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Base Pay
Watson Wyatt research proves that base salary plays a critical role in the attraction, retention and motivation of key employees.
Base pay represents a significant element of compensation costs and employers are increasingly seeking to ensure this spend is
managed strategically so that it supports achievement of business goals. Watson Wyatt’s team of reward consultants work with
organisations to design base pay plans that effectively leverages this reward component to yield a real return on investment
and meet the needs of stakeholders.
Key Considerations:
Our consultants work with clients to address the following key issues when designing base pay plans:
- Cultural and organisational objectives.
- Reward strategy.
- Appropriate base pay model.
- Base pay budgeting.
- Cost control considerations.
- Market competitiveness.
- Internal equity.
- Link to job evaluation/job sizing mechanism.
- Salary range spread and overlap.
- Pay progression mechanism.
- Involvement / role of HR & line management.
- Confidence / capability in key supporting processes.
Outcomes:
Our consultants help organisations to design a base pay plan that:
- Reflects organisational goals and culture.
- Maximises return on pay bill (pension costs etc).
- Allows performance management to work.
- Facilitates differentiation for performance/contribution.
- Guards against pay drift.
- Maintains desired market position.
- Contains the hallmarks of good pay management; namely simplicity, equity, transparency and clarity.
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