Implementing an online pay review system
As potential customers consider the advantages of using our pay review solution, PAYreview, they ask the same basic questions.
What reward data can we capture in PAYreview?
Many of our clients have complex reward offerings including salaries, bonuses, allowances and benefits. As a starting point, new PAYreview users like to test the water by capturing basic data required for their salary review initially and incorporating more data in subsequent years.
How does PAYreview handle performance related pay?
Our pay review software allows line managers to enter performance ratings for each employee. Companies have the option of either capturing these alongside the salary increases or, if preferred, capturing all the performance ratings first and then using them to create pay-for-performance matrices.
Can PAYreview show benchmark data?
Yes. It is generally agreed that benchmarked salary data is essential for line managers to see who is under or over paid to the external labour market. We can provide this information so you can benchmark your jobs. Some of our customers also introduce alternative providers’ market data, whilst others prefer to use their own internal data as a comparison. Line managers usually like to see the market quartiles, median and mean, and a status indicator such as the compa-ratio.
How does PAYreview cope with changes in our data?
Our customers usually send us a download from their HR/payroll system for us to load into PAYreview. This can sometimes be out-of-date. In a large company employees can move around and their situations change, even during the course of the pay review. For this reason, we have developed a change request module where managers can notify the administrators of any data inconsistencies. The result at the end of the review is a completely clean set of data that can be loaded back into the HR system and you can be confident that all the data has been thoroughly checked.
What training and support is available for users?
Help is available within the system. With a large population of line managers, there are often a few who do not read help pages. We therefore offer training videos to help guide them through the process. We find the most efficient and reliable way is to organise seminars for groups of managers, who view the videos and then ask questions. For managers who don’t remember what to do or who have problems (e.g. forgotten passwords. etc.), it is important to offer a support structure involving your HRBP’s and a couple of data administrators.
How do you tailor PAYreview to our specific needs?
We usually allow about two months to agree and develop each bespoke software solution. During this time we load sample data into it, which enables each customer to see the system as it evolves. This is called “agile development”, whereby you can see how it is taking shape and if you have some bright ideas, it is not too late to incorporate them. Similarly, if our developers have some bright ideas we can discuss them with you and include them if you like them. It is widely accepted that agile software development leads to a better product and gives you the reassurance that it will function the way you require it to. Alternatively, we can discuss and agree a detailed functional specification at the start and get it all down on paper, if that is how you prefer to work.
How is PAYreview implemented? How long does it take?
After the one to two months of bespoke development, you can load your live data into the PAYreview software.
For a typical review of 1,000 employees, we advise a week to check the data. At the start of this week you can send out communications to warn managers of the forthcoming review. You can send out email invitations to managers even if you have not thoroughly checked the data. The managers can always check the data for you and send out change requests online. We usually allow about a week for this.
Depending on the number of stages in your review chain, we expect about a week for each review stage to complete. Therefore, if an employee is reviewed and then approved by two other managers, we expect it to take about three weeks. Once all the figures are submitted and approved, you will probably want to produce summary reports for the Remuneration Committee.
When everything is signed off, you can print off letters for your review managers to distribute to their employees. This usually takes a further two weeks. You could send them out yourself, but most of our clients prefer a more personal approach.
As you can see, once development is complete, the pay review process can be kept down to four to six weeks, which we find is a significant improvement for many of our customers.
How will PAYreview develop going forward?
As more customers use our pay review software solution, we continue to expand it capabilities. We welcome feedback from users, which helps us target potential development opportunities appropriately.