The purpose of having a process relating to setting remuneration, rewards and incentives is to reward productivity increases or the undertaking of greater responsibilities and recognise differences in job responsibilities and differences in levels of individual performance.
For the purpose of evaluating levels of remuneration, businesses need to look at the overall total package cost to the business. In determining the level of remuneration, consideration should be given to the following factors:
- Performance of the company;
- Market conditions – eg how the national economy is performing;
- Role specific conditions – eg shortage of particular skills;
- Individual performance
As each of the cost factors vary from business to business, HR Advice Online can assist you to create a remuneration plan tailored specifically for you when undertaking salary reviews.
Call us on 1300 720 004 to discuss your specific business needs.
Information in HR Advice Online guides and blog posts is meant purely for educational discussion of human resources issues. It contains only general information about human resources matters and due to factors such as government legislation changes, may not be up-to-date at the time of reading. It is not legal advice and should not be treated as such.