Accelerate May 2015 - Page 71

Reward Typically, the best time to take stock and evaluate whether your new pay structure is, in fact, effective is after the first three to six months. There are various ways in which to evaluate the effectiveness of the new structure; employee satisfaction surveys are usually quite helpful in determining if something is really working. Once the results of the evaluation process have been received, it is time for you to analyse them comprehensively. This process would require of the owners of the process to be honest with themselves. If it is working, it is useful to know why. If it is not working, it is critical to know why not. If it is effective, it could be left for a while before making unnecessary changes. If it is not so effective, you could then identify areas for review and improvement. You should then consider whether the structure only needs minor amendments or a major overhaul, or in extreme cases, something completely new. These are the hard core questions to ask and answer honestly. Once your pay structure has been finally accepted, remember that it can never be cast in stone. Long gone are the days that reward models have a long shelf life. The competitiveness in the market requires reward experts to consistently review their systems. On a final note, just ask the question if it is improving attraction, retention, performance and even turnover; if it is, then well done. If not, go back to the drawing board. Our work is ultimately never finished! Deon van der Vyver has extensive experience in HR, with his primary focus areas being HR strategy and policy development, job evaluation, role profiling, organisational design, skills audits as well as compensation and benefits. He has developed and implemented many HR strategies, policies, job profiles, job evaluations, organisational structures, compensation, benefit strategies and executive compensation at both the corporate and regional levels. This includes the development of a new organisational and pay structure for health professionals worth more than R5b (including job evaluation). Deon also has significant exposure to international benchmarking and payroll, including having conducted research to benchmark the remuneration levels of Public Office bearers. Resources 1. WorldatWork, GR4, Module 4, Designing Base Pay Structures; 2. Designing a Pay Structure, Dr Lisa A Burke (Society for Human Resource Management). May 2015 71