Pay & Benefits
ForHR can help you with all aspects of pay and benefits. Rosie has a mathematical background and is knowledgeable about these areas.
Pay and Bonus Structures
We can help you decide whether you need a pay structure and, if you do, what it should look like. We can also advise on bonus and commission schemes.
National Minimum Wage / National Living Wage
ForHR can make sure you are paying in line with the Government’s National Living Wage oand National Minimum Wage. To see what those are currently, please see Factsheet
The Real Living Wage
The Living Wage is set by an independent group for the Living Wage Foundation as the pay level on which someone should be able to live (i.e. based on the cost of living); there is a value for London and a value for the rest of the UK. To see the current values please see factsheet. Many organisations are now committing to pay the Living Wage for all employees; we can help you decide whether this would be right for your business.
Equal pay is the right for men and women to be paid the same when doing the same, or equivalent, work. It has been an aspect of UK sex discrimination law for over 40 years, and the law is now incorporated into the Equality Act 2010.
To defend a claim, an employer must be able to show that:
- the person bringing the claim and the comparator (or hypothetical comparator) are not engaged in ‘like work’, or
- a bona fide and non-discriminatory job evaluation scheme has been conducted and the work is not ‘rated as equivalent’, or
- the work is not of ‘equal value’, or
- any difference in pay is due to a material factor, or difference other than the difference of gender.
ForHR can help you review your pay rates or help defend any claims.
Gender Pay and the Gender Pay Gap
Organisations in the UK with 250 or more employees are required to calculate and publish statistics on the pay gap between their male and female employees, measured by hourly pay and bonuses, and on the proportion of male and female employees in each pay quartile. This isn’t just about reporting a set of figures; the intention is to produce a sea-change in the way organisations respond to gender pay inequality and to encourage them to take action to narrow the pay gap over a period of time. Although not obligatory, the government expects most employers to include a narrative report alongside their gender pay gap.
Organisations that fail to take action to close a gap, fail to maximise women’s contribution and may acquire a reputation as a poor employer. Businesses that are diverse, measured both by gender and other characteristics, are more productive and make better financial returns.
Understanding why a gender pay gap exists can take time, but the process of unpicking the factors involved will put businesses in a stronger position to tackle them, and help build an effective action plan to reduce the gap. ForHR can help you through all this.
If you have any employees between the ages of 22 and state pension age, who earn at least £10,000 per year, you have to auto-enrol them into a pension scheme – and employees who are paid less than that can choose to enrol. ForHR can help you choose the right pension scheme and do all the necessary communication with employees.
We are not pensions experts, but we work with people who are!
Sometimes, salary isn’t the sole consideration for people and people who feel their employer is enabling them to look after their health and wellbeing, or helping to protect them financially, can be more engaged. Employee benefits can play a big part in this caring ethos – as long as they’re the benefits that people want and value – a mix of potential benefits will work well with a diverse workforce.
Some employees may prefer benefits that protect themselves and their families against the financial impact of critical illnesses or even death, whilst some may opt for the here and now, like dental cover or a health cash plan that pays towards physiotherapy following an injury. By offering a range of benefits that support employees, no matter their age or lifestyle, you can reinforce the message that they work for a company that cares about their long-term wellbeing and happiness.
ForHR can help you put in place a menu of benefits from which employees can select – including discount schemes that are not too costly for you.
Reward & Recognition
You don’t have to pay large bonuses to reward employees or give the recognition for good work. For starters, never underestimate the power of a simple thank you!
Even small incentives and rewards. such as gift vouchers, can be a powerful motivator and this can be especially so if you have something in place to allow other employees to recognise and reward their colleagues for great work or going that extra mile. Allowing your people to vote for those they think deserve it also helps promote team spirit, respect and the feel of belonging.
If you have the budget, an annual event for employees who made outstanding contributions over the year can be a reward everyone can aspire to.
For HR can help you put reward and recognition scheme in place to suit your employees.