THE UPDATING OF WAGE POLICIES MOTIVATED BY THE PAY REGISTER
The updating of pay policies motivated by the pay register, as every company is finding the opportunity to review its remuneration policy and in many cases this has been the starting signal for changes in its compensation policies.
In today's context, where business strategy must be flexible, managers realise that pay policies must be consistent with it and also adapt to the context.
Obviously, if business interests and strategies change, it should not be conveyed via remuneration that the company remains the same.
Bearing this in mind, and assuming that nothing is perfect (not even remuneration models), the flexibility of companies' salary policies to adapt to the context is an increasingly evident necessity, as these policies must always support and facilitate the achievement of the company's mission and, therefore, the fulfilment of its objectives.
This is why HR managers always have to assess the different variables that will facilitate the adequacy of their company's salaries to the circumstances and environment:
- Conventional framework: reference to conventions, respect for covenants...
- Desired level of leverage of conventional salaries relative to the value of the job, now and in the medium to long term.
- Level of deviation from internal equity to be tolerated.
- Competitiveness vis-à-vis competitors' wages.
- Adaptation of the wage structure to the cost of living depending on the geographical location of service provision.
- Motivation of employees to encourage engagement, autonomy, flexibility, trust...
- Compensation of knowledge, skills and other individual aspects in each case.
It seems that the success of salary policies in a company will not only depend on a correct evaluation of jobs (an issue to be taken into account in the coming months, due to the obligation for companies with more than 50 employees to carry out an equality plan from March 2022), It has to be a true reflection of the company's values and has to be adapted to the needs of the employees (who are increasingly required to be more flexible) and to corporate interests (which are very focused on cost reduction due to the possible consequences of the current crisis).
Bringing all these interests together does not seem an easy task, but those responsible for remuneration policies have at their fingertips multiple (and increasingly more) tools that will allow them to optimise fixed costs without forgetting the alignment with the business strategy and the improvement of the salary conditions of their employees.
Social benefits: which companies can offer in addition to salary: health insurance, pension plans, programmes to cover study expenses, etc., improving the corporate image and generating strong differences between recruiters.
Training and development: to reduce the level of uncertainty of employees through actions that enable reskilling and upskilling, so that the employee can apply for a new job or can continue to occupy his or her job, even if the conditions of the job change.
They will not only make the employee feel that the company is counting on him or her, but will also make it easier for him or her to adapt to the labour market in the event that he or she leaves the company.
In the same way, access to better research materials and tools or subscriptions to important publications in their field are incentives that generate a feeling of empowerment in employees, which also directly benefits the company itself.
Emotional pay: the impact of a particular environment on employees carries an emotional charge that is as important as the pay itself.
Trust, respect, pride and fair treatment become tools that have a direct impact on increasing productivity and decreasing turnover.
Flexible remuneration: remuneration chosen by the employee and deducted directly from his or her salary: childcare vouchers, restaurant vouchers, gym subscriptions...
The right choice of a flexible remuneration package will make it easier for employees to cover some of their basic needs by adding an increase in their disposable income.
As we can see, an appropriate treatment of remuneration policies will lead to an improvement in the employee experience without incurring an increase in the wage bill.
In fact, with the new technological platforms for training and the management of social benefits and flexible remuneration, the costs of implementing these policies will generate minimal costs for companies.
At GM Integra HR we encourage companies to rethink their remuneration policies and we want to help them to update and manage them.
For more information, please contact us on 93 872 69 44 or 91.278 31 94.