HR and employment law clinic: Using pay rises to succeed

As many of our clients have successfully grown their green shoots into real bottom-line growth, 2015 has seen a marked increase in the return of the pay review to the HR agenda.

By Tracey Murphy, Sarah Booth HR.

Whilst this is most certainly a positive step in the company’s development, the method for deciding who gets paid what can be a huge headache for business owners.

Whilst the blanket percentage increase is simple to implement it can be incredibly demotivating particularly for those star performers. A recent survey that Sarah Booth HR conducted in one workplace revealed that most staff saw the past pay decisions as “rewarding failure” as many poorer performers were also rewarded.

At the same business we surveyed, the staff (notably the higher performers) were requesting that the company implemented performance-related pay.

Providing the business designs a system that is suitable for the operating context they are in and it involves managers and staff in its design and rollout, performance-related pay systems can be an extremely rewarding motivational tool.

The steps to implement a performance-related pay system will require good HR expertise, to guide the business through the process of ensuring all roles are clearly defined; benchmarking the roles and salaries to the external market; agreeing appropriate pay scales and to roll out a simple system for agreeing individual and team key performance indicators and objectives to drive the performance levels upwards. These are all important components that make up the design of a robust performance-related pay system, yet the real success is in the implementation and the ongoing coaching/training of managers to help them to stay consistent. The challenge for HR and the business owner is to keep the system alive and relevant as the business grows and evolves.

Enjoyed this? Read more from Lancashire Business View

Latest news

1

New tenant for former Mad Giant food hall in Preston News Owners At Unit 6 Get Acquanited With Their Neighbour Feathers Mcgraw

New tenant for former Mad Giant food hall in Preston

10 Nov 2026

2

Apprentice wins Medallion for Excellence at skills Olympics Arc Shelby Fitzakerly Painting And Decorating Apprentice 333442 12 May 2024

Apprentice wins Medallion for Excellence at skills Olympics

10 Nov 2026

3

Partnership to deliver new legal services T Levels in Lancashire Brabners And Aldridge Foundation Representatives At Launch Event Cropped

Partnership to deliver new legal services T Levels in Lancashire

10 Nov 2026

4

Sustainable Energy First appoints Jonquil Hackenberg Jonquil Hackenberg Photo

Sustainable Energy First appoints Jonquil Hackenberg

10 Nov 2026

5

Plans for 110-bedroom hotel in Lancaster take step forward Premier Inn Lancaster

Plans for 110-bedroom hotel in Lancaster take step forward

10 Nov 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 17:00

Lancashire Net Zero Conference 2027
NZC27 Social 1200x800Generic 1 11 Feb 2027

Lancashire Net Zero Conference 2027

The Wellbeing Farm, Edgworth, Wheatsheaf Hill Farm, Plantation Road, BL7 0BY

09:30 - 02:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Preston Tech Connection: People Behind The Ideas
11 Nov 2026

Preston Tech Connection: People Behind The Ideas

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:03

The Business Network Central and East Lancashire
12 Nov 2026

The Business Network Central and East Lancashire

Longridge House, Preston, PR3 2TB

11:30 - 14:15

Ai in business: protect, innovate & grow
Door4 Forbes 12 Nov 2026

Ai in business: protect, innovate & grow

Brockholes Nature Reserve, Preston, PR5 0AG

09:00 - 12:00

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity
N123_1200x400px_Title&Subtitle (1).png.png 12 Nov 2026

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity

Leighton Hall Estate Storrs Lane, Carnforth, LA5 9ST

09:00 - 16:00

Lancaster District Business Support Expo
Lancaster And Morecambe Logo 1 18 Nov 2026

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

09:00 - 13:00

Great Winter Pie & Pea Social
Lancaster And Morecambe Logo 1 19 Nov 2026

Great Winter Pie & Pea Social

The Royal Hotel & Bar, Lancaster, LA1 1YD

17:30 - 20:00

Neurodiversity Awareness and Support Training
20 Nov 2026

Neurodiversity Awareness and Support Training

Neuro Spark Training Solutions, Burnley , BB11 2AS

09:00 - 16:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin