is, base pay, incentives, benefits and pensions are all part of your Responsible Reward offering. By linking your sustainability and remuneration strategies, you become an employer, an investment and an investor of choice. If you wish to explore this topic further, feel free to book a call with me.