Q1 Newsletter

Welcome to our Q1 Newsletter! We hope that the start of 2024 has been productive and fruitful to you. Easing into this year, we are seeing new trends emerge in HR and pay & reward, which we are excited to share with you below.

– Lousie Haines, Head of Consulting

Insights Insider

When it comes to the top HR trends and priorities for 2024, pay transparency is proving to be one of the hottest topics – especially for employees. So what is it, and why is it so important?

In a volatile economic climate, with the recent soaring inflation and a cost-of-living crisis piled on top, it’s no wonder that pay and reward is a high priority for employees. But it’s not just about the numbers on a pay slip any more. Equitable pay and pay transparency are rapidly increasing in importance as workplace culture shifts towards greater fairness, trust and inclusivity.

At a time when businesses are facing increased scrutiny around salaries and remuneration – especially at the senior leadership level – it is vital that employers are aware of employee expectations around pay transparency as the issue gains traction in the modern workplace. For example, Talent.com research found that 74% of job seekers believe pay transparency fosters a fairer work environment for all.

It is such a balancing act for HR and Reward teams, and we have been supporting Clients in navigating this challenging pay landscape. As we move into 2024, the priorities for our clients are to create agile workforces and to support retention.

So, pay transparency isn’t just about putting salaries on job ads (although this is helpful): it’s about fostering a culture of fairness and equality, and creating a workplace where employees understand their pay grades and progression opportunities. With greater transparency around all issues of pay, there are reduced pay gaps, and there is greater trust – which ultimately leads to better employee engagement and satisfaction.

The EU’s newly introduced Pay Transparency Directive has brought into force a new set of requirements around equal pay, and these forward-thinking EU reward approaches are certain to impact UK employers and bring pay transparency to the forefront. So, what can your organisation do to stay ahead of the curve?

Firstly, it’s important to start with internal transparency – this could mean ensuring there are clear pay structures, progression pathways and a culture of openness and trust inside an organisation before being externally transparent.

Secondly, conducting regular pay audits to highlight any internal inequalities can help companies to proactively tackle any issues that arise. Here at HRC we can support your business with equal pay audits, gender pay gap reporting, pay progression frameworks and more – get in touch to learn how we can help!

– Netta Peglar, Project Support Coordinator

News

Here’s a snapshot of the work we’ve been doing for our clients...

Housing Association Pay Award Review

Following on from similar reports completed in 2022 and 2023, HRC delivered its annual Pay Award Review for the social housing sector in January 2024. The report was compiled from the findings of a survey we sent out during December, which gained responses from 40 major housing firms, and provided data around predicted pay award levels within the sector for 2024 – as well as insights around hybrid working policies and top HR priorities for the coming year.

A snapshot of the findings…

• It was found that for 68% of the respondents, the likely pay award for 2024 will be in the range of 4.1 – 5.0%. This represents a decrease from 2023, when the average was 5.5%.
• The top HR priorities for 2024 were found to be Employee Engagement and Learning & Development and Upskilling.

Salary and Benefit Benchmark Reviews

We have recently been commissioned to review salaries for a number of international consultant roles within the global transportation and infrastructure consultancy market. This has been a fascinating project, speaking to post holders across the Americas, Asia and Europe!

Recent events…

HRC presented in January at the UK Finance and Henley Insights Group event, aimed at foreign banks.

It was found that although only a small number of foreign banks currently link their reward strategies to ESG metrics, this is something that’s being widely considered for implementation over the next 12 months – as well as new targets around the representation of women in senior leadership positions, and employee benefits with a focus on sustainability.

A Recent testimonial

Peabody commissioned Louise and Henley Reward Consulting to conduct our gender and ethnicity pay gap reporting. Not only did Louise come back to us with the calculations quickly and effectively, she provided independent consultancy advice, as well as a contextual report and narrative to support us in our strategy to bridge the gap. I would highly recommend Henley Reward Consulting in supporting organisations with their gender/ethnicity pay gap reporting, as well as ongoing consultancy advice within the ED&I arena.

Shaun Kennedy, Head of Diversity & Inclusion, Peabody Housing Group

Market Stats

• The expected value of pay awards over the year to August 2024 is a median of 5.0%
• The Consumer Prices Index (CPI) stood at 4% in December 2023
• In the 12 months to the end of Dec 2023, public sector pay awards stood 0.8% above the private sector
• The Gender Pay Gap among all employees decreased by 0.1% in 2023 to 14.4% – a continued decrease from pre-Covid levels

Keeping up to date with regulatory requirements and equality measures, understanding your market, and providing a competitive benefit scheme are all crucial to your company’s success. Read on to find out how we can help your business to thrive.

Henley Reward Consulting: Our Services

In a nutshell, we can…

• Benchmark Executive and Board Remuneration structures and componants, including LTIPs, to ensure your leadership team are competitively rewarded
• Benchmark wider directorates, as well as conduct full organisational reviews where required.
• Benchmark individual roles at any level where there are pockets of challenge.
• Benchmark across multiple sectors, as well as internationally.
• Develop pay grading structures, as well as access job levels and structures to ensure your pay and career structures are aligned.
• Conduct a competitive health check of your internal benefits, looking at either individual components such as family policies, car provision or insurance for example, or indeed the full benefit proposition.
• Deliver gender / ethnicity and wider pay gap calculations to meet regulatory reporting standards, but importantly we can deliver deep dive analysis into what those numbers mean, identifying risks and priorities to support the bridging of any pay gaps. We can also support with equal pay audits
• Benchmark ED&I policies, as well as wider HR policies to provide you with targeted market intelligence to drive innovation and best practice.

If you are interested in any of the above, please get in touch to find out more.

Louise Haines - Head of Consulting

[email protected]

+44 (0) 7798630382