Developing a salary structure

Some voluntary organisations may be new to the idea of a formal salary structure: small organisations tend to make do with an ad hoc system; larger organisations may take a more formal approach but could have systems in need of updating due to technological innovations, changing work duties, shifting responsibilities, or new kinds of staff.

If an organisation experiences pay disputes, employee complaints regarding fair remuneration, or difficulty in retaining staff, it may indicate that the time is right for a review of wage scales and pay structure.

Relative pay between individuals and groups of employees is vital for successful recruitment, retention and employee relations in all organisations.

Gathering information to develop/renew a salary structure

Once the basic legal requirements are taken into account, the process of developing a salary structure begins with gathering information. Some organisations may be able to hire a trained consultant already familiar with current salary levels and remuneration practices in the voluntary sector. Others will have to do this research themselves, appointing a salary structure committee responsible for looking internally and externally for answers.

The salary structure committee should be made up of individuals representing a cross-section of the workforce, management and trustees. This committee should begin its work by familiarising itself with the organisation's existing salary structure, taking stock of what workers are currently paid, what jobs they are doing, how they are assessed, recruited and dismissed.

Then it should gather information from a wider sphere. Some of the best guides to fair remuneration lie outside the organisation. To develop a realistic sense of current remuneration levels, the committee should familiarise itself with how workers are being rewarded throughout the voluntary sector. Some sources of information are:

Local and national salary surveys
Pay rates in similar organisations
Networks at which managers meet informally to exchange information on terms and conditions of employment
Recruitment pages of the local and national press (keeping in mind that these will give an idea of salaries being offered but will not reveal how much recruits are actually being paid)
Specialist publications related to the organisation
Local authority pay scales
The internet