Salary reviews are an area that can strike fear into the hearts of many employers. Employees sometimes “expect” an annual pay rise, particularly if rises are making the headlines on the news. As an employer, salaries are probably one of your biggest costs therefore it is essential to pay employees correctly so that you attract and retain talent, but you also contain costs to a reasonable level. This is not easy to achieve, but with a little planning, the common pitfalls can easily be avoided.
James House HR can help you review you current salary and benefits packages and advise on future wage increases or amendments to packages. Once you have salary guidelines in place, you will probably find it far less difficult to deal with salary queries for individual employees and requests for salary reviews.
Through actively managing the salary review process, you can ensure that the process is a positive, rather than a negative experience for all employees.
Frequently Asked Questions
What is “salary drift”?
Salary drift occurs when you simply give across the board rises year after year. This can cause the gap between higher and lower paid employers to become larger with every year that passes and ultimately leads to a mismatch between skills and remuneration. James House HR can help you conduct a thorough review of your salary and benefits arrangements so that you avoid salary drift.
Can I reduce wages?
This is not an entirely easy process and you will need to seek specialist advice. We are happy to discuss your outline plans with you so that you can consider whether this is a route you need to take. Alternatives such as “red-circling” (holding wage increases) can sometimes be a more successful way forward.