HUMAN RESOURCE MANAGEMENT PRACTICE - Fichier PDF

Managing reward systems ❚ 745REWARD PROCEDURESReward management procedures are required to achieve and monitor the implementationof reward management policies. They deal with methods of fixing pay onappointment or promotion and dealing with anomalies. They will also refer tomethods of appealing against grading or pay decisions, usually through theorganization’s normal appeals procedure.Procedures for grading jobsThe procedures for grading new jobs or re-grading existing ones should lay downthat grading or re-grading can only take place after a proper job evaluation study. It isnecessary to take action to control grade drift (unjustified upgradings) by insistingthat this procedure is followed. Pressures to upgrade because of market forces ordifficulties in recruitment or retention should be resisted. These problems shouldbe addressed by such methods as market premiums or creating special marketgroups of jobs.Fixing rates of pay on appointmentLine managers should have a major say in pay offers and some freedom tonegotiate when necessary, but they should be required to take account of relevant paypolicy guidelines which should set out the circumstances in which pay offers abovethe minimum of the range can be made. It is customary to allow a reasonabledegree of freedom to make offers up to a certain point, eg the 90 per cent level in an80 to 120 per cent pay range. Pay policies frequently allow offers to be made upto the midpoint or reference point depending on the extent to which the recruithas the necessary experience, skills and competences. Offers above the midpointshould be exceptional because they would leave relatively little room forexpansion. Such offers will sometimes be made because of market pressures, butthey need to be very carefully considered because of the inevitably of gradedrift unless the individual is promoted fairly soon. If the current rates are too low toattract good candidates, it may be necessary to reconsider the scales or to agree onspecial market rate premiums. To keep the latter under control, it is advisable torequire that they should only be awarded if they are authorized by the personneldepartment or a more senior manager. Many organizations require that all offersshould be vetted and approved by a member of the personnel function and/or ahigher authority.