Base and Variable Pay

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Course Overview

Set pay too low and you might not attract the right workforce. Set it too high, or link it to the wrong performance measures, and the costs could beruinous. So how do you get it right? This course provides a comprehensive guide to structuring base pay and variable pay design.

Audience

Reward managers, compensation and benefits consultants, and HR practitioners - either those with limited experience of reward management or those who would like to increase and broaden their knowledge and expertise in pay structuring and design.

Skills Gained

By the end of the course you will be able to:

• identify different job evaluation methodologies and decide when to apply them
• assess the pay-setting context, including the difference between internal and external relativities
• evaluate different pay structures and pay progression methods and decide when it is appropriate to apply particular methods
• define the different elements of an equal pay audit
• differentiate between the elements of pay, including pay premia and allowances
• assess the relationship between pay and the wider performance management system
• evaluate incentive schemes and the different approaches to individual and group incentive schemes.

Course Outline

DAY 1 - Introduction

• different job evaluation methodologies
• pay-setting context, structures and progression

Job evaluation and grading

• making sense of the relative worth of jobs
• formal versus informal schemes
• purpose and key features of job evaluation
• external factors

Pay-setting

• trends in performance evaluation
• the interaction between internal and external worth

Pay surveys

• external market rate and internal equity
• survey benchmarking and data presentation
• sources of market pay data
• the regulatory environment

Pay structures and progression

• key concepts and definitions
• different structures and how to select the most appropriate for different types of organisation
• ensuring transparency, consistency, alignment and equal pay
• designing and implementing a new pay structure
• managing pay progression in unionised and non-unionised environments
• different pay progression philosophies

Equal pay audits

• equal pay action plans.

DAY 2 - Pay for performance

• individual performance-related pay and the link to performance management
• latest trends and different approaches
• case studies

Incentive pay

• incentive scheme design, bonus scheme features
• balance between fixed and variable pay elements
• sales incentives and commission schemes

Action planning

Base and Variable Pay / REWBVP