Looking for advice, please. We have recently developed our TR strategy and decided on the point we would like to benchmark against in the market. As a result, there are a number of employees reflecting both under our target benchmark range and further above the range we are comfortable with. We could just apply to the board for a specific lump sum to right size those under benchmark either as a whole or by risk, and restrict future increases for those above, but does anyone have other methods that you have found effective in the rightsizing process ?
Hi Karen: What I would recommend is creating a pay range, typically +/- 20% of the target benchmark initially. Then look at who is below; this is your first focus - the cost to bring them to the minimum pay for their role. Then look at the ones over 20% of the target figure; what is the risk if they are red circled? Lastly, work with the HRBP team and possibly Talent team to look at where everyone should "sit"; in their range, relative to their capability and contribution. It is not an exact science, and overall cost comes into play; aim to get it right in 2 to 3 years, but tackle the obvious anomalies as you've already done for those you've identified as 'under' or 'over' paid. Make sure you get stakeholder engagement from leaders and managers, and have a great comms material and plan ready so everyone can see, broadly, how you arrived at the final result...especially if it impacts them or their team! Hope this helps.