Client
An international retailer with a UK Headquarters with a complex matrix decision-making structure for pay review.
Solution
- Led and supported the annual pay review.
- Examined pay review processes, systems, and data availability.
- Implemented processes for individual/team/company performance to be reflected within pay review in line with agreed principles.
- Provided both analytical support and project management support, liaising with HR teams globally.
Challenge
- The size and complexity of the organisation made pay review complex and challenging.
- The client lacked the resource to deliver annual pay review with vacancies in the team.
Impact
- An on-time, in-budget pay review that took into account the views of leaders and People team globally and build in both local trends, market rates for role and individual performance, leaving the in-house team with the tools and knowledge for future years.
"The Reward Heads team were a huge help at a critical time – without them we would not have been able to carry out this key activity. In fact, they were so good that we brought them back for a second year!"
Context
The client operates in a number of countries, with a UK Headquarters. With around 2500 employees globally, the requirements for annual pay review were complex and time-consuming. The client wanted to bring in resource that could work in collaboration with the existing team to ensure the pay review was delivered on time, on budget and in line with the company pay principles. They were looking for Reward knowledge and expertise to lead and advise plus a dedicated analyst to build and manage the tools required and to ensure any data was configured in a way that worked with both their HRIS and Payroll Systems. They also highly valued our deep experience in Retail.
The Problem
- The size and complexity of the organisation, notably in the way that pay review decisions were made in a matrix way, made pay review complex and challenging.
- The client lacked the resource to deliver annual pay review, both capacity and capability.
- Changes to the team in previous years meant a lack of corporate memory in the pay review processes.
Which meant:
- There was a risk pay review wouldn't be delivered on time without external help.
- Risks around pay review being delivered in budget and according to pay principles.
- Risks around lack of resource leading to reactive decision making/firefighting.
- Risk that employees would be disengaged and managers would be frustrated.
The Tension
HR wanted central Reward expertise to ensure the data that their customers were being asked to review was accurate, and that the process was smooth.
Finance needed accurate on time information that could be supplied to Payroll and was within budget.
Leaders needed to be confident in both the process and the approach taken that this was translating their goals and values and would land well.
What Reward Heads did
- Diagnosed the existing pay review process through looking at processes, systems and data available in the light of our previous experience in house and with other clients.
- Gave context by using market data through a pay benchmarking review to inform the pay review process from a market competitiveness perspective.
- Designed a separate pay increment process for UK manufacturing and warehouse staff.
- Implemented processes for individual/team/company performance to be reflected within pay review in line with agreed principles.
- Managed the end-to-end pay review process collaboratively with the inhouse Reward Team and the HR Business Partners, successfully delivering pay review to manufacturing, warehousing and office staff globally.
Business Impact
- Pay review delivered to Payroll on time and in budget in line with Board-agreed principles.
- People and Reward team increased knowledge of pay review processes and better tools in place.
People Impact
- Fair process behind pay decisions with individuals receiving pay increases at the expected time.
- Management input meaning individuals could understand their new awards.
Which resulted in …
Leadership were confident that their goals and values were translated into pay review outcomes to align to agreed market positioning and individual performance.
Reward team credibility was maintained and enhanced as experts in this area to deliver an on time, on budget pay review that met the needs to the business.
If this feels familiar …
Many organisations simply don't have the capacity or capability to run large scale pay reviews, especially where there is a requirement for local input or individual performance ratings, or where key members of the team have moved on.
