Staff make Net comparisons on pay levels

first_imgStaff make Net comparisons on pay levelsOn 15 Feb 2000 in Personnel Today Previous Article Next Article Comments are closed. Edward Dimbylow reports from the annual Institute of Personnel Developmentcompensation forum The wider availability of information on earnings will lead to an escalationof pay demands, Nicki Demby of Arthur Andersen told the conference.Giving her predictions on the future trends in pay and benefits, she saidthe growing amount of data available over the Internet was making it easier foremployees to find out what the industry norm is for their job. “We couldhave escalation purely brought about by the transparency of pay data,” shesaid.Mainstream professionals will soon be comparing their pay rates in the sameway as footballers and company directors.Demby drew a comparison with the publication of the Greenbury report on thehigh levels of directors’ pay which was followed by a sharp increase indirectors’ salaries. One explanation for this is that the greater transparencythe report brought led those who felt underpaid compared with their peers toseek a pay increase.But she warned that many of the statistics currently being produced werevery raw and could not necessarily be relied on.”I have a real problem with pay data today,” she told delegates.”HR professionals need to be much more critical of it.”You need to be clear where it comes from and the relevance it has toyour people and the market you are operating in.”Demby added that the UK was no longer an isolated island market. She pointedout that of the top 30 companies in the UK, over half had a US citizen on theboard.But she warned against the assumption that the US pay the highest rate.”They do not necessarily pay them more – they just pay themdifferently,” she and reward for generation XNicki Demby warned delegates that they should consider adopting new methodsfor rewarding 18 to 34-year-olds to maintain commitment and energy.Performance related rewards should be tied to particular projects ratherthan delayed to the end of the financial year.But Demby said it would be wrong to assume generation X is solely motivatedby money – an equally big driver can be opportunities to try new things and toreceive training. Feedback is important but should not be wrapped up in flannel.Save and share letdownSetting up a save and share scheme for employees could have a negativeaffect on motivation and loyalty if your company has a volatile share price,Terry O’Neill, European HR director of software implementation companyCambridge Technology, warned delegates. In a contribution to a session oninternational share schemes he said the price of stock can plummet in the timeit takes an employee to sell a share allocation. This raises the possibility that employees’ expectations of profit will notbe met. “It could have the opposite of the desired effect to increasemotivation,” he said. More to broadbandingThe hierarchical and narrow graded pay structures typical of the 1970s and1980s are being replaced by broadbanded pay schemes, according to research bythe IPD. Organisations are using broadbanding – which typically means there arefewer than six pay bands – as a basis for planning career development processesinstead of just a means of delivering pay. The study warned communication withstaff through workshops and focus groups is vital to making new systems work. Related posts:No related photos.last_img

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