Written by Lyn Brieseman on June 23, 2020.
At Strategic Pay, we know money is tight given the current environment, and restraint during the annual salary review will be required in most organisations. Our experience with remuneration and rewards indicates that instead of across the board increases (including zero increases), organisations should be targeting specific groups. With highly restrained pay review budgets, alternative approaches to the annual salary review will need careful thought and complex modeling to ensure the limited budget is distributed appropriately.
Three areas merit special attention when considering your annual salary review in this environment:
- Low paid and front line staff
- Equity reviews
Our meta-analysis shows, however, that considering base pay alone is not enough as gender disadvantage is sometimes identified only when you include benefits, incentives, and other forms of reward in the analysis. To fully understand disadvantage you need to have a comprehensive set of information to enable the data to be modeled and tested on a complex range of factors, including considering the total reward package – benefits, opportunity, overall treatment at work, as well as considering inequity by gender, ethnicity, and potentially other criteria.
Strategic Pay can provide support for the above using a full range of models and frameworks, tools and resources including varied job sizing approaches, comprehensive New Zealand remuneration market information and independent advice based on extensive experience, our salary management, and remuneration modeling software, RemWise, gender equity analysis tools, and expertise, and our breadth and depth of knowledge about the New Zealand rewards and remuneration scene.
Now it is more important than ever to stay in the loop and understand the best practice annual salary review processes. With this in mind, we have created our new “Annual Salary Reviews in times of Crisis” workshop. This 90-minute session will help you gain an understanding of the different approaches to the annual salary review and enhance your capability to make objective remuneration decisions considering timing, how to distribute the salary budget fairly and how to identify and retain critical employees in a time of limited resources.
Contact us at email@example.com or regional contact details can be found here.