New guide to pay systems

REWARD MANAGEMENT

New guide to pay systems

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