What to take into consideration when reviewing employee's pay? (Why it should not be aligned with end of year appraisals)
In this podcast episode, the discussion revolves around the intricate aspects of employee compensation within organisations. The conversation begins by addressing the key factors and performance metrics that should be taken into account when determining employee compensation, both within and outside the conventional appraisal cycle. The importance of decoupling employee pay from end-of-year appraisals is explored, shedding light on the need for a more dynamic and responsive approach.
Adam delves into the steps involved in conducting a comprehensive pay review, emphasising the distinctions from traditional annual reviews. The challenge of setting fair and competitive salaries is tackled, considering market rates and individual contributions. The impact of a dynamic compensation approach on employee motivation, retention, and overall job satisfaction is also discussed.
Additionally, the role of transparency in organisational culture is examined, with a focus on open communication about pay and related decisions. This episode concludes with practical advice for leaders responsible for employee pay, particularly in terms of navigating pay rises and fostering a positive compensation environment within the organisation.
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