Conducting a pay review requires a range of skills – including data analysis, data modelling and job evaluation. You will need to collate information (for example, salary surveys and national statistics) and establish a single, accurate market range for each job.
The technical knowledge required for pay reviews is critical. For example:
- To establish a market range, you will need to match both the internal and external pay data into a single structure;
- After unifying the structure, you need to apply conventions to collate data into one market rate/range;
- The identified pay ranges then need to inform your review – either based on statistical formulae or by delegating reward decisions to managers;
- Your decision making and sign-off processes need confirming;
- You need to run your pay reviews using spreadsheets or tailor-made software such as PayReview;
- The collated data needs distributing to relevant decision makers, and checked against available budgetary limits; and
- After sign-off, decisions need applying to payroll and communicating to staff as part of your employee engagement process.