Time change – and so must your approach to rewarding your employees in the most cost-effect way.

The most fundamental reasons to undertake a Pay & Reward Audit are:

• To understand and counter adverse/unexpected changes in employee behaviour or in the external labour market, e.g. poor performance, high attrition, unexplained turnover and poor global alignment and mobility;
• To rebalance the pay formula and place more or less of your pay spend into particular pay categories, i.e reallocation between base, short term incentive and long term incentives to change the behaviour of particular sections of the workforce;
• To re-appraise what people actually do: you would be surprised by how far many companies have moved away from their original mission, and the extent to which informal job duties and pay systems have taken over, leading to no really true yardstick by which to measure how jobs and their incumbents should be paid relative to each other;
• To revitalise incentives – perhaps the largest area of activity – to ensure that the tasks to be incentivised are fully aligned with company goals;