PAY PROGRESSION
New factsheet on pay progression
Many organisations choose to use a combination of factors in determining employees’ pay progression. The Chartered Institute of Personnel and Development has published a new factsheet examining the different types of progression now used in the UK.
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Pay progression, according to the CIPD’s definition refers to:
“The process by which an individual employee attains higher levels of pay within a range attached to a pay grade or band. In this context, pay progression may be regarded as ‘real’ growth in pay, that is, in addition or separate to ‘cost of living’ – or inflation-linked – increases and/or the attainment of formal promotion to a higher grade or band.”
In this factsheet, the CIPD:
defines and explains the rationale for having specific pay progression arrangements in place
explores the impact of pay structure design on employees’ potential for pay progression
summarises the characteristics of different types of pay progression arrangements and the extent to which they operate among employers
assesses trends and changes to methods of pay advancement in recent years
examines techniques for controlling pay progression
summarises key issues involved in the management of pay progression
includes the CIPD viewpoint.
A final word
The CIPD concludes with its own viewpoint on the subject stating that:
“Approaches to pay progression need to be capable of meeting both the business needs of the organisation (and to be sufficiently flexible to adapt as those needs change), as well as the aspirations of employees, in a fair and non-discriminatory way. Employers should review their systems of pay progression on a regular basis and consider alternative approaches if existing arrangements are no longer able to meet these needs.”
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.