The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.
1. The main External Factors are:
a. Political: the job market in the UK is split between Public sector ie Government and Private sector. Government policies have control of reward strategy within the Public
It emerged that the woman, whose jobs were the same pay grade as their male counterparts, who worked as refuse collectors, road workers, grave diggers or street cleaners, but who were not entitled to the same bonuses and paid much less as a result (up to 19,000GBPpa). The Supreme Court ruled in the women’s favour under the equivalent work ruling.
• Work of Equal Value: This is the most difficult to determine and is normally assigned to an independent expert by the Employment Tribunal. An example would be Pickstone & Others v Freemans plc (1988). Female warehouse operatives claimed against their employer for equal pay with their male checker warehouse operatives as they were doing work of equal value. The case was dismissed initially by the tribunal as the woman was also employed in ‘like work’ and’ work rated as equivalent’ with that of a man other than her comparator . However this was over ruled on appeal and she can make a claim for Equal value work. iii) Age Discrimination: The Employment Equality (Age) Regulations were introduced on 1 October 2006 (now included within the Equality Act 2010) to make unlawful to treat any employee differently to any other employee in respect of their age. This includes paying people based on their age (other