Compensation & Benefits
Wages and salaries are undoubtedly a major cost factor. At the same time, a competitive pay package is a basic prerequisite for attracting and retaining talented employees. It is therefore essential to perfectly attune salaries to jobs and performance, and ensure that investments in wages are deployed in the most balanced way possible. When drafting a compensation policy, several factors need to be reconciled: budgetary constraints, the motivating power of salaries, legal requirements, fiscal implications and the relative degree of difficulty in finding the right candidate for a specific job. To be accepted the compensation policy has to fit in with the overall company culture. To meet all these requirements, Acerta has developed an integrated approach for dealing with compensation-related challenges.
- Measuring added value
- Analysis and comparison
- Deciding on and introducing an optimal pay package
- Importance of clear communication
Measuring added value
Well-written job descriptions are the basis of an efficient compensation policy. Acerta developed a targeted approach for drafting functional, clear job descriptions. We offer you a template and a manual, as well as practical training for your HR-representatives and people managers.
The added value delivered by an employee in a specific job determines his or her basic pay. To help you to measure the relative value that various jobs add, Acerta’s offers a series of research-based instruments for job valuation and classification.
Job valuation and classification are very labour-intensive processes. Acerta’s experts can help you to manage these processes and ensure that they run as efficiently as possible. To that end, Acerta has developed a protocol that has been approved by the trade unions. The protocol describes the procedures for job classification, the establishment of a counselling commission and the specifics of the appeal and maintenance procedures. The fact that the methodology has been validated and approved by the trade unions will facilitate the acceptance of the system in your organisation.
While your company continuously develops, the labour market also keeps changing. When considering job-classification practices, it is important to opt for a dynamic approach. The addition of new job descriptions, changes in current jobs, new valuations etc. all have their impact on the classification. Together with you, our experts develop a plan for the required maintenance procedures, in line with the principles of the cooperation protocol.
Analysis and comparison
To optimise the compensation policy in your company, it can be important to first establish a complete overview of the current compensation system. You can rely on Acerta’s experts for a compensation audit and analysis. This may involve a comparison with other firms in your industry. Acerta uses an extensive database, including Watson Wyatt benchmark data. For the critical functions in your organisation, we can offer a specific, individual salary comparison.
Deciding on and introducing an optimal pay package
Once you have an overview of the different jobs, job descriptions and classifications, you can start to establish a pay package. Acerta helps you to determine the most appropriate compensation mechanisms and components (fixed or variable pay, financial participation, fees, benefits, group insurances, bonus plans, etc.). You can also rely on Acerta’s experts for determining wage scales and developing other technical tools.
If the introduction of a new compensation policy coincides with the implementation of a new performance-evaluation system, Acerta can help you develop and implement the new system. We train you HR representatives and people managers in developing and using job specification charts and conducting performance reviews and appraisals. As part of this initiative, we always spend sufficient time informing your personnel in a positive and motivating way.
A new compensation policy will have an impact on your pay-processing system. If you need some extra support in this area, you can rely on the Acerta In-House HR experts. You will find more information about their services in the section In-company Support.
It is obviously also very important to consider all legal requirements. You can rely on the advice of the legal experts at Acerta Legal Consult. They can, for instance, help you to write collective bargaining agreements and draft new terms of employment or new contracts.
Importance of clear communication
To be efficient, the compensation policy must be known and accepted. We recommend informing your employees about the process from the very start. To investigate their views on compensation, Acerta can set up an employee survey about compensation. You can use a set of standard questions and add extra topics. Developing a new compensation policy will take some time. Acerta helps you to establish a communication plan. During the entire process, we also help you to inform all parties concerned about the milestones and the outcome of the initiative.