CIPD issues guidance on local pay

LOCAL PAY

CIPD issues guidance on local pay

The Chartered Institute of Personnel and Development has published an updated factsheet on local pay.

The factsheet gives introductory guidance. It:

  • sets out the background to local pay

  • outlines the main approaches to local pay variation used in organisations in the public and private sectors

  • considers the evidence on the appropriate levels of differentiation

  • includes the CIPD viewpoint.

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CIPD comment

“Employers have a range of options for introducing geographical pay variation to deal with different labour market conditions. Economic analysis suggests that labour markets should determine access to extra payment and the level of the payments, rather than pure cost-of-living considerations. It also shows that labour market problems, as witnessed by the degree of differentiation that exists, are largely focussed in London and the South East of England. It would be logical for multi-regional employers to focus most attention on these areas while also introducing processes that enable regional ‘hotspots’ outside London and the South East to be identified and addressed.”

Want to know more?

Title: Factsheet: Local pay, Chartered Institute of Personnel and Development, revised June 2009.

Availability: To download the factsheet, free of charge, 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.