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Competency Frameworks – Pay and Reward

Competencies do not only apply to recruitment.  They are also critical in reward and retention strategies.

We have worked with several organisations to apply competencies to address a specific issue.

Examples

We list below some examples of where we have worked with organisations to influence their pay and reward strategies to meet a specific need:

  • Losing skills after 2 years – One organisation found that they had a high level of staff churn at 2 years. On examination the existing pay system did not provide financial progression beyond 2 years other than through obtaining a specific qualification. Achievement of the qualification was not always a possibility for certain individuals who had commitments outside of work and therefore there was a need to review the reward strategy to improve retention of key skills. Each role was reviewed and clarified and then supported by a competency profile upon which a ‘competent’ performance could be assessed.  Two further levels were created for ‘developing’ staff and those ‘exceeding’ competent performance. Objectives for staff were then set to reward achievement of competency goals year on year and retention and perceptions of reward improved.
  • Change and rewarding positive behaviour   Two other organisations we worked with wanted to change behaviours of their staff through using a reward strategy which emphasised the positive behaviours the organisation valued. One organisation wanted to instil a more outward facing customer orientated approach whilst another wanted to instil new values following a TUPE transfer. In both cases competencies linked to pay and/or reward strategies helped ‘turn around’ the behaviours of those within the organisation and bring about the changes they wished to make.
  • Changing emphasis of reward away from length of service   For another organisation, reward had typically been on an incremental basis with increments attaching for each year of service. This method no longer suited the organisations needs and they were losing staff they wished to retain as they were leaving the organisation for higher paid roles elsewhere. Through rewarding demonstration of certain key competencies individuals were able to directly influence their reward packages and therefore the emphasis shifted from rewarding long service to rewarding those values which really counted and made a difference.

Our Approach

We would arrange a preliminary meeting with you to discuss your requirements paying particular attention to where the organisation is now compared to where it needs to be.

We would then devise an approach with you to suit your specific issue but typically this would involve the following:

  • Review of existing reward mechanisms.
  • Examination of the current issues.
  • Defining the shift required.
  • Obtaining full clarity and definition of where the organisation needed to be.
  • Proposing new pay mechanisms suited to your organisation.
  • Agreeing a final reward scheme.
  • Transition support – either ‘hands on’ or advisory.
  • Preparation of documentation to support the transition.