Benefits
Benefits (ie the elements in a reward package other than basic pay) also need to be considered. The following typical questions should be considered, together with those that are appropriate for the business:
* What is the current cost of the benefits package and can this be sustained?
* Do you want to increase benefits and, if so, for which or all groups, or do you wish to reduce benefits and, if so, for which or all groups?
* Do you want to offer some flexibility Paid up members, or Pay as you go. on the benefits package and if so which benefits and for which groups?
* Do you wish to trade additional basic pay for additional benefits, or vice versa?
* Are your current benefits appreciated and desired by your employees, or are you wasting money on benefits which give no value to the individuals? You might like to do a simple survey to ascertain this.
* What does your market research suggest are important benefits to provide, if you are to remain competitive in your labour market/s?
Pay levels
This is the central issue. The items up to this point have set the scene for the pay review and deal with some of the specific issues that are raised as part of it. The questions below again are far from exhaustive but they do cover some of the critical points which might typically occur:
* From the standpoint of the business, by what amount can the pay bill rise? Consider turnover projections, market fluctuations and recruitment requirements.
* Do you wish to adopt a merit pay award, where individual pay rises are directly related to their job performance?
* Is it to be a percentage increase for each of the groups defined above or is it to be a fixed amount, thus potentially giving more to one group than another in percentage terms?
* As a result of the market intelligence on pay data for the various employee groups, do you need to make any market adjustments to protect against labour turnover and poaching by competitors?
A few tips
The CIPD suggest that private sector organisations use market data to influence their pay reviews, whilst the public sector use job evaluation and the manufacturing industry make their decisions based on their ability to pay and drive this through the collective bargaining procedure. Based on this assumption, the following information provides practical advice when faced with a pay review.
1. If negotiating with collective representatives, but also if discussing with senior management or a board of directors, ensure you allow yourself time to prepare your pay review presentation, as all involved will want to know the background to the pay review figures, such as turnover, profit and loss, absence, attrition, market data etc.
2. It may be worth collating previous years′ pay review data so that you can put your arguments into context.
3. If you are part of an international organisation, and head office is external to the UK, ensure the relevant decision makers are aware of relevant facts such as inflation and the term ‘cost of living’, London weighting if appropriate and current market data, as sometimes they are not fully up to speed with these factors, and don’t consider them when setting pay review budgets.
Advice specific to collective bargaining pay reviews:
1. Prepare the organisational climate well ahead of the pay review. If things aren’t going so well (failed targets, sales down etc) ensure employees are aware so that the reduced pay figure is less of a shock.
2. Ensure you are confident that the % range you have given to work within at your negotiations is agreed in advance. There is nothing worse than spending time in pay review negotiations only to find out that the budget has changed!
3. If you have “sister” sites that are in some way linked to your organisation, but perform their own pay review, keep in contact so that you are informed of their pay details.
4. Only consider a long term pay deal such as a two or three year agreement if you are financially able to plan this far in advance. If you go for this option, insert a clause that enables you to re-negotiate the deal in extenuating circumstances.
5. Use your relationship with your senior representative (convenor, lead employee rep etc) to work with you to gain consensus and acceptance.
6. Never give away an extra % for nothing! Take a broad perspective and look to gain something in return such as a reduced night shift premium or removal of a piecework bonus.
Bush league TV
Today, BushLeague.TV (www.bushleague.tv), is launching its online site video and web site for “dudes.” The site is backed by DECA, an online entertainment studio which is venture funded by Mayfield, General Catalyst, and Atomico. The new site is the latest for DECA, which is also behind the video podcasts for the popular BoingBoing blog site, CNET’s Dog and Pony Show, and other video podcasts and blogs.
The site will launch with regular segments, such as ‘24 Hour Video Game Review,’ a video game review featuring BushLeague correspondents playing a new game for 24 consecutive hours; ‘Bush League 101,’ a hilarious ‘how to′ segment geared at specific daily activities, such as planning a poker night and breaking into porn, ‘Gadget Slob, a funny videos, a mens lifestyle,’ breaking down all the coolest gadgets guys should have and ‘Can I Still Eat It,’ a nutrition segment that explores items in a guy’s fridge.