New guide to pay systems

REWARD MANAGEMENT

ACAS, the employment relations experts, has published a new guide to rewarding employees for their individual contribution, skills and performance.

What you will find in this Acas booklet

This booklet is intended to provide an introduction to the variety of pay systems currently in operation in organisations. It is divided into seven main parts:

What are pay systems?

brief introduction to the main categories of pay system

Why have different types of pay systems?

basic rate systems
basic rate schemes
incentive schemes

Selecting and installing a pay system

accept the cost
be systematic
involve your workforce
take stock of the existing system
identify the objectives
select a new scheme
shape to local needs
keep it simple
prepare the way
install the system
maintain, monitor and evaluate

Basic rate systems

paying employees in relation to a given period of time

Incentive schemes for individuals

individual payment by results
piecework, bonus schemes and homeworkers
work-measured schemes
measured day work
merit pay
market-based pay
competency- and skills-based pay

Incentive schemes for groups

team-based pay
plant- or company-based pay
gainsharing
profit-related pay schemes

Trends in pay structures

broadbanding
harmonisation and single-status agreements

Want to know more?

Title: Pay Systems, Advisory, Conciliation and Arbitration Service, July 2003.

Availability: You can access the booklet, free of charge, at the Acas web site www.acas.org.uk/publications/b02.html

The Advisory, Conciliation and Arbitration Service (Acas) is committed to building better relationships in the workplace and offers a wide range of practical help for organisations through a national programme of events. The Acas national helpline, tel: 08457 474747 can answer most of your questions about employment relations matters including your legal rights and duties. To find out more about Acas visit www.acas.org.uk

Posted 1 September 2003