Set the right pay rates
Setting up a new pay rate system
Setting up a new pay rate system usually involves some costs.
Even if you are considering changing your existing system to satisfy
business needs, there will be extra cost and time involved.
The process
You may find it helpful to view
a pay rate system checklist at the Acas website. The checklist
includes advice on how to:
- plan the process for selecting or adapting a system
- involve workers, both full time and part time
- get expert advice if needed
- agree changes with workers' representatives
- look at the good and bad points of an existing system
- decide what the objectives of the system need to be, eg increased
productivity
- consider the most suitable pay differentials and links for your
business
- think about how workers might be able to earn increases to their
basic pay, eg through annual increases, bonuses,
or other payments based on performance assessment
- communicate progress regularly to all workers
- look out for potential pitfalls such as changes to pay
differentials and scope for discrimination
- make sure the system is properly maintained
- review the system's performance
- ensure women returning from maternity leave get the pay rises
occurring in their absence
Find
guidance on appraisal-related pay at the Acas website.
Subjects covered in this guide
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