10 things to know about reward

24th March 2025

Julia Hanna

What are the constant ‘truths’ of the reward landscape?

With new approaches and legislation always just around the corner, you’d be forgiven for thinking there is no such thing.

But if change is a constant in our world, it is not the only one.

In the first of a new series of ‘Top 10’ blogs, written to celebrate ten years of Verditer Consulting, we take a look at ten truths that continue to rule the roost when it comes to pay and reward.

1. We need to be more open about pay

There’s plenty of evidence that the more employees understand how pay is set, the more it’s perceived as fair. And in any event, legislation will likely require greater transparency.

2. Market rates matter, but so does internal equity

External pay benchmarking is important, but it’s not the full answer to setting pay. It needs to be assessed critically to make sure jobs of equal value are paid similarly. The recent Next case highlighted market data can’t be the sole justification of pay differences.

3. Job evaluation doesn’t need to be complex and secret

If employees are to understand where their role sits in the organisation and how to progress, the framework used to level jobs should simple and shared openly. It’s also a great foundation for pay structures.

4. Sweat the small stuff to close pay gaps

It’s not large corporate gestures that close pay gaps, but small progressive actions. A good place to start is to include pay ranges on job adverts, stop asking for salary history on hire and promotion, and investigate where discretionary decisions (e.g. pay awards, appraisal ratings, promotions) are adversely affecting one group compared to others.

5. Market data is inherently biased

Whether it is the traditional salary survey or the new databases that group in-time job ads, market data will reflect back that typically ‘masculine’ roles are valued more than ‘feminine’ ones in society. Use pay ranges that group data for ‘roles of equal value’ to bring the two together.

6. Flat rate pay increases aren’t necessarily fair

‘Fair’ means different things to different people, be clear about what it means at your organisation. But one thing we do know is that flat rate pay increases exacerbate pay gaps as they don’t provide the opportunity to address differentials in pay.

7. We need to get our diversity ducks lined up

Ethnicity and disability pay gap reporting is included in forthcoming legislation, so start to gather employee data now as it takes time and trust to build declaration rates.

8. Don’t throw away your bonus spend

If bonus plans aren’t aligned to performance (individual and / or corporate) and your culture, they won’t drive behaviours, results or be valued by employees.

9. Pay needs to be right before adding whistles and bells

There’s no point adding innovative benefits to your reward package, if employees can’t pay the rent. Get your foundations right first.

10. Benefits and wellbeing enhance employee engagement

Employees are often purpose and value driven, so aligning your benefits offering with your mission and values will increase received value and sense of belonging.

How we can help

At Verditer, we are specialists in creating a transparent approach to pay and reward. Do get in touch if you’d like our help with developing a reward strategy, creating pay foundations, or with pay gap reporting.

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