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Effective Reward Strategy Essay

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The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.
1. The main External Factors are:
a. Political: the job market in the UK is split between Public sector ie Government and Private sector. Government policies have control of reward strategy within the Public …show more content…

i) National Minimum Wage, introduced by the Labour Party as part of the Maastrict Treaty 1992. The treaty had requirements for there to be a minimum standard of living for all citizens. The National Minimum Wage met this requirement. Is was highly criticised before being introduced , but did not have the negative impact on business as was suspected. This was partly due to the level being set fairly low upon introduction. There are set rates within 3 bandings according to age. ii) Equal Pay The Equality Act 2010, which encompasses the Equal Act 1970, made it unlawful to pay men and women differently if they were employed in :
• Like Work: the legislation defines that the work does not need to be identical but ‘ work of the same or broadly similar nature’. as demonstrated in the case of Capper Pass v Lawton (1977) where a sole female cook (Lawton), working 40 hours per week cooked for ten to twenty people per day, was deemed to be doing like work as two assistant male chefs, working 40 hours per week, but with 5 ½ hours over time paid and who were preparing three hundred and fifty meals per day. They were both paid more than Lawton. It was noted that the skills and experience were similar in both jobs – hence it was ‘like work’
• Work rated as Equivalent – where two different jobs have the same grading within a grading structure or when evaluated and when each component is broken down the jobs

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