PLANNING AND IMPLEMENTING PAY REVIEWS

Non-negotiated Pay Reviews

The steps required to plan and implement a non-negotiated pay review are:

1. Agree budget.
2. Obtain and analyse data - market rates of pay, market pay increase trends, distribution of existing levels of pay in relation to pay policies, compa-ratios, attrition, performance ratings, etc.
3. Prepare and obtain agreement to review guidelines - budget, distribution of variable pay awards, dealing with anomalies, use of market rate and other data, dates for completion, procedure for reviewing and agreeing proposals, etc.
4. Issue budgets, data, guidelines and timetable to reviewing managers.
5. Provide advice and support.
6. Set up peer review processes.
7. Iterate to achieve acceptable proposals in relation to budget, pay policies and review guidelines.
8. Summarize and cost proposals.
9. Obtain approval.
10. Update payroll.
11. Generate letters from managers to employees.
12. Inform employees.

Negotiated Pay Reviews

1. Obtain and analyse data on pay settlements and movements in market rates.
2. Agree target settlement, taking into account affordability; comparability; effect, if any, on other units, divisions or employee groups in the company; and the balance of power between management and trade unions.
3. Prepare negotiating brief.
4. Negotiate to achieve best settlement in accordance with targets.
5. Reach agreement.
6. Implement.