How to develop a remuneration policy in the company?

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on reddit
Share on stumbleupon
How to develop a remuneration policy in the company?

Table of Contents

The job market has become a highly competitive environment for both employees and employers. If a good salary was enough to hold a professional for years in the organization, today it is no longer. For this reason, many companies have been investing heavily in good remuneration policy.

In this sense, through the remuneration policy, there is an increase to the salary through benefits and profit sharing, for example.

As a result, the remuneration policy went from unnecessary spending to a mandatory business strategic instrument. It's a motivational tool able to influence the decision of a professional about staying in a company or not.

However, there are numerous challenges to implementing a good remuneration policy. In this article we will talk about the importance of the remuneration policy and give tips on how to build it.

What is remuneration policy

The remuneration policy can be described as a set of strategies which aims to reward employees for their work.

Through the benefits policy, the company is able to motivate your employees and consequently directly impact their productivity. Facilitating the attraction and retention of talents in the company.

“The remuneration system is the set of coherent and aligned instruments with the company's strategy, of a material and immaterial nature, which are the counterpart of the contribution made by the employee to the results of the business, through his professional performance and are intended to reinforce the your motivation and productivity ”. (CÂMARA 2000, apud Rito 2005, p.45).

6 tips for implementing a remuneration policy

To build a good remuneration policy, it is important to pay attention to points such as: job and salary plan, benefits, commissions and bonuses and much more. Below we will talk about each one of them.

Create a job and salary plan

The first step in building a good remuneration policy is to know how the company works. This is based on the assumption of describing jobs, salaries and functions well, in order to evaluate remuneration and benefits.

With this information, in partnership with the employees and managers of the sector, the remuneration policy becomes more assertive. Since with these data in hand it is easier to create specific strategies for each position.

In addition, a Plan for jobs and wages allows employees to have a broad view of possible promotions and growth opportunities within the company.

Develop a benefits policy

90% of professionals consider professional benefits as a great motivating factor to keep them in the company. Salary is a priority for only 20%, revealed a Insper research.

Therefore, a good remuneration policy necessarily involves a benefit plan effective. Medical insurance, food stamps, cultural voucher, work in home-office they are some of the most common benefits offered by organizations.

The ideal in this case is to conduct an internal survey so that employees can vote on which benefit is most desired internally. This way, strategic action becomes more effective.

Offer participation in Profits and Results

Dedication and commitment to achieve goals and objectives. Every company dreams of having an engaged and productive team. Within this scenario, there are several incentives for the employee that can enhance the productivity.

In a policy of benefits to Profit and Results Sharing (PLR) can be a great option. This is because within this strategy, employees can feel even more important within the company and recognize the direct impact they have on results.

Thus, the professionals “wear the shirt” of the company with greater interest, since they know that the profits of the organization will also give him a positive return financially and professionally speaking.

Value work with commissions or bonuses

A commission or bonus is nothing more than an increase in payment made by the employer as a way of recognizing and valuing the work done by the employee.

It is usually linked to a pre-determined achievement of goals and results by the company. It is a variable remuneration and can occur monthly, bimonthly, quarterly and annually, according to criteria created by the organization itself.

It is important in this case of commissions and bonuses, within the remuneration policy, that the company makes it clear to employees how this mechanics works.

In view of that, he will know exactly the path he needs to follow in order to achieve the goals set for him to achieve this benefit.

Enable wage advance

According to SerasaConsumidor, about 41 million UK citizens would get a loan to pay for any expenses that came up unexpectedly.

With this in mind, many companies have adopted wage advances in their remuneration policy.

With it, the employee receives an advance payment for the services provided and manages to avoid possible contingencies with bills and debts. One that gains strength in the market is the on-demand salary.

There are no specific dates for the employee to receive an advance. The employee himself is free to ask for a proportional amount of his salary even if he has only worked for a week.

In addition to being a strategy that leaves room for labor flexibility, wages on demand are object of engagement and appreciation of employees. It is also a demonstration of the company's concern with the personal well-being of the employee.

Measure stock spend

The implementation of a remuneration policy requires the company feet on the ground. It’s no use having a great idea on paper if the plan is ifinancially viable for the organization.

The ideal is that the remuneration policy is a long-term strategy and that your company has the means to bear the costs.

Attempting to put it into action without prior planning or a value destined for this process can dirty the company's image.

Because, it will not be able to fulfill agreed, pay bonuses, benefits and etc., and may even generate future labor lawsuits.

Remuneration policy: essential competitive differential

The remuneration policy is a essential strategyl, both for those looking to increase their market competitiveness and in attracting and retaining talent. In addition, remuneration policy actions have a sense of professional appreciation.

They are rewards in addition to the salary that has a high motivational power, directly impacting the results. However, a good remuneration policy requires the company planning, which makes up a thorough analysis of investments and expenditures.

It is crucial to have a broad view of the market and competitors and to assess where the company wants to go with the implementation of the benefits policy and what instruments will be needed to achieve it.

In addition, it is essential that the entire strategy is properly aligned with the organization's employees. The entire remuneration policy needs to be transparent and fair in order to be truly assertive.

Do you want to stay on top of the best HR and management content on the market? Follow HR Consultant UK on social media (Facebook, Instagram, Twitter and LinkedIn).

admin

admin

Leave a Replay

Why HR Consultants UK!

HR Consultant UK Offers HR advice for local businesses in the UK. Our HR Consultants Near Me Page will help you get in contact with local HR Consultancy.

Alternatively, view our list of cities covered by HR experts.  Its time to get all your HR issues solved! 

Enjoy the Blog!

Recent Posts

Follow Us

Sign up for our Newsletter

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit

Where do you need an HR Consultant?

United Kingdom or
USA?!

Get local HR advice in the UK and USA?

So that we can get you through to the right HR Consultant, please let us know what your location is.

Book HR Consultants
Get Quotes From Local HR Consultants

Talk with a Local HR Consultant in the United Kingdom Or United States.