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

Burnley aerospace firm eyes global growth with new CFO Rob Smith Of Velocity Composites

Burnley aerospace firm eyes global growth with new CFO

20 Jun 2024

2

PR agency wins third consecutive award for public sector work Viva Wins Third Public Sector Award

PR agency wins third consecutive award for public sector work

20 Jun 2024

3

Crowberry Consulting presents Society for the Environment Awards 240604-SocEnv-Awards-34.jpg.jpg

Crowberry Consulting presents Society for the Environment Awards

21 Jun 2024

4

Seeking accountants to drive change in Lancashire Chris Brown - Brown & Co

Seeking accountants to drive change in Lancashire

21 Jun 2024

5

Case study: RfM Transform and Peter Reed International HR Trends from RfM Transform (22)-min.png.png

Case study: RfM Transform and Peter Reed International

21 Jun 2024

Lbv116 Ltb Strip980
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
RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

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

09:00 - 16:30

Free 4 Week Growth Ignition Coaching Programme
UCLan Primary logo RKE.png.png
LBV Hub Seminars
19 Jun 2024 - 03 Jul 2024

Free 4 Week Growth Ignition Coaching Programme

Online, Preston, PR1 2HE

12:00 - 13:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
21 Jun 2024

Business Networking in Preston - BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

June Preston Freelancer Meet-Up and Coworking
Screenshot 2024-06-13 at 14.03.18.png.png
LBV Hub Networking
21 Jun 2024 - 21 Jun 2024

June Preston Freelancer Meet-Up and Coworking

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Moonlight & Memories Walk 2024, St Catherine's Hospice
Moonlight2024.jpg.jpg
LBV Hub Fundraisers
22 Jun 2024 - 22 Jun 2024

Moonlight & Memories Walk 2024, St Catherine's Hospice

St Catherine's Hospice, Preston, PR5 5XU

18:00 - 23:00

Yellow Day 2024 St Catherine's Park
YRD 2024_TV screen_V02.jpg.jpg
LBV Hub Fundraisers
23 Jun 2024

Yellow Day 2024 St Catherine's Park

St Catherine's Hospice, Preston, Lancashire

10:45 - 16:00

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
23 Jun 2024

Chamber Breakfast Networking

Whitewells Catering Supplies, Heysham, LA3 2XE

08:00 - 10:00

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
25 Jun 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Adult Mental Health First Aid - Online Course
Youth MHFA.png.png
LBV Hub Seminars
25 Jun 2024

Adult Mental Health First Aid - Online Course

MS Teams, N/A, N/A

10:00 - 12:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
25 Jun 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
26 Jun 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
26 Jun 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 08:00

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 LBV116 Online Graphic
Subscribe now

Weekly news bulletin