REMUNERATION PLANNING SYSTEM

The RPS will design your remuneration structure
and establish an employee pay review system
that will help minimise employment costs and improve employee engagement.

To sustain their competitive advantage, most market leaders deliberately align their remuneration management practices to their business strategy. Consistent with the approach taken by these companies, our Remuneration Planning System addresses:

• An individual Base Package (BP¹) for all employees not in collective agreements;
• A Market Alignment Policy that defines BP targets for expected performance;
• Precise delineation of benchmark positions that will fairly represent clusters of similar jobs;
• Market sector pay rates (from multiple sources) that match all benchmark positions;
• Market alignment to the performance of the least experienced (still developing) employees, up to the most capable (best performing) employees;
• Employee pay ranges around each BP target to reflect these performance differentials;
• Individual pay increases based on performance and current pay position in the BP range.

The Remuneration Planning System (RPS) will help ensure that your business strategy will be properly supported by your remuneration management practices. For example, the RPS will diagnose your data about your business environment & strategy and propose a BP structure that will reflect suitable market sector rates and your need for employee pay flexibility.

The backbone of the RPS is a BP range for every employee - individual BP relativities are measured with compa ratios. Company budgets, relative performance and compa ratios propose how fast an employee should move up his/her BP range. This approach is widely accepted as good (cost effective) remuneration management.

The main components of the RPS are outlined in the following chart:

All Band ranges in the BP structure can be anchored to job family pay rates by location, and have the elasticity to match the nature of your business. The RPS can also guide your pay review decisions by providing a fair and accurate comparison of employees' pay and their performance to "market relevant" pay ranges.

The key features of the Remuneration Planning System include integrated processes to:

• Diagnose your business environment and guide your market pay alignment & elasticity policies;
• Select benchmark positions from a comprehensive database already aligned to common survey jobs;
• Evaluate and delineate benchmark positions throughout your organisation;
• Align these benchmarks to imported market survey data from multiple sources;
• Adjust market pay rates for survey age and your remuneration review cycle;
• Differentiate market pay rates by job family and location;
• Construct BP ranges for bands of positions, by job family and location;
• Upload, analyse and model your employees' pay & performance data.
• Quantify the risk of anomalies - in particular, low paid/ high performing employees;
• Construct remuneration budgets for all departments or job families, by location;
• Provide secure access to users throughout the organisation, filtered by job family and/or location and/or department;
• Allow simultaneous multi-user decision making on individual pay settings using true pay & performance relativities;
• Automate the submission of recommendations to up-line managers;
• Present charts of actual employees' pay levels against band midpoints, by job family and location;
• Monitor actual outcomes against remuneration budgets;

The RPS will provide a complete and streamlined solution to remuneration planning and employee pay reviews - forget about the problems caused by disseminating and merging worksheets. Other features of the RPS include:

• A choice of two versions that will allow users to login via the internet, or to operate the RPS within a corporate intranet (installed on a network server using Microsoft .NET (C#) and an MSDE / SQLServer Express database)
• Provision for global applications using multi-national market data and a currency exchange rate facility
• Live entry screens in simple worksheet formats in all RPS modules
• Importing and exporting unlimited market data and all employee records from/to Excel worksheets
• Immediate and concurrent access to common databases by all users
• A secure ID and password for every user that allows variable access and edit capabilities (eg. a manager may only view subordinate staff and only edit their recommended BP)
• Restricting major database changes to the RPS Administrator (eg. deleting an employee record)
• Recording the activity of users and limiting actual pay variations to agreed budgets - all changes to the live database can be seen instantly
• Saving every "Pay Review" - all enduring data (eg. alignment of benchmarks to survey jobs) will roll forward into a new Pay Review

For a demonstration of how the HaRe Group RPS may be applied to your specific requirements, please contact Simon Hare on (03) 9521 9132, or at   .

¹ BP includes all fixed remuneration items, such as base salary, allowances, superannuation, cars and other benefits, plus the full cost of Fringe Benefits Tax - BP is widely accepted as the most fair and objective measure of fixed remuneration practice

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