Factors Driving Changes To Remuneration Policy And Outcomes

Abstract

The aim of this study was to develop an in-depth understanding of the relative importance of the factors driving change to remuneration policy decision making and the impact on organisations. Data from 148 organisations was analysed and subjected to rigorous statistical analysis. The results show that the most potent drivers of remuneration policy are retention of key staff, financial results and organisation strategy. The greatest changes to remuneration policy were in the areas of variable pay, merit/performance related pay, market position, total package and job evaluation/ broadbanding policy. A strong correlation was found between the extent of change in Remuneration policy and impact on the organisation. This suggests that the greater the change in Remuneration policy the greater the impact on the organisation. OpsommingDie doel van hierdie studie is om die relatiewe belangrikheid van die faktore wat verandering in die vergoeding besluitnemingsbeleid dryf asook die impak wat dit op organisasie het in diepte te verstaan. Data van 148 organisasies is geanaliseer onderworpe aan streng statisiese analises. Die resultaat wys dat die mees kritieke drywers vir vergoedingsbeleid die volgende is: retensie van sleutelpersoneel, finansiële resultate en organisasie strategie. Die grootste veranderinge in vergoedsbeleid was in die volgende areas: veranderlike betaling, meriete/prestasie verwante betaling, markposisie, totale pakket en rolevaluasie/‘broadband’ beleid? Sterk korrelasie is gevind tussen die vlak van verandering in die vergoedingsbeleid en die impak op die organisasie. Dit wys onder andere uit hoe groter die verandering in vergoedingsbeleid, hoe groter die impak op die organisasie.