Promote internal transparency and consistency to uphold fair pay
In contrast, 45 per cent of pay increases are driven by internal relativities (UK Reward Management Survey, autumn 2018). By ensuring that equal pay and transparent pay structures are in place, organisations can make consistent reward decisions. Parity of pay, where jobs are paid equivalently if they involve the same skills or effort but may have different job titles, ensures that everyone in the organisation feels that they are being appropriately rewarded for their work.
An objective framework avoids discretionary increases where some managers may be more generous than others or better at having performance management discussions that feed into the reward decisions being made. 56 per cent of third sector employers have had to offer new recruits salaries that conflict with those paid to existing employees. A framework with which to base these decisions ensures fairness and equal opportunities for all.