MANAGEMENT PAY
Recognition and reward at Littlewoods Retail
Littlewoods Retail has overhauled its compensation and benefits package for senior managers, replacing a hierarchical grading structure and annual cost-of-living rises with a new reward system based on individual "contribution", market-based pay and flexible benefits, according to a case study published by Industrial Relations Services, the independent pay analysts.
For the latest edition of its fortnightly Pay and Benefits Bulletin, IRS visited Littlewoods Retail and talked to Rod Rees, director of remuneration and benefits, about the new Recognition, reward and benefits package. Introduced on 1 May 1999, the package covers 1,000 senior managers in Littlewoods retail operations.
Over its five pages, the IRS case study examines the:
removal of a hierarchical grading structure, replete with pay zones, minimum and maximum salaries, and status-driven benefits
introduction of indicative salaries based on market rate surveys
new revised reward system which pay senior managers according to their experience, skill, competencies and contribution to the company’s success
rolling-out of Lifestyles — a flexible benefits package — which allows employees to trade or select a range of benefits to suit their individual circumstances.
Title: "Recognition and reward at Littlewoods Retail", Pay and Benefits Bulletin 482, October 1999.
Availability: Industrial Relations Services, tel: 020 7354 5858.