Hello!

I think this is a great question!

I've recently finished by MSc in HRM too and I struggled to set out my question. My research aim was to "Critically explore the narrative of Performance Management at a UK Uni: Is it fit for purpose for Professional Services." Which is different, however Universities operate on a grading structure which 'set's the scene'.

The grading structures were implemented in Universities to show work of equal value was being paid to staff who completed work of equal value. The 50 point 'pay scale' was introduced and many uni's decided to apply it (this happened about 20/15 years ago). And that's one of the most positively used argument for having a grading structure that I could come across, but this was in online articles not many written journals. This was part of the National Framework Agreement, and some sources can be found by looking at National Committee inquiry into Higher Education (1995).

All employees at the Uni are on a grading structure, and contractual entitlements vary for different grades. There are a few different 'grade scales', there's one that most belong too, one for professors, one for clinical. But for the one that most belong too, the higher grades have a longer notice period, better sick pay entitlements, able to join a pension scheme with voluntary contributions, extra 5 days holiday, and more pay. In terms of benefits though, I do find they are lacking slightly. There's the opportunity to sign up to travel loans, cycle 2 work, childcare vouchers (but closed to new entrants) for all grades, and there's discounts we have that are open to students. There is sometimes a question who those on higher grades get extra annual leave days, but this is because they don't get paid for over time, whereas lower grades do, or they get TOIL.

There's a lot of history with HEI's which may make be different to industry based organisations though. Performance related pay isn't something that exists on a bigger scale here either. There is a scheme that takes place once a year, and line managers put their staff forward, it goes though a few panels, and if approved staff get a little bit of cash, and its pro-rata but its really small, and most grades can apply for this. And, there's a dinner that some can go to, but again, very small and I think about 0.5% get to go to the yearly dinner. There's a bigger reward for staff if they stay for 25 years, than if they are 'excellent' or 'outstanding'.

Good luck with you project!

E

……. bring to employee engagement at X I would suggest as employee engagement is a buzz word.

Implementing pay structures that automatically award an increment annually which happen in the public sector do nothing to help employee engagement in my experience. The pay grades often have an annual inflation increase awarded so the employee may increase their pay without doing anything to earn it. Once the employee reaches the top of their grade they are keen to get the job evaluated for a higher pay grading.

Instead where progression criteria is added to each pay grade the employee has to work to earn their pay increase moving up the grades. This should encourage engagement with some, not all, as they have to strive to earn their reward. I have developed a few of these structures. This is in effect pay for performance.

Nice replies already!

I would add that the question of motivation goes beyond pay grades and covers any job grading system. In many (private) organisations wher promtion is on merit as opposed to years of service - in addition to more basic pay, a change in job grade usually includes, in addition:

• Greater responsibilities and potential for jincreased ob satisfaction by facing new challenges
• Recognition by the company that the person has added value
• Possibly better benefits like : more holiday, better medical cover and/or sick pay, a company car or a better one....
• Access to quarterly key manager meetings with th senior team  (highy valued and sought after)
• Access to a bonus scheme or a larger bonus opportunity
• Etc.

Hope this helps

Ray

Hi Chloe

I'm currently supervising students carrying out their Management Research Project at a university. The process may differ from yours and to set the context my lot have to make costed recommendations as a result of their research.

If your setup is the same I would ask what you are investigating. Is it the benefits of pay grade structures or is it what motivates/engages employees. As Ray has already pointed out, the latter is a bigger issue than simply pay structures.