Pay modernisation

Pay modernisation is one of the most challenging tasks facing public sector organisations. There is a widely recognised need for more efficient and flexible pay systems, and for recognition of individual contribution. For many public sector organisations, pay is the biggest area of expenditure; however it often receives little attention and is widely seen as being “too difficult” to change.

PricewaterhouseCoopers has a wealth of technical resources and experience which can be deployed to address this issue.

Potential issues

• Ensuring that pay and grading structures meet the needs of the organisation
• Developing an effective reward strategy
• Matching people and job roles as effectively as possible
• Gaining accurate and comprehensive information on market pay rates
• Ensuring that employees understand how they are affected by any pay modernisation programme introduced by the organisation

PwC services

Grade structure design

Review of existing pay and grading structures to assess whether they meet the organisation’s needs, involving analysis of alternative structures and implementation issues, including benefits and risks.

Performance-related pay/incentives

Helping to reward high performers ahead of weaker performers and designing programmes to create incentives towards better overall organisational performance.

The Monks job evaluation system

A competency-based system which measures the skills and competencies needed to carry out the job rather than tasks and accountabilities. Simpler and more flexible than many traditional approaches, and directly linked to the Monks pay database.

Pay benchmarking

The Monks pay database is one of the most comprehensive management pay database in the UK, with up-to-date data on basic salary and total reward for over 9,000 managerial and professional posts in over 600 UK organisations.

Communications

Use of communications specialists to ensure that employees have the information required to understand and buy into the changes that result from pay modernisation.