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

Royal Navy launches Level 5 healthcare apprenticeship with University of Lancashire Royal Navy visit the theatre

Royal Navy launches Level 5 healthcare apprenticeship with University of Lancashire

02 Apr 2026

2

More acquisitions in the pipeline for Chesnara Steve Murray - Chesnara

More acquisitions in the pipeline for Chesnara

01 Apr 2026

3

East Lancashire Learning Group tops national achievement rate tables Lisa O'Loughlin

East Lancashire Learning Group tops national achievement rate tables

31 Mar 2026

4

The grate comeback of Butlers Gill and Matthew Hall

The grate comeback of Butlers

31 Mar 2026

5

Retrofit contractor appoints new social value manager Angela Jones Social Value Manager

Retrofit contractor appoints new social value manager

31 Mar 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
AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36 Outdoor Elements Logo1920x1008
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV Magazine Networking Events - SAVE THE DATES
Jan/ Feb Networking Event - Talking
Networking
14 May 2026

LBV Magazine Networking Events - SAVE THE DATES

Lancashire

08:30 - 10:30

Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026 - 17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

RISE - a tailored 6 month leadership programme for women across the North West
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
15 Apr 2026 - 15 Apr 2026

RISE - a tailored 6 month leadership programme for women across the North West

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central and East Lancashire
LBV Header (31).png.png
LBV Hub Networking
16 Apr 2026 - 16 Apr 2026

The Business Network Central and East Lancashire

Mytton Fold, Blackburn, BB6 8AB

11:30 - 14:15

Sickness Absence: key actions for your business
Logo.jpg.jpg
LBV Hub Seminars
22 Apr 2026 - 22 Feb 2026

Sickness Absence: key actions for your business

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Freelancer Meet-Up April
April Freelancer Instagram size.png.png
LBV Hub Networking
23 Apr 2026 - 23 Apr 2026

Freelancer Meet-Up April

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 00:00

Vibe Coding: "Who owns what when no one wrote the code?"
April PTC Banner.png.png
LBV Hub Networking
28 Apr 2026 - 28 Apr 2026

Vibe Coding: "Who owns what when no one wrote the code?"

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Manufacturing for Tomorrow Club
Example.png.png
LBV Hub Seminars
30 Apr 2026 - 30 Apr 2026

Manufacturing for Tomorrow Club

University of Lancashire, Preston, PR1 2HE

09:00 - 11:30

Dazzle & Decadence
Dazzle & Decadence TryBooking Header.png.png
LBV Hub Fundraisers
30 Apr 2026

Dazzle & Decadence

Ainsworth Jewellers, 57-59 Darwen St, Blackburn, BB2 2BW

18:00 - 20:00

Blackburn Beer and Gin Festival 2026
Blackburn Beer and Gin Festival 2026
LBV Hub Social
01 May 2026

Blackburn Beer and Gin Festival 2026

BB1 8NB

17:00 - 23:00

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin