Set the right pay rates

It will almost certainly cost you time and money to set up a new pay-rate system, or even change an existing one.

Getting started

In the first instance, it could be helpful to set up a checklist detailing the steps you plan to take. Remember to:

• plan the process for selecting or adapting a system
• involve workers, both full-time and part-time
• get expert advice if needed
• agree changes with workers' representatives, if any (or with workers individually where there are no representatives)
• evaluate the good and bad points of your existing system, if you have one
• decide what the objectives of the system need to be, eg increased productivity
• consider the most suitable pay differentials and links for your business
• think about how workers might be able to earn increases to their basic pay, eg through annual increases, bonuses, or other payments based on performance assessment
• communicate progress regularly to all workers
• look out for potential pitfalls, such as changes to pay differentials and scope for discrimination
• make sure the system is properly maintained
• review the system's performance
• ensure women returning from maternity leave get any pay rises occurring in their absence

Pay and wages guidance from Acas.