A person wearing purple gloves holds a rapid diagnostic test cassette with a red line, while medical supplies rest on a green surface in the background.

Introducing Multi-Rater (360°) Performance Appraisal in UNAIDS

Written by Bianca Valencia on . Posted in Uncategorized.

What’s the context? 

As part of a broader initiative within the United Nations system to simplify and clarify job evaluation and build linkages to other HR processes, UNAIDS agreed to participate in a pilot project to link job evaluation and performance management criteria. Through such a linkage of job grading and performance measures, it was intended to assess how individual staff serving at the same grade level could be consistently evaluated. Taking such an approach, it was also decided to test the possible use of a multi-rater (360°) framework. 

What was the challenge? 

The approach to performance appraisal within United Nations agencies is determined by each agency; however, all agencies generally use a method known as MBO—Management By Objectives—based on cascading objectives from the organization to the individual. The structure of the objectives is not linked to the grade of the job, nor is there any process to align objectives across grade levels. This results in a discrete performance assessment for each individual, which can only be completed by the immediate supervisor, limiting the perspectives in performance assessment.

What was the solution? 

For the pilot, UNAIDS adopted a new performance management solution that changed the basis of assessment from MBO to using the standards of job evaluation, which provide consistent criteria by grade level. The UN classification standards are based on a simplified and transparent table of values against four factors of classification. A set of corresponding values to measure performance was established to provide clear and consistent measures. The new measures also enabled the testing of the 360-degree feedback, since the standard was easy to understand and relied solely on the evaluators’ experience working with the individual being assessed. 

The nomination of peer evaluators was left to each staff member following criteria defining a good cross-section of evaluators, while supervisors reviewed and approved the list on a strictly confidential basis. 

Another change under the pilot program was the introduction of a four-point rating scale, replacing the existing five-point scale. The new rating scale was introduced to align more closely with the focus of the assessment, which emphasizes the confirmation of achieving the expectations of the incumbent’s grade level. Using grade-level-specific measures, evaluators were asked to answer three questions:

  • Did the staff member display competence in the subject area of work? 
  • Did the staff member listen and take into account perspectives from the team and the client? 
  • Did the staff member deliver the needed services/outcome, meeting expectations in terms of timeliness and quality? 

An online platform was created for capturing performance data with a review timeframe of five weeks established for the conduct of the exercise. 

What was the outcome? 

The exercise covered some 400 staff serving in 80 country offices, including staff at UNAIDS headquarters in Geneva. Within five weeks, more than 2,000 evaluations were completed, covering eighty percent of the staff. Examination of the ratings showed a broad correlation between supervisor and peer assessment, validating the multi-rater approach. Participants also indicated the pilot system was generally easily understood and accessible across the user community. 

As a comparison, the prior system used by UNAIDS achieved just a six percent completion rate over twelve months. 

What’s the takeaway? 

Linking performance to the same factors used to evaluate jobs and anchoring them to what makes their job level distinct simplifies performance management. A simple performance standard facilitates 360° feedback. 

You can learn more about Community™ Performance here.

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Bringing Equal Pay for Work of Equal Value to Workforce Management in a Regional Network of Civil Society Organizations in Africa

Written by Bianca Valencia on . Posted in Uncategorized.

What’s the context?

A regional network of civil society organizations in Africa is committed to advocating for fair, equitable, and transparent tax systems across the continent. Through grassroots organizing, capacity building, policy advocacy, and research, the organization empowers communities and institutions to challenge tax injustices and promote sustainable and inclusive development. Coordinating these efforts is its Secretariat, strategically located in Nairobi, Kenya. Given its mandate, attracting, retaining, and developing a multidisciplinary and multinational workforce is essential for the organization to effectively realize its vision of an Africa where tax justice prevails. To achieve this, it partnered with Birches Group to design a grading structure that clearly articulated the differentiation and progression of work in the organization, along with a pay scale guided by a compensation philosophy defining its target market and position.

What was the challenge?

The newly established grading and pay structure provided the organization with a solid foundation for managing its diverse workforce based on the principles of equivalent worth and significant difference. To fully utilize this structure, the organization recognized the need for a comprehensive framework to manage individual pay progression within salary ranges, inform promotion decisions, and recognize employees’ varying levels of experience and knowledge.

The challenge was two-fold: bridging the structural framework with the people within it, and establishing sustainable pay equity practices to maintain fairness and effectiveness over time.

What was the solution?

Guided by the principle of equal pay for work of equal value, the organization, in collaboration with Birches Group, implemented a clear and transparent framework to address both challenges. This framework, Community™ Skills, expands upon the principle by explicitly defining the knowledge gained through experience as the primary determinant of value. In this approach, equity involves consistently and transparently measuring and remunerating the value of experience—recognizing that individuals have varying levels of experience and should be compensated proportionately.

Through Community™ Skills, the organization established a framework with clear criteria for pay management by articulating the progression of knowledge across five distinct stages—Basic, Proficient, Skilled, Advanced, and Expert. Each stage directly aligns with specific pay points: Minimum, 1st Quartile, Midpoint, 3rd Quartile, and Maximum, respectively. By adopting this structured approach, the organization has achieved greater clarity, consistency, and precision in managing workforce compensation and career progression.

What was the outcome?

A persistent gap in HR has traditionally been the disconnect between structure and capacity—the divide between what is considered “hard” vs “soft” HR. By building upon a solid job-based foundation and integrating a skills-based approach, the organization effectively bridged this gap. This resulted in a systematic and efficient approach to managing resources for salary increases and provided actionable insights into workforce capabilities. It also positioned the organization to make informed promotion decisions and to strategically reinforce skills growth through targeted learning and development.

What’s the takeaway?

Now in its fifth year of implementing the Community™ Skills framework, this regional network of civil society organizations in Africa serves as a prime example of how there is an alternative to the conventional, often imprecise practices of utilizing time-based steps or performance as proxies for experience. Instead, it explicitly measures experience for what it is—knowledge, expertise, and skill—enhancing transparency, fairness, and effectiveness in workforce management.

You can learn more about Community™ Skills here.

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Optimizing Market Position in the Caribbean Development Bank

Written by Bianca Valencia on . Posted in Uncategorized.

What’s the context?

The Caribbean Development Bank (CDB) is a focused multilateral development bank (MDB) and international organization committed to fostering a strong community for its staff. To remain competitive, CDB has progressively refined its compensation strategy and closely monitored developments among comparator institutions.

What was the challenge?

Competition within the multilateral banking and international organization community can be quite demanding. While being a smaller institution, CDB faces direct competition from organizations such as the World Bank and the United Nations, which have active programs in the same countries where CDB functions. In building its market model for setting salaries for its internationally recruited staff, CDB has found the greatest challenge in market competition has been for its more senior-level staff. CDB recognized that staying competitive in this area is essential to effectively serve the Caribbean region.

What was the solution?

In building the sample of comparator employers against which CDB would examine its levels of compensation, it recognized that the pay progression found in the development banks is indeed more aggressive for senior management roles than in other international organizations. As a result, CDB decided to give greater “weight” to the market data from the development banks, whereby 80% of the market reference would be drawn from these comparators for senior management roles.

What was the outcome?

By placing greater weight on development bank data for senior-level roles, CDB has been able to more closely match the progression of compensation found in these key comparators. Since this adjustment in market assessment was limited to senior roles, CDB has been able to sustain its critical market position in a very cost-effective manner by focusing on these critical roles where there are limited numbers of staff.

What’s the takeaway?

Refining comparator weighting in building the market sample is a very effective approach to targeting and optimizing market position. It enables an organization to focus on critical roles in a broader context of market positioning.

You can learn more about Community™ Market here. To see other client experiences related to optimizing market position, click here. 

Birches Group logo above a shield displaying "AICPA SOC 2 Type 2 Certified" and the AICPA SOC badge.

Birches Group is Now SOC 2 Type 2 Compliant

Written by Kai Donesa on . Posted in Uncategorized.

We are proud to announce that on May 20, 2025, Birches Group successfully achieved SOC 2 Type 2 compliance, marking a significant milestone in our ongoing commitment to data security, privacy, and operational excellence. This certification, awarded by an independent third-party auditor, builds on our previous SOC 2 Type 1 achievement and confirms that our security controls are not only well-designed but also operate effectively over time.

What is SOC 2 Type 2 Compliance?

SOC 2 (Service Organization Control 2) is an auditing standard developed by the American Institute of Certified Public Accountants (AICPA). While SOC 2 Type 1 evaluates the design of controls at a specific point in time, SOC 2 Type 2 goes further—assessing the operational effectiveness of those controls over an extended period. This certification validates that Birches Group consistently maintains the highest standards of security, confidentiality, and availability for our clients’ data.

Why SOC 2 Type 2 Matters

In today’s digital landscape, data security is not a one-time effort—it’s a continuous responsibility. As a trusted provider of HR management solutions, Birches Group understands the importance of safeguarding sensitive information. SOC 2 Type 2 compliance gives our clients added assurance that our systems are secure, reliable, and resilient over time. We want to thank our clients for their continued trust and support in Birches Group.

Key Highlights of the Certification:

  • Security: We continue to implement advanced safeguards to protect against unauthorized access and ensure data integrity.
  • Confidentiality: Our strict protocols ensure that sensitive client information remains protected and accessible only to authorized personnel.
  • Availability: Our systems are designed for reliability and uptime, ensuring consistent and uninterrupted service delivery.

“SOC 2 Type 2 certification is more than a badge—it’s a reflection of our long-term commitment to protecting our clients’ data and delivering dependable, secure HR solutions. It shows that our controls are not only well designed, but consistently effective over time.”

—Jeffrey Slater, Co-founder & Partner, Birches Group LLC

Next Steps and our Continuing Journey

SOC 2 Type 2 certification is the result of months of rigorous evaluation, continuous monitoring, and a company-wide dedication to best practices. But our journey doesn’t stop here. Birches Group remains committed to evolving our security posture, staying ahead of emerging threats, and delivering trusted, secure HR solutions to clients around the world.

For more information on SOC 2 Type 2 compliance or to request a copy of our report, please contact us.

A woman in a blue blazer speaks at a podium labeled AIIB, holding a microphone, with a laptop and whiteboard visible in the background.

20 Questions on the Challenges of Workforce Management Today

Written by Bianca Valencia on . Posted in Uncategorized.

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In our Q&A spotlight, we explore the insights of a thought leader in workforce management, delving into their experiences in building and sustaining effective workforce strategies.

Katrina Sam is the Head of Performance and Reward at the Asian Infrastructure Investment Bank (AIIB), with over ten years of experience in multilateral development, compensation, talent management, and data science. She designs and implements policies and programs aligned with the Bank’s vision and goals. Prior to AIIB, she served as Director of Human Resources and Administration at the Caribbean Development Bank. With a 20-year career in human resources, she has provided services across the Caribbean and spent nine years advising on internal HR practices at one of the Big Four accounting firms.

Q: I want to start with a simple question about the principle of equal pay for work of equal value. How is that, or is that practiced in your organization?

Yes, I think that is a key principle of compensation benefits administration here at AIIB. And it has been a principle for all of the organizations with which I have been associated for the last 20 years.

Q: Well, does that also form part of the management dialog in your organization?

In my current organization, the Bank has repeatedly articulated its commitment to equity, and obviously, as a grounding principle in our compensation and benefits program. It is something that we discuss and that we keep in mind. It is the foundation upon which all our HR practices rest.

Q: Is it well understood by the staff and management that those are the base principles that govern HR in your organization?

Certainly, I’ve been with the institution for three years now. And, in my work and in the projects and the initiatives that I have led over the last three years, we have sensitized staff and managers to this as a core principle and trying to help them to understand what it what it means and how it impacts all of the work that we do in HR and had it permeate the organization in general.

Q: How do you use job evaluation to kind of backstop or support the concept of equal pay for equal work?

For the past 13 months, we’ve been engaged in a job evaluation exercise, grounded in the belief that jobs are the foundation for everything else. By accurately valuing roles and creating a synchronized, equitable job-worth hierarchy, we ensure that all subsequent decisions reflect the principle of equal pay for equal work. We’re also pursuing Edge recertification, which includes annual reviews of gender equity and pay to uphold these values.

Q: How is your organization doing with regard to that?

Very well. We are far below the accepted standard of a 3% gap. With every assessment, our performance improves. Therefore, we are satisfied with our efforts to eliminate anomalies in pay gap analysis and gender-based pay differentiation.

Q: Do you find that your grading structure serves you well in terms of helping support career pathing and clarity around roles and so on?

The Bank is at a pivotal inflection point as it approaches its 10th anniversary early next year. Since its inception, the current structure has largely remained the same, with only a few additional grades introduced since 2016 to support career growth. While this structure has served us well, looking ahead to 2030 and our projected growth, it’s time to revalidate and adjust it to ensure it remains fit for purpose.

Q: The Bank is growing. You’ve doubled in size in the last couple of years, and you want to double again. So, your workforce becomes bigger and more multidisciplinary. Is the current structure still fit to support that purpose?

Well, I’ll let you know at the end of our exercise. But for now, we believe the current structure can accommodate both existing and projected roles. The key focus is ensuring clarity and consistency in how we evaluate and position those roles within the structure. So, while the framework itself is sound, we’re reassessing how we apply and sustain it moving forward.

A person in a pinstripe suit stands with arms crossed, smiling, in front of a row of international flags inside a modern glass building.

Q: I understand the Bank is planning to go forward with more hub office locations like the one you have in Abu Dhabi. As you move away from the current models, which focus on international recruitment and international staffing, do you anticipate creating a complementary category of nationally recruited staff?

No, we do not. I can say that confidently.

Q: Last year, we had the pleasure of supporting your market assessment, helping define where the Bank aims to position itself within the international compensation landscape. As this remains an evolving process, how well do you feel the current methodology is serving your goals, particularly in attracting and retaining the talent you need?

The methodology continues to serve us well in maintaining our desired market position. As a global employer, we strive to remain competitive. Unlike some other MDBs, we’re not limited to recruiting from member countries—we draw talent from around the world. Today, our workforce represents over 70 economies, and this inclusive approach has supported our competitiveness and aligned well with our overall philosophy.

Q: Ultimately, the real test of any pay system is whether it enables you to reach the talent markets you’re targeting. It’s always a delicate story, especially given the volatility of the current economic climate. Do you feel the methodology you’re using is robust enough to navigate these challenges and maintain your reach?

We’re confident that our market posture and total rewards philosophy have been robust in getting us to this point. That said, we’re always evolving—continuously monitoring and assessing the market to make timely adjustments. Following our most recent exercise, we believe the updates we’ve made will help us stay competitive in attracting the global talent we’re aiming for.

Q: There’s an ongoing debate within the MDB community around compensation for front-office versus back-office roles. Some organizations support pay differentials within the same grade, while others prioritize a strict equal pay approach to maintain team cohesion. How is AIIB navigating this issue—does the Bank lean toward differentiated compensation or a unified, equal pay for equal work model?

At AIIB, we’ve remained firmly committed to the principle of equal pay for equal work, as workplace harmony is a key priority for us. Our pay ranges are designed to reflect and accommodate role differences, such as front-office versus back-office, without introducing hard distinctions. This approach allows us to fairly manage professional differences within a unified and equitable framework, unlike some organizations that have opted for more segmented compensation models.

Q: Each salary grade at AIIB has a defined range of pay. How does this range allow you to recognize differences in experience and knowledge within a particular grade? Do you feel it adequately acknowledges these factors as it should?

Over the past 12 years, I’ve been fortunate to work with organizations where pay ranges were broad enough to reflect differences in skills and job value, and AIIB is no different. Our ranges are sufficiently wide to accommodate staff along the continuum, allowing us to recognize and reward differentiated skills and the value each individual brings to the table.

Q: Are you seeking to be a career organization where the current structures can support people staying and measuring their development, and the candidates can anticipate building a career here?

Yes, the Bank is in its 10th year, and my colleagues in Learning and Organization Effectiveness are working diligently on building career ladders and defining opportunities. Over the past three years, we’ve promoted more than 40% of our staff, which is notably higher than most MDBs. Our goal is to ensure that staff understand the career opportunities available and know they can have a long, fulfilling career at AIIB.

Q: When providing career opportunities through learning and development programs, do staff perceive the Bank’s approach as equitable in how these opportunities are offered?

From my perspective, particularly with the annual promotion program I oversee, we’ve worked hard over the past four cycles to communicate the criteria for advancement. We’ve set clear thresholds, emphasizing both performance and readiness for the next level. While any organization goes through a period of growth and evolution, staff have become more comfortable with the process, though some still seek further clarity. We strive to consistently communicate the criteria and hold managers accountable for adhering to them when making promotion nominations.

Q: When it comes to recognition and reward, some organizations distinguish between skills growth (recognition) and performance (reward). Does AIIB differentiate between these two, or are they combined into a single assessment?

At AIIB, recognition and reward are closely linked, though we have distinct programs for each. For example, our Applause platform facilitates both peer-to-peer and manager-to-staff recognition for going above and beyond daily expectations. We also have financial reward programs, including high-performer awards and promotions based on performance. While recognition and reward overlap, we maintain separate initiatives, but both are integral to our approach.

Q: When recruiting new staff, do you have effective mechanisms in place to assess candidates’ experience and differentiate them in terms of recruitment ranking or starting salary positioning?

While I’m not directly involved in recruitment, the principles we follow align closely with those in many organizations I’ve worked with, including my experience in executive recruitment. When hiring, we consider efficiency, skill, and experience, particularly in the development space. We recruit from organizations with which we’re familiar, and our ability to attract talent is influenced by external market pressures, our location, and internal pay relativity. These factors guide how we position candidates and make offers.

Q: Given the challenge of forming an international workforce from diverse domestic markets with varying conditions, how do you ensure equity in positioning individuals, especially when salary history may not be a relevant factor?

For us, pay history doesn’t drive our offers. We’ve established grade levels and salary ranges for jobs, and we focus on the skills and value an individual brings to the table. An individual’s nationality or country of origin is not a factor in determining pay; it’s based solely on their proficiency and contribution.

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Q: When managing a workforce through their career growth, how closely are the approaches for pay movement, learning and development, and promotion aligned or integrated?

To answer your question, AIIB is still growing and evolving, particularly compared to other multilateral development institutions. One of the strategic decisions that stood out to me when I joined was how the Bank integrated performance and reward into a single portfolio. Unlike many organizations that separate performance management from compensation and benefits, AIIB brings them together, signaling their close interconnection. As a result, our efforts to recognize growth, reward staff, and promote individuals are well integrated, and these factors play a key role in decisions around career advancement and pay increases. So, yes, they are closely linked.

Q: While you have solid frameworks in place, different occupations offer varying opportunities, which can sometimes be seen as an equity issue. How much counseling do you provide staff about realistic expectations, especially since some roles are core to the Bank’s function, while others may be more contingent? Are staff well-informed about what to expect in these areas?

AIIB is still an evolving organization, and many discussions are happening at both individual and departmental levels. Last year, we implemented a strong HRBP function, which is still relatively new. Our HRBPs have been working hard to provide counseling and coaching to both managers and staff. While I’m not involved in all these conversations, I’m available to clarify policies, intentions, and technical details. Ultimately, our HRBPs are on the front line and leading these discussions.

Q: As the Bank has grown and welcomed more members, how do you see its reputation and culture evolving, particularly in terms of fairness and workplace policies? How important is it for both staff and members that AIIB is perceived as a fair and equal place to work?

It’s incredibly important to us. In every interaction with our members and board, we emphasize and demonstrate, with data and insight, that fairness and equality are ideals we’re actively striving to achieve. This focus is at the forefront of all our workforce management efforts and will remain our guiding principle as we move forward.

Illustrated cover showing diverse people in a birch tree forest with text highlighting workforce management topics, including transparency, compensation, and skills. Title reads "COMMUNITY.

This interview is part of the inaugural edition of Community Magazine, Birches Group’s publication on workforce management. Subscribe to receive the full issue and future updates. Subscribe here

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DRC UNDER SIEGE: M23 ADVANCE FUELS HUMANITARIAN CRISIS AND BUSINESS DISRUPTION

Written by Noel Madolid on . Posted in Uncategorized.

Birches Group provides insights into volatile labor markets that are making news headlines, focusing on key developments.  

Since early 2025, the Democratic Republic of Congo (DRC) has been gripped by escalating conflict as the March 23 Movement (M23) armed rebel group seizes critical urban centers, including Goma and Bukavu. This surge in violence has rapidly destabilized the region, creating an exceptionally volatile environment for organizations and their employees. The situation demands immediate and decisive action from organizations operating in Africa’s second-largest country. 

To navigate these complex challenges, organizations must adopt resilient and adaptable strategies, potentially including the implementation of special measures to address the unique demands of this crisis. Establishing clear protocols for these measures enhances organizational resilience and operational continuity, even in the face of extreme adversity. 

The M23’s renewed offensive 

The intensifying crisis in the DRC is rooted in the dramatic resurgence of the M23. The rebels, the most prominent of over 100 armed groups vying for dominance in the mineral-rich east, reignited their offensive after a period of relative dormancy, exploiting existing regional tensions and vulnerabilities.  

This resurgence has demonstrated a level of organization and military capability that caught both regional and international observers off guard. Recent intelligence reports suggest advanced weaponry and sophisticated logistical support, potentially indicating external backing and fueling regional tensions. 

Rapid territorial gains 

Over the past several weeks, the M23 expanded its territorial holdings in eastern DRC. In late January 2025, they occupied Goma, the provincial capital of North Kivu and an economic and humanitarian center. This resulted in the large-scale displacement of civilians. In mid-February 2025, the crisis when the M23 took possession of Bukavu, the provincial capital of South Kivu, further extending their area of control. The rebel group has threatened to continue their offensive toward Kinshasa, the DRC’s capital. 

The Congolese government, backed by regional and international forces, is struggling to contain the M23’s advances. Protests in Kinshasa have seen demonstrators demanding immediate government action and expressing anger at the international community’s perceived inaction. 

Humanitarian crisis 

The fall of both cities has caused massive displacement, straining humanitarian resources. Millions have fled, seeking refuge in overcrowded camps. The insecurity has forced most organizations to suspend operations, leaving families without essential supplies. 

The UN High Commissioner for Refugees (UNHCR) reports that the escalation of violence since January 2025 has pushed the number of internally displaced persons to a record high of 6.4 million, with over 90,000 seeking refuge in neighboring countries. 

These figures underscore the immense human cost of the conflict, with hundreds of thousands of individuals and families uprooted from their homes, often multiple times, seeking safety and necessities. 

Regional instability 

The implications of this conflict extend far beyond the DRC’s borders. The M23’s resurgence has destabilized the region, exacerbating existing tensions between neighboring states. Allegations of Rwanda’s support for the M23 remain a central point of contention.  

Efforts to find a peaceful resolution have included direct talks between the presidents of the DRC and Rwanda in Doha, Qatar, on March 18, 2025. However, parallel peace negotiations between the Congolese government and the M23 in Luanda, Angola, were called off, with the M23 citing European Union sanctions as a primary reason. 

Impact on organizations and employees 

Beyond security threats, the conflict ignited a humanitarian crisis, compounding operational challenges. The workforce is devastated, with disrupted services, fear, and the threat of violence. 

  • Mass displacement. The UNHCR reports extensive displacement, with communities fleeing to overcrowded camps and neighboring regions. 
  • Economic disruption and market instability. International financial institutions report severe disruption of economic activity, impacting various sectors, including the crucial mining industry. 
  • Heightened security risks. Increased kidnappings, looting, and armed robberies, along with heightened security presence and checkpoints, pose significant risks. 

The situation in eastern DRC remains dire and unpredictable, with concerns about the a wider regional war. UNHCR Chief Volker Türk warned of potentially catastrophic consequences, “If nothing is done, the worst may be yet to come, for the people of the eastern DRC, but also beyond the country’s borders.” 

The necessity of a Special Measures Policy 

Operating in volatile labor markets like the DRC, with its displacement, economic disruption, and security, requires more than standard human resources (HR) policies and procedures. Traditional HR policies often prove inadequate in the face of such instability, demanding a proactive and resilient approach. A comprehensive Special Measures Policy becomes essential. 

A Special Measures Policy assists managers and supports staff during crises like civil unrest. It defines clear triggers and immediate responses to protect employees and ensure business continuity while the organization adapts to changing labor market conditions in the following months. 

Crisis HR: The Birches Group advantage 

The current situation in the DRC requires a strategic approach to workforce management. Organizations must prioritize HR policies that mitigate risk and ensure operational continuity. 

Birches Group provides specialized expertise in designing Special Measures Policies tailored to high-risk environments. We help organizations develop policies that fit local conditions while aligning with corporate objectives. 

For organizations committed to maintaining operational resilience and safeguarding their workforce in the DRC, strategic HR planning is essential. Birches Group offers the expertise and resources necessary to navigate these challenges effectively. Book a strategy call with us today. 

References 

A diverse group of four people gathers around a laptop in an office setting, smiling and engaged. One woman uses a wheelchair. Plants and office supplies are visible in the background. Workplace Equity

EQUITY IN ACTION: ENSURE FAIRNESS ACROSS HR

Written by Noel Madolid on . Posted in Resources.

We’ve all heard the buzzwords: diversity, equity, inclusion. But how many organizations walk the walk when it comes to equity in managing their organization? It’s time to move beyond theoretical discussions and translate those well-intentioned conversations into concrete actions. 

Our “Equity in Action” series explored the building blocks of a truly equitable workplace, from establishing the equivalent worth of jobs and developing a grading structure to utilizing salary surveys and implementing a salary scale and fair pay management mechanisms. In this final installment, we’ll share how your organization can embed equity into every facet of its HR program, whether it’s recruiting new talent or planning for your successors.  

The key is a unified and objective approach to assessing employee skills and capabilities throughout the entire employee lifecycle. Think of standardized processes, clear metrics, and tools that evaluate employees based on their work. This blog post will share how you can integrate equity into your HR functions, ensuring fairness in every stage of a staff member’s journey. 

The challenge of subjectivity and flexibility 

For far too long, HR processes have been marred by subjective assessments. This approach not only hampers the quest for equality but also exacerbates inequality when each HR function is handled on a case-by-case basis. 

Are performance evaluations based on objective criteria, or are some staff members given more leeway than others? Is career advancement based solely on merit and potential, or do personal relationships and “gut feelings” come into play? Are all employees given equal access to training and development programs, or are specific individuals favored? 

These subjective and flexible approaches can create an uneven playing field, where some staff members are inadvertently given an advantage while others are held back. 

To counteract this, organizations need to shift toward a standardized, objective, and consistent approach to evaluating skills and competencies. This involves: 

  • Establishing clear criteria and metrics. Define what success looks like for each grade level and use these objective measures to assess their contributions and performance. 
  • Implementing standardized evaluation processes. Use the same tools and framework for all staff members in similar roles to ensure consistency and fairness. 
  • Providing regular and transparent feedback. Give staff members clear, actionable feedback based on objective data to help them understand their strengths and areas for development. 

By removing subjectivity and flexibility and, more importantly, embracing a more standardized approach, organizations can create a more equitable workplace where all employees are judged on their skills and work output and have a fair chance of succeeding. 

Birches Group’s five-step approach to achieving equity 

In our first post in this “Equity in Action” series, we introduced Birches Group’s five-step approach to achieving equity in compensation management. We highlighted the urgent need for organizations to move beyond discussions and take concrete action to address inequities in their compensation structures.  

Building on this framework, we examine how this integrated approach can be applied across all HR functions, creating an equitable workplace where every process— from recruitment to succession planning—is grounded in the principle of establishing the equivalent worth of each job within your organization. By minimizing the influence of personal biases at every HR function, we can ensure a level playing field for all staff. 

This integrated approach, as we discussed in the first post, offers a multitude of benefits that can transform your organization: 

  • It reduces bias and increases fairness by relying on objective criteria, thus minimizing the impact of unconscious bias and ensuring all employees are treated equitably.  
  • This approach also enhances transparency and trust. Clear, consistent processes foster transparency and build trust between employees and the organization. 
  • Furthermore, standardized processes streamline HR operations and free up resources for strategic initiatives, improving efficiency and effectiveness.  
  • Finally, objective data offers valuable insights into workforce trends and enables informed, data-driven decision-making. 

However, we understand that bridging the gap between the theoretical ideals of equity and real-world implementation can be challenging. Organizations often encounter obstacles like bias creeping into decision-making despite best intentions, vague criteria making it difficult to assess staff members objectively and consistently, and inconsistent processes leading to unfair treatment. 

To overcome these challenges, we encourage you to conduct an equity assessment and evaluate your current HR policies and practices critically. Ask yourself these questions: 

  • Does the candidate’s skill level determine your starting salaries, or are they influenced by factors like negotiation skills or salary history?  
  • Are your performance reviews based on clear, measurable metrics based on the expectations of the job, or are they prone to subjectivity and bias?  
  • Are your promotion criteria transparent and consistently applied, or are they open to interpretation?  
  • Does your compensation structure reflect the value of each grade level, or are there unexplained pay gaps?  

These are areas where most of the inequities and inconsistencies begin. 

An integrated framework and tool, like Birches Group’s CommunityTM platform, can be especially invaluable.  

It provides standardized processes to ensure consistency and fairness across all HR functions. Additionally, CommunityTM presents clear metrics to deliver objective measures of skills, competencies, and performance.  

By reducing reliance on subjective judgment, your organization can minimize the impact of bias and promote data-driven decision-making. This creates a truly equitable workplace where all employees are empowered to reach their full potential. 

Applying the approach across HR 

Let’s explore how our integrated approach to achieving equity can be applied across various HR functions: 

Recruitment 

Imagine a recruitment process where every decision is rooted in the defined skills profile of the job. This means targeting your recruitment efforts to attract candidates with the specific skills and competencies needed for the role, ensuring a diverse pool of qualified applicants. It also means using standardized assessments to evaluate each candidate’s skills and abilities, eliminating bias and ensuring that hiring decisions are based solely on knowledge and experience.  

Finally, it involves determining starting salaries based on demonstrated skill level within the respective pay range of the job, eliminating the need for salary negotiations and ensuring pay equity from day one. 

Pay movement 

With an integrated approach, pay increases become a transparent and objective process. Salary adjustments are tied to clearly defined skills growth and contributions, ensuring all staff members are rewarded fairly for their development. Clear criteria are established for salary adjustments, such as acquiring new skills, taking on increased responsibilities leading to bigger contributions, reducing the potential for pay gaps, and ensuring that pay decisions are data-driven. 

Learning & development 

Our approach transforms learning & development from a generic offering to a targeted investment in employee growth. It starts with using objective skills assessments to identify individual skill gaps and development needs, enabling personalized learning journeys.  

Then, staff members work on their personal learning & development assignments specifically tailored to address those identified needs either deeper into the role or work toward the next higher grade level, maximizing employee growth and engagement. This fosters a culture of continuous learning & development, where staff are encouraged to acquire new skills and advance their careers.  

Furthermore, our approach promotes shared responsibility between managers and employees for development, with managers actively supporting their team members’ growth by providing/identifying opportunities and staff taking ownership of their learning journey. 

Succession planning 

Organizations can build a strong leadership pipeline by applying an objective lens to succession planning. Standardized criteria assess employees’ readiness for promotion, ensuring that advancement decisions are based on merit and potential, not favoritism.  

Clear succession pathways and policies are established based on skills and competencies, providing staff members with a roadmap for career progression. This cultivates a talented pool of future leaders, ensuring the long-term sustainability of your organization.  

How CommunityTM can support your equity journey   

Putting these principles into practice may seem daunting, but Birches Group’s CommunityTM framework and tool can seamlessly guide your organization through the five-step approach from start to finish. This integrated platform provides the structure and resources you need to operationalize equity across all your HR processes. 

CommunityTM offers a range of solutions designed to support your equity journey: 

  • Centralized skills data. CommunityTM presents a central hub for managing all your skills data, enabling you to create a comprehensive skills inventory for your workforce and track staff skills development over time. This centralized system ensures that everyone is assessed against the same objective criteria. 
  • Objective assessment tools. With built-in assessment tools that utilize the same consistent framework, CommunityTM helps you evaluate skills and competencies objectively, minimizing bias and ensuring fair treatment.  
  • Data-driven insights. CommunityTM generates powerful data-driven insights that inform your decision-making across all HR functions. Identify skill gaps, track pay equity progress, and analyze workforce trends to make informed decisions that promote fairness and transparency. 
  • Support for key HR functions. CommunityTM offers the tools and resources to embed equity into every stage of the employee lifecycle, from recruitment and pay movement to learning & development and succession planning. 

By leveraging the power of CommunityTM, your organization can move beyond theoretical discussions of equity and take concrete action to build a fair workplace. With its integrated approach, objective assessment tools, and data-driven insights, Community™ empowers you to create an organization where every employee can thrive. 

What about performance? 

At this point, you might be wondering: “This all sounds great, but where does performance fit into this approach?” 

While our focus has been on building a foundation of equity through skills and competencies, we understand that performance is still a critical factor in employee development and motivation. Assessing skills and rewarding performance are separate but related pieces of the puzzle in retaining and motivating your workforce.  

Think of it this way: skills represent an individual’s growth in knowledge and experience, while performance reflects how effectively they use those skills to achieve results. Both are essential for a thriving organization. 

CommunityTM addresses this with a robust performance management system that offers a simple but comprehensive view of staff performance. This platform allows you to provide 360° feedback from various internal and external stakeholders. In addition, CommunityTM enables your organization to acknowledge and reward staff for their contributions, celebrating both those who meet expectations and those who exceed them, fostering a culture of appreciation and broad staff motivation.  

It’s important to emphasize that performance should be assessed solely for rewarding achievement. It should not be a factor in determining a staff member’s pay increase or promotion eligibility, as those decisions should be grounded in skills assessment. 

By keeping this distinction, you can ensure that your performance management system serves its purpose: to motivate employees and reward their contributions.  

Get in touch with Birches Group 

Achieving true equity across your HR processes requires a commitment to objectivity, transparency, and a unified approach. It demands a shift from ad-hoc arrangements to standardized processes, from subjective judgments to data-driven decisions. 

Birches Group is your trusted partner in navigating this journey. Our proven five-step approach and the CommunityTM platform provide the framework and tools you need to operationalize equity across your organization. 

Ready to create a workplace where every employee has a fair chance to thrive? Contact Birches Group today. Our team of experts is prepared to offer the guidance and support you need to make equity a reality. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

A woman in a polka dot shirt is sitting at a desk, using a laptop, with a cup nearby.

WHY GETTING PAY AND BENEFITS RIGHT IS CRUCIAL FOR NGOs

Written by Bianca Valencia on . Posted in Resources.

Managing a workforce, especially compensation, presents significant challenges for many non-governmental organizations (NGOs). Unlike the private sector, many NGOs trail behind in having an established compensation philosophy and program. This gap hinders the ability of organizations to attract and retain the skilled staff necessary to achieve their mission, particularly in competitive labor markets like the United Kingdom (UK). 

Despite the desire to offer competitive pay and benefits, NGOs—particularly those reliant on government or donor funding—are under scrutiny to demonstrate good value. This kind of scrutiny requires responsible compensation management, not only for core jobs working in head offices but also for program staff operating in the field. Salaries must be set objectively based on the cost of labor rather than ad hoc or solely on the cost of living. 

To overcome this, NGOs must prioritize an integrated compensation approach. Competitive salaries and benefits packages help NGOs attract and retain skilled individuals passionate about their cause. 

This blog post explores the importance of equitable pay and benefits strategies that attract and retain talent, drive success, and maximize your NGO’s impact. 

The competitive NGO landscape

The UK’s NGO sector is highly competitive for talent. Skilled professionals, from program managers to fundraisers, have many organizations to choose from. NGOs must remain competitive, as these professionals are naturally drawn to organizations offering competitive compensation and benefits and demonstrating a strong alignment with their values. 

In this environment, NGOs can’t afford to lag. Pay equity and transparency are not just buzzwords but essential for recruitment and retention. Today’s workforce is increasingly aware of pay disparities and seeks employers who prioritize fair treatment and equal opportunities. Salary benchmarking plays a critical role in demonstrating this commitment. 

To attract and retain skilled talent, NGOs need to base compensation on the cost of labor in the market and benchmark against jobs of equivalent value. This approach ensures competitive salaries that reflect the true value employees bring to the organization. airness but motivates staff to develop their skills and contribute meaningfully. 

The significance of salary surveys

Salary surveys are invaluable for NGOs, ensuring they offer competitive and fair compensation. Such surveys provide objective, comprehensive data on market rates for comparable roles, enabling informed decisions about pay and benefits. Here is why they’re a helpful addition to your HR toolkit: 

  • Objective benchmarking. Salary surveys enable NGOs to compare their compensation packages against jobs of equivalent value in the market, ensuring competitive salaries that attract and retain talent. 
  • Defensible compensation. Data from salary surveys allows NGOs to justify salary decisions to staff, management, and donors, promoting transparency and accountability. 
  • Market insights. Salary surveys provide a broader market view than internal data, offering insights into emerging trends, regional variations, and sector-specific compensation. 
  • Gap analysis. Participating in salary surveys reveals areas where compensation may fall behind, including hiring rates, competitive salaries for specific grade levels, benefits, and more. 
  • Benefits competitiveness. Surveys like those from Birches Group often include data on benefits, allowing NGOs to assess their offerings and make necessary adjustments. 
  • Compliance with market practices. Using salary surveys helps NGOs align with sectoral standards and legal requirements. 
  • Proactive budgeting. Salary surveys help NGOs anticipate salary expenses and plan budgets effectively, ensuring financial sustainability. 
  • Trend analysis. Tracking salary data over time allows NGOs to stay ahead of changing market trends and adjust compensation strategies accordingly. 

Salary surveys provide a comprehensive and objective market view that your organization couldn’t easily obtain independently. They offer insights into gaps between your target position and the market, the competitiveness of your benefits, and adherence to best market practices. Salary surveys help you stay ahead of trends and assist with budgeting for your organization’s biggest expense—salaries. 

Final thoughts

In the NGO sector, getting pay and benefits right is paramount for attracting and retaining individuals who drive meaningful change. Prioritizing compensation allows teams to maximize their impact.

Take the first step: Assess your current compensation program, benchmark against sectoral standards using reliable salary surveys, and seek expert guidance. Birches Group provides NGOs with the most comprehensive compensation and benefits surveys dedicated to the development sector, including accurate and consistent job matching, salary data captured by grade level, and extensive benefits information.

We offer tailored compensation and benefits solutions to help your organization attract, retain, and empower talent worldwide. Contact your representative at Bond to learn how you can participate and access our surveys. Investing in your people is an investment in your mission, ensuring long-term sustainability and effectiveness in addressing critical social challenges.

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

EQUITY IN ACTION: IMPLEMENT FAIR PAY MANAGEMENT MECHANISMS

Written by Noel Madolid on . Posted in Resources.

In pursuing workplace equity, we’ve examined the critical steps: establishing equivalent worth, developing a job grading structure, utilizing comprehensive salary surveys, and implementing a well-defined salary scale. These foundational elements create the framework for fair pay. 

But the journey continues. Transitioning from establishing the framework to actively managing pay is where equity flourishes. 

It’s time to take the final step: implementing fair pay management mechanisms. This ongoing process ensures that your meticulously crafted pay structure remains relevant and equitable long-term. Without equitable management, even the most robust compensation program can falter, leading to pay disparities and inequities. 

This post examines the essential mechanisms for ongoing pay management, empowering your organization to cultivate a genuinely equitable and fair workplace. 

Why traditional pay progression fails to achieve equity 

Pay management mechanisms are the processes and policies that govern how your people move through your established salary ranges. They drive your compensation program, ensuring ongoing equity within your organization. 

However, traditional approaches to pay progression often miss the mark when it comes to fairness. Why? Let’s examine two common methods: 

  • Time-based steps. While clear, predictable, and easy to administer, this approach suffers from a critical flaw: everyone receives an increase regardless of performance. Someone exceeding expectations gets the same raise as someone barely meeting minimum standards. This can be incredibly demotivating for high performers and fails to recognize individual growth. 
  • Pay-for-performance or merit increases. This method aims to reward top performers with higher raises, but it, too, often falls short. Pay increases are frequently too small to truly differentiate meaningfully between performance levels. Additionally, basing salary adjustments solely on annual performance reviews is problematic. Performance can fluctuate year to year, meaning a one-time “good” year can lead to a permanent salary increase, even if performance later declines. 

Both approaches fail to create a truly equitable pay structure, lacking the flexibility and nuance to accurately recognize individual contributions and growth. This can lead to pay gaps, dissatisfaction and, ultimately, a less equitable workplace. 

To create a truly equitable pay system, organizations must move beyond outdated models and explore more objective, transparent, and equitable approaches to pay progression. 

A truly equitable pay management system hinges on transparency and clearly defined criteria for progression. This means establishing a clear and consistent pathway for employees to advance through the salary scale based on objective measures such as skills, competencies, and contributions aligned with their jobs and the organization’s mission. 

Think of it like a roadmap. Every employee should understand the route to progress within their role and have equal opportunity to reach their career goals. This fosters a sense of fairness but motivates staff to develop their skills and contribute meaningfully. 

Developing a system for staff progression through the salary scale 

Creating a transparent and fair system for salary progression is imperative for fostering a culture of equity. Here are key strategies to achieve this: 

Skills-based progression 

Implement a framework that objectively measures staff skills, linking it directly to pay progression. This means clearly defining the skills and competencies required at each level of the salary range and using standardized assessments to measure employee skills against these levels. Be transparent about how acquiring new skills or demonstrating increased expertise translates to salary increases or promotions. This approach ensures that pay progression is tied to tangible growth and development. 

Regular reviews and updates 

The market and your organization are constantly evolving. Regularly review and update your salary structure and progression system to demonstrate a commitment to fair pay. This allows you to maintain market competitiveness, address any internal pay disparities that may arise, and provide opportunities for employees to move through the salary range based on the growth of their skills and the impact of their contributions. 

Benefits of a structured progression system 

But why go to all this effort? Because a well-structured approach to pay movement offers significant benefits for both your staff and your organization. 

  • Increased transparency and trust. Employees understand how pay decisions are made, fostering a sense of fairness and trust in the organization. 
  • Enhanced motivation and engagement. Clear pathways for advancement motivate employees to invest in their development and contribute their best work. 
  • Reduced pay disparities and improved retention. Objective criteria minimize the risk of bias and discrimination in pay decisions, promoting equity and increasing employee satisfaction. 

How Birches Group’s Community™ Skills can help 

Developing and implementing fair pay management mechanisms can be challenging. But your HR team doesn’t have to go on this journey alone. 

At Birches Group, we believe that pay movement should be tied to the development and growth of staff’s skills and experience. As employees gain experience, they develop a deeper understanding of their role and accumulate the skills needed to help them be more effective and produce higher-quality work.  

Birches Group Community™ Skills provides a way to measure this experience. Organizations can use our framework and tool to structure their compensation systems, rewarding employees for growth and development within their roles, rather than solely relying on performance metrics. Organizations can link their compensation administration to the progression of skills in any number of ways, from assessing and setting the appropriate starting salary based purely on candidates’ skill levels during recruitment to managing pay movement within the salary range and tailoring learning and development assignments to guide staff development and career pathing. 

Contact Birches Group today 

Implementing fair pay management mechanisms and a structured progression system is not about ticking boxes. It’s about fostering a workplace where every employee feels valued, recognized, and rewarded fairly. By embracing the five-step approach to workplace equity, your organization can create a culture of transparency, trust, and opportunity. 

We understand that this journey can be complex. That’s why we encourage you to seek guidance from experts who can help you navigate the intricacies of building an equitable compensation program. 

Is your organization ready to achieve workplace equity? Contact Birches Group today. Our team of experienced consultants can provide the expertise and support you need. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

Equity in Action: Implement a Salary Scale

EQUITY IN ACTION: IMPLEMENT A SALARY SCALE

Written by Noel Madolid on . Posted in Resources.

Welcome back to our series on workplace equity! In our previous blog posts, we explored the foundational steps toward achieving a fair and equitable work environment, from establishing equivalent worth and developing a grading structure to utilizing salary surveys. We emphasized the importance of transparency and communication in building trust with your staff. 

Now, it’s time to take the next significant step in your equity journey: implementing a salary scale. While establishing clear job grades and salary ranges is essential, it’s only the beginning. A salary scale provides a structured framework for your compensation, ensuring consistent and fair pay across your organization. It acts as a roadmap for staff progression within those ranges, ensuring that growth and compensation are aligned in a way that’s both fair and motivating.  

In this post, we’ll discuss how implementing a well-defined salary scale can be a vital tool in your equity journey. We’ll explore the benefits of having pay ranges, guide you through developing a salary scale that supports your equity goals, and offer practical tips for successful implementation. 

Why a salary scale matters 

The salary scale defines the minimum, midpoint, and maximum pay for each role within an organization. The salary scale is the most important document in human resources, providing valuable insights into the organization’s structure, job grading, and the value placed on different grade levels. The overlap between grades also illustrates how staff can progress through the ranks. 

Think of a salary scale as a roadmap for compensation. This roadmap guides both employers and employees, ensuring everyone understands the organization’s compensation philosophy and policy.  

For employers, a clearly defined salary scale offers numerous advantages, including: 

  1. Budgeting and forecasting. Salary scales facilitate accurate budgeting and forecasting by providing a clear picture of salary costs. This predictability allows for better financial planning and resource allocation. 
  1. Transparency and trust. With clearly defined pay ranges, organizations promote transparency and build trust with their employees. Everyone understands the compensation philosophy and how their pay is determined, reducing the potential for confusion or resentment. 
  1. Legal compliance. Having a salary scale ensures compliance with equal pay regulations and lessens the chances of pay discrimination. By establishing clear criteria for pay, organizations minimize legal risks and promote fair treatment. 
  1. Talent attraction and retention. A competitive salary scale helps to attract talent and retain existing staff. When employees know their employer is ensuring their compensation is fair and competitive, they are more likely to stay with the organization and contribute to its success. 
  1. Pay movement based on skills growth. As staff develop their abilities and expertise, their value and contributions to the organization increase, and their compensation can reflect that growth. This framework ensures fairness and equity by recognizing employees for continuously improving and developing within their roles. 

Salary scales also provide significant value for employees: 

  1. Clarity and understanding. Employees gain a clear understanding of the salary range for their role and how their pay is determined. This transparency fosters trust in the compensation strategy. 
  1. Fairness and equity. A structured salary scale ensures pay is based on objective criteria, such as the equivalent worth of the job (job evaluation) and referencing external labor market conditions (salary benchmarking). This helps eliminate biases and promotes a sense of fairness. 
  1. Career growth. Salary scales provide a roadmap for career progression. Employees can see the potential for salary increases as they gain experience deeper into the range, or take on a higher level of responsibility and scope and advance within the organization. 
  1. Motivation. Knowing their pay is linked to skills growth motivates staff to perform well, seek development opportunities, and improve their capabilities. 
  1. Organizational culture. A structured pay scale provides employees with a sense of security and stability. 

Developing an equitable salary scale 

Developing an effective and equitable salary scale requires careful planning and execution. It involves creating a tool that reflects your organization’s values, ensures internal cohesion, and remains competitive within the labor market. Here are the key steps: 

  1. Establish a job structure. A clear job structure shows how jobs are organized and ranked based on their purpose, scope, and placement within the organization. 
  1. Develop a compensation philosophy. Your compensation philosophy outlines your approach to choosing comparable organizations, setting your desired market position (lead, match, or lag), and benefits package. 
  1. Benchmark salaries against the market. Assess your organization’s competitiveness by benchmarking your jobs against similar grade levels in the labor market. This step involves comparing your internal pay grades and salaries for specific roles with those offered by similar organizations. 
  1. Define your composition and position. Define your target market position and the criteria for selecting your target comparator organizations. 
  1. Tailor job levels. Adopt a tailored approach that reflects expectations around employment and opportunities for each job level. 
  1. Design your compensation package from a ‘total compensation’ perspective. In most markets around the world, especially in developing markets, benefits make up a significant portion of compensation. To truly be competitive in the markets you’re trying to reach, analyze your total compensation package to include cash and in-kind benefits that are common practice in those markets. Consider locally mandated benefits, market practices, and benefits that promote desirable behaviors. 

Implementing and maintaining your salary scale 

Now that you’ve developed your salary scale, the next step is to communicate your analysis to management and prepare to communicate the changes to your staff. 

Laying the foundation 

Before introducing the salary scale, it’s best to establish solid groundwork. Laying the foundation for your salary scale includes taking the following measures: 

  • Secure management buy-in. Clearly articulate the rationale behind having an up-to-date salary scale. Highlight the issues it can address, such as pay inequities, challenges in attracting talent, and potential legal risks. Underscore how the salary scale will contribute to a more equitable and competitive compensation structure, ultimately benefiting the organization as a whole. 
  • Establish a robust job evaluation process. Ensure that your job evaluation process is in place before developing your salary scale, as it provides the basis for slotting jobs accurately within the structure. 
  • Ensure transparency. Openly communicate how the new salary scale will be implemented. Outline the timelines, phasing plans, and any potential impact on existing compensation arrangements to manage expectations.  

Rolling out the scale 

Once the groundwork is laid, the focus shifts to effectively rolling out the new scale and ensuring its smooth integration into your compensation strategy: 

  • Equip managers for effective communication. Managers play an important role in communicating the changes to their teams. Provide them with the necessary resources, such as talking points, FAQs, and training on handling sensitive questions. Doing so will help ensure a smooth transition and minimize potential misunderstandings or concerns. 
  • Link skills growth with salary progression. Clearly define the link between growth in knowledge and experience and salary progression within the scale. Establish transparent expectations and criteria for advancement, ensuring employees understand how their growth in skills can influence their compensation growth. 

Maintaining and reviewing the scale 

Implementing your salary scale is not a “set it and forget it” exercise. Continuous maintenance and review are crucial to ensure its ongoing effectiveness and relevance. This ongoing process includes: 

  • Regular reviews and updates. Markets are dynamic, and your salary scale should be, too. Review and revise your scale annually to stay competitive. Consider factors such as labor market data and industry trends to ensure your compensation remains aligned with the labor market. 
  • Conducting pay equity audits. Regularly conduct pay equity audits to identify and address any potential gaps or inconsistencies within the salary scale. This should be a continuing process to ensure the scale remains fair, effective, and compliant. 

Partner with the experts at Birches Group 

Developing, rolling out, and maintaining your salary scale can be complex. While the tips and best practices outlined above provide a solid starting point, navigating the intricacies of compensation management often requires specialized expertise. This is particularly true when it comes to implementing fair pay management mechanisms, which is the focus of our final blog post in our Equity in Action series. 

Successfully integrating fair pay practices into your compensation strategy calls for a deep understanding of legal frameworks, labor market dynamics, and ethical considerations. This is where partnering with experienced compensation professionals can make all the difference. 

Our team of experts specializes in: 

  • Pay equity audits. We conduct comprehensive audits to identify and address any gender, race, or other pay gaps, ensuring your organization meets legal requirements and promotes fairness. 
  • Salary scale design. We design robust and competitive salary structures tailored to your organization’s needs and market benchmarks. 
  • Compensation strategy consulting: We provide guidance on developing and implementing effective compensation strategies. 

Birches Group’s consultants have years of experience designing salary scales for different types of organizations. Download our comprehensive e-book, Strategy, Structure, and Synthesis, to learn more.  

Ready to create a fair and equitable compensation program? Contact Birches Group today for a strategy consultation. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.