Pay and Benefits in the Firm

The saying used to be “an honest day’s labour for an honest day’s pay”. But then what’s ‘honest’? Go back far enough and the theory was that a man should be paid enough to keep his wife and two kids; enough to keep those who would replace him in the workforce. But today, it’s about market forces and the idea that there’s a market price for each job. Determining how much to pay is therefore about analysing the labour market and setting up an equitable and fair pay and benefits structure.

Pay Strategies and Pay Models

Setting rewards in a firm is about developing a suitable pay model often comprising base pay, competence related pay and performance related pay. Each element needs to be determined for each job and then the wage or salary that each gets can be calculated. Within a firm, jobs need to be evaluated and the rewards balanced such that jobs of the same responsibility, technical complexity and scope are paid similar wages. Equity is essential and avoids claims of discrimination and favouritism.The way someone is paid is set out in the employment contract. How this is done is complex, particularly when specifying how and under what circumstances bonus is earned and paid.TimelessTime has built pay models for many firms and is expert in helping managers determine how much to pay.

Company Cars, Pensions and Other Employment Benefits

Benefits are just that – for both employer and employees. Whilst private health insurance may appear a cost, loss of effort from a key staff member for many weeks waiting for and recovering from NHS treatment can be a massive financial loss. The firm can balance benefits and salary to achieve an attractive composite that costs the employer less than a market rate of reward. It’s all about being clever about building a pay and benefits package.

TimelessTime has many years’ experience in building benefits packages from company cars to permanent health assurance.Getting the pay and benefits package right attracts staff at the hiring stage. It bolsters the psychological contract, enhancing commitment to the firm, and it can save the firm money in the long term.

TimelessTime understands how good foundations can be built upon to gain enhanced commitment and can set a programme to win tangible increase in competitive advantage though commitment.

on 01825 724179 for a free review of your pay and benefits package and to see how it can be cost effectively improved to help you recruit, motivate and retain staff.