Getting pay correct is crucial. ACAS recently reported that they received over 80,000 helpline calls in the last year. Many of their calls will, no doubt, have been related to holiday pay – an issue which is complex and on which we too can help.
More worryingly, a recent CIPD report emphasises that economic recovery is not being reflected in pay packets. With few pay rises being more than a couple of percent it is easy to fall behind others who may be more savvy. Not knowing what you should be paying employees is comparable to not knowing what to charge for your goods or services.
While the evidence is that most employees are “pushed” into leaving rather than “pulled” by a new employer ,this doesn’t mean that pay is anything other than an issue. Feeling one is not fairly remunerated is a substantial de-motivator and a cause for reviewing the CV. Indeed a report from across the Atlantic confirms that employees do leave indeed for more pay. If an employee is a key worker, then any margin of under pay will invariably be small in comparison with the cost of finding a replacement.
But, as we have said before in these blogs, getting pay right is not a merely a question of scanning job advertisements for headline rates. It is about understanding what people in similar jobs are earning in your area (or in some cases regionally or nationally). Convincing employees that their salary is fair in the first place should stop the CV being reviewed. But you can only do that with neutral, factual data. Which is where Employer Solutions can come in.