Developing the wage policy
Many companies are not yet able to fall back on a structured wage policy. That is because wages have evolved over time, have no or little underpinning and up to now have mostly been determined on an ad hoc basis. However, the larger the organisation becomes, the greater the need for a systematic wage structure. A coherent and competitive wage policy is also indispensable in attracting and retaining interesting profiles. We would be pleased to assist you with this exercise and will help you to define a clear, manageable and competitive wage policy.
Specifically what does developing a wage policy entail?
When setting up a wage structure, the starting point is always the company’s organogram and the current job descriptions. After all, these organisational documents - which provide information about the job content, the required skills, the competences and the place within the organisation – form the foundations of a good wage policy and enable correct internal and external comparisons to be made.
External benchmark
Taking into account your specific company information (i.e. its size, the sector and the region), the job descriptions and a number of personal parameters (including the level of experience), for each job we can provide an indication of a competitive wage. Not only would we provide information about the basic monthly and annual salary and the variable wage (that includes all bonuses, commissions, premiums and warrants), but for the various positions we will inform you about the customary extralegal benefits (such as meal vouchers, costs borne by the employer, company car and group insurance). These external market data are shown in a comprehensible way and compared to current, individual wages.
Internal tuning
Based on the job descriptions and the related consultation with you, as manger, the wage ratios between the different internal employees are analysed critically. As well as the relative importance and the value of the roles within the company, the employees’ individual performances are taken into account in this analysis.
Development of a wage structure
Based on the information received from the internal and external tuning, as well as taking into account the required wage strategy (lower, equal or higher wage level than the competition), for each job or each job category, we prepare wage brackets and we will also structure the extralegal benefits. Ensuring that the wage is also attractive for tax purposes and optimising the remuneration package are also included in the options we offer.
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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