Creating transparent and fair pay structures
Compensation Systems
The works council can play an active role in shaping the company’s pay structures. We support you in understanding existing arrangements, critically assessing the company’s proposals, and developing fair and transparent rules.
Making roles and positions comparable
From role profiles to salary bands
Pay structures often evolve over many years. New roles are introduced, responsibilities change and pay develops at different rates. Over time, it can become increasingly difficult to understand how roles have been evaluated, why pay differences exist and what rules govern employees’ pay progression.
A transparent pay system starts with the actual responsibilities and requirements of a role. Up-to-date job descriptions provide the foundation, setting out the key responsibilities, level of accountability and professional requirements associated with each role.
Roles are then evaluated against defined criteria and assigned to comparable job levels, job families or grades. This process, commonly referred to as job evaluation or grading, provides the basis for structures such as salary bands.
Reviewing and shaping pay models
Evaluating existing systems and developing new ones
Companies introduce new pay systems or revise existing models. We work with you to assess whether job descriptions accurately reflect employees’ actual responsibilities and whether the evaluation criteria are clear and appropriate. We also examine how the company classifies comparable roles and determines future pay progression.
We make the company’s proposed model transparent and understandable for the works council and identify areas where clear rules may be needed. On this basis, we help you formulate targeted questions and develop your own position.
Depending on your requirements, we work with you to develop evaluation criteria, job levels, salary bands and rules for pay progression – or, where needed, a complete pay system.
Establishing clear rules for day-to-day practice
Creating transparent and reliable pay structures
A pay system does not end with assigning employees to a particular pay grade. Clear rules are needed for starting salaries, pay progression and moving between job levels. Variable pay, allowances and additional benefits also need to fit coherently within the overall structure.
A good system is easy to understand and practical to apply in day-to-day operations. Everyone should be able to see how their pay is structured and how it can develop over time. At the same time, the system ensures that comparable roles are rewarded according to consistent criteria. This enables the works council to review and help shape pay structures on an ongoing basis.
Do you have questions about pay systems? Get in touch with us.
