Much is being done by the government to improve the gender pay gap but that is not the only pay gap that is worrying employees, as recent research from the CIPD has revealed that the growing pay gap between CEO pay and the rest of the workforce is causing them to be demotivated.
Therefore, it is important to evaluate Executive Pay and see if there are any requirements.
Three ways to go about this include:
1) Publication or communication of CEO pay decisions
First of all, the transparency of pay is important, including how bonuses are calculated and how it is linked to CEO performance goals. Communicating CEO pay in good and bad times/readjusting if performance is poor is crucial because if CEOs receive a substantial reward when the organisation is struggling financially then this can cause resentment within the workforce, however rewarding CEOs for making the organisation successful is more justifiable.
Reviewing your CEO pay decisions with an expert independent consultant can be reassuring to employees and ensures that appropriate performance measures are considered.
2) Rewarding CEOs for promoting employee happiness
Secondly, it is worth considering rewarding CEOs based on how they promote employee well-being and development because this ensures that the workforce are being treated well and likely to be more motivated at work as a result.
Croner Reward has a consulting team that specialise in Directors’ Remuneration and structuring a competitive, justifiable pay and benefits package that is in-line with the market and takes into account any specific performance measure you identify. We can also conduct employee attitude surveys to gather their feedback on motivation, satisfaction and engagement; reporting upon the results for you.
3) Giving more power to remuneration committees
Thirdly, giving more influence and developing the knowledge of remuneration committees will allow them to feel comfortable when adjusting pay.
Again, Croner Reward has a team of consultants who can support your remuneration committee by providing over 40 years’ worth of experience in the pay and benefits industry; working for organisations of all sectors and sizes.
To review your CEO remuneration package today, please call 01785 826 251 or e-mail email@example.com.