Developing and optimizing remuneration schemes

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Companies are currently focusing on optimizing their costs. As remuneration is part of the employee value proposition, it is important to focus on retaining key employees when optimizing wage costs, as well as costs of employee benefits. A properly tuned remuneration system will allow a company to support the effectiveness of the recruitment process, to remunerate transparently, to stimulate career growth, and, at the same time, to focus available funds on those job positions and employee groups that are vital for the company and its activities.

The project’s main objective is to ensure the internal fairness and external competitiveness of remuneration in the company. We help clients develop a remuneration strategy and solve the issue of setting remuneration properly through systems which are transparent, administratively easy to maintain, and linked to other HR management areas (such as recruitment and selection, learning and devel-opment, or employee performance management).

We develop the base pay system based on the remuneration strategy, job complexity of individual positions, career paths, and outputs of the annual remuneration survey PayWell. We base the system for managing variable pay component on linking individual performance with managing the company’s performance. Performance may be managed using the Balanced Scorecard (BSC), Management by Objectives (MBO), Management by Competencies (MBC), or other methodologies. Methodologies that will define the technical and soft competencies designated for managing expertise, the development and behaviour of employees in the workplace, are also part of the project.

By implementing the remuneration strategy and a transparent remuneration system, the company obtains a tool for supporting the achievement of the firm’s goals, increasing company’s attractiveness on the labour market, and employee stabilization.