In the middle of redundancy programmes, HR teams can overlook the impact restructuring has on reward strategy. But, we all know that integrating and aligning key HR practices is vital to support business objectives.
To assist HR teams, we have developed a six stage model for dealing with the reward outcomes of major organisational change, detailed in figure 1.
Stage 1: Review changes to the size and structure of your job roles
As organisations shrink and structures and finances are reorganised, the boundaries of many job roles are likely to be extended. Both the depth and breadth of roles may change, and effective job design and evaluation techniques will be needed to review these changes.
Stage 2: Check the validity of your pay and grading structure
Consider whether or not the organisation's current pay structure is flexible enough to accommodate these different job roles. What will be the impact on any grades or levels? How will pay and career progression be affected?
Stage 3: Obtain accurate and current market data
Have internal job relativities been affected by changes to roles and pay structures? With a stagnant pay market it will be essential to benchmark pay levels so that you can keep your best people when the economy starts to recover.
Stage 4: Review the cost effectiveness of your benefit and incentive scheme provisions
Are you getting the best rates for benefits? From re-broking benefits to renegotiating bonus schemes, organisations can create greater cost effectiveness in their overall reward package.
Stage 5: Re-communicate the value of your total reward package
Work hard to communicate the total value of your reward package; get these messages out to your staff in clear and fresh ways.
Stage 6: Ensure your reward strategy is equal pay compliant
If you do make changes to roles and reward structures, check that these will be applied fairly. Equal pay analysis will help you test the effectiveness of any changes made and provide a benchmark for measuring future progress.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
