UPDATING SALARY POLICIES MOTIVATED BY THE PAY REGISTRY
The updating of salary policies motivated by the pay register, since every company is finding the opportunity to review its pay policy and in many cases has meant the starting signal for considering changes in its compensation policies.
In a context like the current one, in which the business strategy must be flexible, managers realize that salary policies must be consistent with it and also adapt to the context.
Obviously, if business interests and strategies change, it should not be transmitted via pay that the company remains the same.
Taking this into account and assuming that nothing is perfect (not even the pay models), the flexibility of the salary policies of companies to adapt to the context is an increasingly evident need, since these policies must always support and facilitate the achievement of the company’s mission and, therefore, the fulfillment of its objectives.
This is why HR managers must always assess the different variables that will facilitate the adaptation of their company’s salaries to the circumstances and environment:
– Conventional framework: reference to agreements, respect for pacts…
– Desired level of leverage of conventional salaries with respect to the value of the position, at the present time and in the medium and long term.
– Level of deviation that they want to tolerate with respect to internal equity.
– Competitiveness compared to the salaries of the competition.
– Adaptation of the salary structure to the cost of living depending on the geographical location of the provision of services.
– Motivation of employees in order to promote engagement, autonomy, flexibility, trust…
– Remuneration of knowledge, skills and other individual aspects in each case.
Among others.
It seems that the success of salary policies in a company will not depend only on a correct evaluation of jobs (an issue that must be taken into account in the coming months, due to the obligation of companies with more than 50 employees to carry out an equality plan from March 2022), but it must be a faithful reflection of the values of said company and must adapt to the needs of employees (who are increasingly required to be more flexible) and to corporate interests (very focused on cost reduction due to the possible consequences of the current crisis).
Combining all these interests does not seem like an easy task, but those responsible for remuneration policies have at their fingertips multiple (and increasingly more) tools that will allow them to optimize 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, programs to cover study expenses… improving the corporate image and generating strong differences between employers.
Training and development: reducing the level of uncertainty of workers through actions that enable reskilling and upskilling, so that the employee can apply for a new position or can continue to occupy his or her job, even if the conditions of the same change.
They will not only make the employee feel that the company counts on him or her, but will also facilitate his or her adaptation to the labor market in the event of a separation from the company.
Similarly, 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 that, in addition, directly results in benefits for the company itself.
Emotional salary: the impact that a certain environment has on employees carries an emotional burden that is just as important as the salary itself.
Trust, respect, pride or fair treatment become tools that directly influence the increase in productivity and the decrease in turnover.
Flexible remuneration: that which the employee chooses and is directly deducted from his salary: childcare vouchers, restaurant vouchers, gym memberships…
A correct choice of the flexible remuneration catalogue will facilitate the coverage of some basic needs of employees, adding an increase in their available salary.
As we can see, an appropriate treatment of remuneration policies will generate an improvement in the experience of employees without incurring an increase in the salary item.
In fact, with the new technological platforms for training and management of social benefits and flexible remuneration, the costs of implementing these policies will generate minimal costs for companies.
At GM Integra RRHH we encourage companies to rethink their remuneration policies and we want to help them update and manage them.
For more information, you can contact us at 93 872 69 44 or 91.278 31 94.