Remuneration

8. Pay Reviews

Pay reviews need to be regular and should be kept separate from performance reviews.

8.1 Aim for a steady increase in real earnings, over the months and years, for employees whose performance is satisfactory.

8.2 Build in a performance-related element for every employee, including juniors.

8.3 Ask people what their needs are.

• A dissatisfied employee will not always be won over by a pay rise, even a large one.

8.4 Make a clear distinction between promotion and increases in pay for the job.

8.5 If there are trade unions in the workplace, involve them in reviewing the operation of your pay structure.

8.6 Whatever you pay, it must be based on equal work of equal value; and this applies to bonuses and commissions as well as basic rates of pay and salary.