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New factsheet on pay structures

There has been a tendency towards growing complexity of pay structures in recent years. The Chartered Institute of Personnel and Development has published a new factsheet examining the different types of structure now used in the UK, providing a useful insight into this complex subject.

The factsheet:

  • defines and explains the rationale for operating formal pay structures

  • summarises the characteristics of different types of pay structures and the advantages and drawbacks of each approach

  • looks at the incidence of various structural arrangements among employers and highlights trends and changes in recent years

  • assesses the issues involved when creating and revising pay structures.

A final word

The CIPD concludes with its own viewpoint on the subject stating that:

“Pay structures should be carefully designed to support the business strategy of the organisation and to provide a clear and non-discriminatory framework for pay progression and career development for employees. They also need to be sufficiently flexible to adapt to changing business needs and kept under regular review.”

Want to know more?

Title: Pay structures: Factsheet, Chartered Institute of Personnel and Development, September 2008.

Availability: To download the factsheet, go to www.cipd.co.uk/onlineinfodocuments/factsheets.htm.

The Chartered Institute of Personnel and Development (CIPD) has more than 130,000 members and is the leading professional institute for those involved in the management and development of people. To find out more visit www.cipd.co.uk.

Date 16/09/2008

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