Set the right pay rates

Introduction

If you intend to have people working for your business, you need to set rates of pay that will:

• encourage people to apply for your vacancies
• keep those working for you happy and motivated
• ensure you don't fall foul of the law or end up in an employment tribunal

Setting suitable rates of pay and deciding on pay systems are major decisions, which will have long-lasting impact.

This guide covers the factors to bear in mind when setting pay rates, including equality, equal pay, discrimination, motivation, competitiveness, recruitment and retention. It also describes the different types of pay rate systems and schemes.

Subjects covered in this guide

• Introduction
• Pay rate systems
• Setting up a new pay rate system
• Making pay comparisons
• Equal pay for work of equal value
• Reviewing pay rates and systems
• Commission, bonuses tips and gratuities