Employers to get help setting up fair pay systems

1 September 2008

Businesses can get advice on establishing remuneration systems that will help them avoid costly equal pay claims.

Acas, the employment relations service, has published a guide on how best to ensure that employers pay their staff fairly using a job evaluation.

Job evaluation, which determines the relative importance of a number of different jobs while avoiding discrimination, can be a complex process.

But the new guide will help employers decide whether introducing a job evaluation structure is feasible and appropriate for their business.

Properly carried out, a job evaluation has a number of benefits for employers, said Acas. These include creating a fair and equitable pay system; helping with the introduction of new or changed jobs; providing a defense against tribunal claims on grounds of pay discrimination; and boosting recruitment and staff loyalty.

Acas’ annual report for 2008 shows a 25 per cent rise in employment tribunals and potential employment tribunal claims, an increase that has been in part attributed to equal pay claims.

Frank Blair, director of Acas Scotland, who developed the guide, said: “Employers sometimes find it hard to justify their grading and pay systems. Putting in place a job evaluation scheme can remedy this and can also help prevent equality and HR related problems from arising.”

Mr Blair added: “However, Acas is urging businesses to be fully prepared before embarking on introducing job evaluation. A good number of the difficulties encountered by organisations will be avoided by adequate preparation. The booklet gives advice on the level of preparation required, which if undertaken properly, will create strong business benefits.”

The new Job Evaluation advice booklet can be downloaded free at http://www.acas.org.uk/index.aspx?articleid=682