The new reward framework at BT

BT, one of Europe's leading providers of telecommunications services, is currently in the midst of a radical transformation of its business in a fiercely competitive and highly regulated market. Without doubt, this is one of the most significant changes in the company's long history. What's more, BT has embarked on a root and branch shake-up of its reward strategy, processes and policies for its managerial and professional employees.

Reward processes have been refocused and "aligned more closely with the specific needs of the business" and rates of reward currently on offer in the markets in which it operates. The new reward framework builds on that foundation and aims to ensure that BT's total reward package remains competitive. Reward is increasingly managed in relation to individual performance and against the external market.

In the 2005 financial year, BT introduced a new pay structure, comprising 250-plus market-based roles in 18 different job families, covering some 40,000 employees worldwide. Pay, bonuses and benefits are now "comparable with the market rate".

For more details see our review, published in the 'Features' section of, 22 November 2005.

Download a 10-page summary of the BT case study in PDF format by clicking here