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Your pay structure doesn’t fully reflect organisational values and performance measures, and you think this could affect staff retention.

So you want clarity that you’ve got the right pay arrangements in place, driven by business strategy and values. You also want to show employees clear links between business strategy, performance metrics and reward. Here Paydata outline the essential steps to take when developing appropriate pay structures for your organisation.

Developing pay structures for the external labour market


Identify the behaviours

Establish the behaviours and performance metrics you want to drive, based on your business strategy and values.


Agree pay elements

Agree the pay elements required (such as base salary, bonuses/commission and long-term incentives such as LTIPs or share schemes).


Assess market practice

Assess market practice to clarify your policy and gauge typical reward levels for achieving and exceeding goals.


Model actual pay practice

Model actual pay practice against your policy position, to test where you are and what actions are needed; this also involves exploring possible underlying issues, such as possible bias in payment practice.

How can Paydata help you develop appropriate pay arrangements?

We offer a range of services to help you review your approach and develop appropriate pay arrangements and reward packages. Examples of relevant services include:

Reward Strategy

Reward strategy design supports your desired behaviours and performance metrics.

Bonus and Incentive Scheme design

Bonus and incentive scheme design can align employee behaviours and results.

Job Matching

Match your jobs to our data sources, third party sources and different methodologies.

Equal Pay

Equal pay audits to identify possible pay discrimination problems and build positive employee relations.

Pay Benchmarking

Pay benchmarking establishes what works elsewhere and informs how you can agree appropriate levels for reward setting.

Pay Modelling

Pay modelling gives you a clear sense of where you sit in the market in terms of pay levels and can create appropriate salary ranges and benefit practices.

Job Evaluation

Job evaluation allows you to benchmark like-for-like jobs and gets your internal pay management on a solid footing.

Would you like to know more about how your employees' pay compares to the external labour market? Get in touch.

In the meantime, read more about the different types of pay structures that might suit your organisation.


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