Realigning reward to drive change and improve engagement

The project involved a high level of collaborative working between CKH and Paydata, to deliver the required results against very tight timescales. Paydata led most of the research and reward policy design work, whereas CKH led the organisation design, communication and contract-related activities.

Our approach is to deliver evidence-based solutions. We suggested that CKH should undertake a discovery project to make sure there was absolute clarity about the changes required and that a wide cross-section of views were considered.

Through a series of interviews, questionnaires and workshops we clarified the cultural changes CKH desired, the reward drivers they wanted to focus on, and what needed to change from the current approach to bring this about.

Based on this work we made a number of key recommendations:

• Develop a function-based job family structure, underpinned by our PAYgrade factor points-weighted job evaluation system;
• Introduce a pay ladder made up of fixed pay points, and hang the job family levels off the ladder, so they align to different market benchmarking data sources;
• Adopt a skills-based pay system, whereby progression through the pay points is linked to skills development;
• Review the bonus structure to ensure it is adding value and supporting the required behaviours;
• Review a number of benefit areas, in order to bring them into line with best practice;
• Redesign the performance management process to increase its effectiveness; and
• Improve communication of the employee value proposition, by introducing total reward statements.

Based on these recommendations we developed the job family framework. In the process we evaluated around 120 roles, covering the whole organisation. We also carried out all the benchmarking work, created the pay ladder, and determined where each family level should hang off the ladder.

"At CKH we are very proud of the fact that the Pay and Benefits project was delivered to time and budget, with all employees signing contracts reflecting their new terms and conditions, without exception.

"Paydata has proved to be a very effective reward partner for CKH, sharing their expertise generously, challenging us when needed and at all times supporting us to get the right solution for our organisation.”