REMUNERATION PLANNING SYSTEM

We can assist you to develop a remuneration structure
and employee pay review system that will minimise employment costs
and help improve employee engagement.

To help 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:

• A Base Package (BP¹) for all employees in specified jobs;
• 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 the 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 BP ranges that reflect suitable market sector rates and your need for employee pay flexibility.

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

All Bands in the BP structure would be anchored to job family pay rates by location, and have the elasticity to match the nature of your business. The RPS would 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;
• Identify, evaluate and delineate benchmark positions throughout your organisation;
• Align your benchmark positions 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 (function) and location;
• Construct pay ranges for bands of positions, by function 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 functions, by location;
• Provide secure access to users throughout the organisation, filtered by function and/or location and/or department;
• Allow simultaneous multi-user decision making on individual pay settings using true pay & performance relativities;
• Present charts of actual employees' pay levels against band midpoints, by function and location;
• Monitor actual outcomes against remuneration budgets;

The RPS will provide a complete and streamlined solution to remuneration planning and employee pay reviews. Other features of the RPS include:

• A choice of two versions that will allow users to login via the internet, or operate the RPS within a corporate intranet
• All RPS modules are live entry screens in simple worksheet formats - reports can be printed from any module
• All market data and all employee records can be uploaded/downloaded from/to an Excel workbook.
• All users have access to common databases - any changes (and the user making a change) are recorded
• Each user has a secure ID and password allowing variable access and edit capabilities
• Major changes to a database (eg. deleting an employee record) can be limited to the RPS Administrator alone
• The Administrator can also trace the activity of all users and monitor actual pay variations to agreed budgets - all changes to the live database can be seen instantly
• Every "Pay Review" is saved - 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

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