Reward

Contents
Our approach to reward
1
Reward strategy
1
Developing a reward strategy
3
Total reward
4
Some definitions
5
Job evaluation
Appendices
Appendix 1
Base salary comparison analysis
Appendix 2
What is the best way to select and use reward consultants?
Appendix 3
Collinson Grant's approach – in summary
Appendix 4
Share schemes
Appendix 5
Job evaluation scheme
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Our approach to reward
We have defined our approach to reward in the following statement:
Pressures on margins are relentless. The need to reduce costs is constant. No
business can afford to take its eyes off these fundamentals. For most
companies the costs of employing people are greater than for any other single
resource. Effective management demands that managers strive for optimum
performance at least cost.
Our approach to reward is based on this essential proposition. We focus on
making certain that strategies for the pay and benefits of all employees are
directed at adding value and are concentrated on the bottom line. This means
the design and implementation of robust systems for pay that aim to reduce
costs and achieve better returns from firms’ investment in people.
Some employees rightly command salaries above the norm. Excellent
contributions to the business deserve exceptional pay. A sophisticated reward
strategy accommodates such circumstances while retaining its purpose of
achieving value for money.
Margins not volumes should be the focus of directors and managers. This
underpins our work on reward. All initiatives on pay and employment benefits
should target costs.
We support managers:
to continuously strive for cost reduction
to institutionalise a philosophy of improved productivity
to recover the costs of pay increases as a matter of routine
to measure progress continuously and openly
to ensure margins are improved through more cost-effective
utilisation of people.
As a minimum, holding costs is an imperative in any change to systems for
reward. In our experience, pay systems should be simple and easily
understood, provide clear targets and encourage ingenuity and enterprise. We
have found that success results from:
concentrating on a small number of improvement goals
stretching targets
powerful incentives for excellent performance.
Reward strategy
Reward strategy is not a huge, complex, masterplan for the next ten years. It
is regular checking that reward practices are connected to what the
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organisation is trying to achieve.
‘reward strategy’.
Few clients actually articulate this as
The following is a quote from CIPD:
‘HR people often focus on best practice, relying on benchmarking, in the
absence of any (genuine) strategic direction. But it is not enough to do what
many other successful organisations are doing. Each organisation must
develop a reward strategy that is right for them.’
The reward strategy is the way the organisation operates a pay and benefits
system that gets employees to pursue the organisation’s objectives. For
example, commission schemes apply to sales staff because it is believed this
will make them sell.
Theoretically, the reward strategy:
is derived from and supports the business strategy
generates improvements in business performance by directing
employees’ effort towards organisational goals
brings about and reinforces cultural and behavioural change
is integrated with the rest of HR policy and practice
keeps pay and other employment costs under control.
While it is rare to find this happening, we should encourage clients to think
about the subject and advise them to:
understand the long-term goals, performance objectives and measures
of the organisation
consider what the organisation needs to be good at to succeed
consider what behaviour they want to encourage to achieve this, and
how ‘reward’ can help. If they want to encourage team working, do
not reward individual contribution exclusively
decide how the success of the reward strategy is measured - better
performance; better recruitment; better retention; better employee
development, for example
understand what the business strategy is so that the reward strategy
can have a connection to it
avoid complexity
take time over changing reward systems. A rush to complete (by the
pay review date, say) will probably make matters worse as a result of
poor communications or pay modelling, for example
concentrate on improving the performance of the middle 80% of
employees, not the worst and best 10%
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get buy-in of directors and senior managers
be realistic about the ability of line managers to deliver on
performance management (appraisal and pay decisions). If they are
not trained, or the system is over-complicated, it will fail.
Developing a reward strategy
The flow- chart below shows a process for developing a reward strategy. It is
rather elaborate, but is useful for reference as it includes all the key issues.
Purpose
Phase 1
Diagnosis of current situation, setting the future direction and principles,
development of the future reward architecture
Outputs
Full understanding of current situation
Identification of key reward issues
Future reward strategy definition and components
Defined ‘employment’ deal
Prioritisation of schemes and changes
Formalising and communicating the plan
Buy-in and support of relevant interest groups
Typical
stages
Planning
Formation of project teams
Interviews and group discussions
Market analysis
Internal data review
Workshops
Purpose
Outputs
Typical stages
Phase 2
Detailed design of the components of the future reward strategy
Detailed scheme designs
pay structures and levels
base pay reviews
incentive and bonus plans
share schemes
benefits
Schemes initially modelled and tested
Preparation plan
Senior management approval
Design team meetings
Drafting of scheme designs
Testing of new schemes on sample of jobs
Further consultation
Staff updates and briefings
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Purpose
Outputs
Typical stages
Purpose
Outputs
Typical stages
Phase 3
Preparation and testing, building the capability to deliver
Agreed finalised changes / schemes
Fully tested and costed reward schemes
Trained managers and staff with a clear understanding of the
strategy and changes
Defined implementation and operating responsibilities
Phased implementation plan
Branded reward strategy with clear themes and components
Further testing of designs, for example, pilots
Analysis of transition from status quo
Detailed modelling and costing
Development and delivery of communications and training support
Trade union negotiation
Design of operating, administrative and control procedures
Phase 4
Implementation and on-going review and adjustment
Detailed communication plan
Effectively implemented reward schemes
Effectively implemented reward processes
Operation of review mechanisms and modifications as required
Further development of managerial skills and staff understanding
Full and possibly phased implementation
Regular audits of effectiveness
Design of any modifications to schemes
Source: Brown D, (2001) Reward Strategies. CIPD
Total reward
Most commentators these days regard ‘reward’ as more than just pay - it is all
the other benefits that an employee gets from employment, and is sometimes
referred to as ‘total reward’. The table shows the different components
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Pay
Benefits
Base pay
Bonuses
Long-term incentives
Shares
Profit sharing
Learning and development
Training
On-the-job learning
Performance management
Career development
Succession planning
Pensions
Holidays
Perks
Flexibility
Work environment
Organisation culture
Leadership
Communications
Involvement
Work-life balance
Non-financial recognition
Although we are capable of delivering work on all these, when people talk
about reward, they almost certainly mean pay.
Appendix 2 is a quote from E-Reward about the process a client should go
through before selecting a consultant. Appendix 3 is Collinson Grant's
approach in summary.
Some definitions
Broadbands/broadbanding
Broadbands are a design of pay structure that (usually) has fewer grades than
traditional structures, has wider salary bands/ranges, a large overlap between
bands, and does not use midpoints to determine the ‘fully acceptable’ salary.
Within a broadband pay range, pay zones may be established that determine
the minimum and maximum salary. The maximum can only be exceeded if the
employee is given new responsibilities or acquires specified skills, for example.
This builds in a ‘bar’ to the pay range.
Broadbands can be useful in situations where there is little scope for
promotion, but increased expertise is valued. ‘Techies’ in IT, for example, are
often poor supervisors: broadbands provide pay progression without the need
for promotion to a supervisory job.
However, broadbands make pay management more difficult and tend to lead
to pay inflation. With less visible mechanisms to restrict pay advancement
than traditional systems, it can be difficult to communicate and justify pay
decisions.
Benchmark jobs
Benchmark jobs are a collection of jobs that produce a representative sample
of jobs for evaluation. They should:
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cover the range of work and include jobs with a large number of job
holders
include standard jobs that exist externally, to assist pay comparison
be stable jobs that are well-established and understood
exclude one-off jobs.
They represent the backbone of a job evaluated pay structure.
Benchmarking salaries
Assessing a client’s salaries against the market. Usually, this is done by
referring to published salary surveys (Inbucon/IDS/Reward).
A more reliable way is to survey particular employers in the area or sector, by
asking them to send information about pay and benefits in return for a copy of
our report. (Appendix 1 sets out an approach).
Competence based pay
Pay increases according to the employee’s acquisition of additional skills or
competence. Typical ‘levels’ of competence are:
entry level
developing level
fully competent
advanced.
Advantages
Can reinforce culture of employees being responsible for own
development.
Encourages acquisition of new skills.
Focuses on skills the organisation wants to encourage.
Disadvantages
The pay increase arising from the increased competence needs to be
sufficient to make it worthwhile.
The employer may not want everybody in a particular job/role to have
all the competencies.
There is a high management /administration requirement.
It may be applicable to some categories of employee, but not all.
Competence acquisition may be better linked to performance development, but
not pay.
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Contribution pay
Contribution pay takes Performance Related Pay a step further, by combining
performance and competence to measure and reward not only performance but
also the increasing skills and capabilities of the employee.
Flexible benefits
Flexible benefits (flex) allow employees to choose the benefit, or level of
benefit, that suits them. It allows, within certain constraints, the employee to
decide the mix of cash and benefits.
Advantages
Reinforces value/cost of benefits to employees.
Reduces status barriers.
May appeal to diverse workforce.
Empowers/engages employees to make choices rather than rely on
employers’ decision about benefits.
Costs can be reduced through reduced national insurance.
Recruitment (and retention) may be improved by more attractive
employment offer.
May assist harmonisation of employment terms: all the same and all
different.
Flex schemes normally involve the concept of salary sacrifice. The employee
gives up an amount of salary in return for non-cash benefits. Usually, the
employee has the opportunity to change the package annually.
There are two approaches:
A value is attributed to each benefit that may be flexed. Employees
can spend the cash or points on the benefits available, or take more in
cash,
or
A fund, or allowance, is provided, to be spent on benefits, typically a
percentage of salary, or a fixed amount by grade.
Gainsharing
Bonus based on self-funding pay-outs. Employees share in the financial
success of over-achievement once pre-agreed targets have been reached.
Grade drift
Grade drift occurs when, over time, jobs are placed in a higher grade than
they started in, usually because it has been argued the job has become more
difficult/responsible.
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Incentives
Usually, a generic term for a payment that recognises a particular level of
measured contribution.
Job families
Job families are an approach to relating different roles across an organisation
in an integrated way. Job families might be: accounts/production/sales/IT, for
example.
Job families cluster jobs of a similar type and market base rate together.
Within the job family there is a hierarchy of roles: Analyst level 1/Analyst
level 2, and so on, say.
An example of market zoning at
an insurance company
26,000
21,000
18,000
£
20,000
16,000
13,000
15,000
13,000
9,000
10,000
8,000
1
2
3
6,000
2
1
3
A
B
In the diagram, three different pay ranges can be applied to jobs in the same
grade. For example:
B1 are customer service
B2 are Finance
B3 are IT.
Advantages
Reflect different pay markets for jobs of similar size.
Reflect different career structures of different functions.
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Useful in organisations with a high number of knowledge workers.
Can accommodate a wide variety of functions and jobs.
Disadvantages
Can be complex to administer and communicate.
Relies on getting reliable pay data.
Can create barriers to lateral moves in the business.
Job grading
Advantages
Clarity.
Internal equity.
Control over pay levels.
Rational.
If based on analytical job evaluation, defensible in equal pay claims.
Disadvantages
Inflexible.
Does not respond to skill shortages.
Grade drift is inevitable.
Classic pay grading structure
--
35
--
30
--
25
Money
40
--
20
--
15
--
10
--
5
--
Pay range
80 to 120%
Midpoints
Grade width 18%
0
100
200
300
400
500
600
700
Job size
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Pay/salary range
The distance between the minimum and maximum salary for a job or job
grade.
Pay spine
Historically, the basis for most public sector pay structures. A pay spine is a
series of often many incremental steps extending from the lowest to the
highest paid jobs in the structure that may cover the whole organisation. Pay
scales are superimposed on the spine to determine the minimum and maximum
for the job, with usually automatic increments annually applied until the
employee reaches the top of the range for the job/grade.
Pay and grading structures
Spine points
Butt jointed grades
Overlapping grades
Pay market
The salaries paid by employers for a particular job.
What market comparator is best? Is it the local market for factory workers,
say, but the national market for managers?
Performance-related pay (PRP)
Judgements are made about an individual’s performance, usually by the
manager, but sometimes with contributions from peers and subordinates.
Based on this performance, the employee is given a pay increase.
Advantages
Emphasises that performance in line with company objectives is
important to the organisation.
Allows employees to feel the link between their performance and their
pay.
Can act as a channel of communication of company objectives.
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Disadvantages
Difficult to set and measure employees’ objectives.
Inconsistency of managers’ assessments of performance creates
dissatisfaction/scheme disrepute.
Tendency to regard all employees as at least ‘satisfactory’.
Deming (ancient guru) thought this encouraged short-term
performance, prevented long term planning, built fear, prevented
teamwork, fostered rivalry and made people bitter.
Role
Often used interchangeably with ‘job’.
description/definition.
So are job description and role
‘A role may be a set of discrete jobs that are described with some generic
responsibilities but with clearly defined skill sets. For example, a role may be
a musician but a job, amongst several within a role, would be second violinist’.
Share schemes
See Appendix 4.
Team-based pay
A bonus is paid according to the performance of a group of employees, rather
than being based on individual performance. The same cash, or percentage of
salary, is paid to each person in the group.
Advantages
Whole team shares in success.
Supports teamwork.
Emphasises collaboration.
Rewards supportive behaviour.
Disadvantages
Requires clear, stable work groups.
Less effective members get equal benefit.
Peer pressure can be oppressive.
High performers may be frustrated.
Variable pay
Pay that is ‘at risk’, such as bonuses and incentives
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Paying an amount of pay in addition to or instead of base pay as part of an
employee’s total remuneration which varies according to criteria, such as:
commission or other sales incentives
performance bonus
company-wide bonus
profit sharing
gainsharing.
Job evaluation
The objective of job evaluation is to establish a transparent grading framework
with a clear route for pay progression. It:
measures the job not the person doing it
does not measure the volume of work
does not measure individuals’ performance.
Why introduce it?
To ensure that jobs are graded fairly and to achieve equal pay for
work of equal value.
To underpin new pay and grading structures and assure internal
equity in the system.
To assist harmonisation of terms and conditions following merger or
acquisition.
To clarify job profiles and ensure relevant comparisons when
benchmarking externally.
Analytical schemes break down a job its key constituent parts, such as skill,
experience, effort (factors). Each factor is given a weight depending on its
importance. They offer rigour, consistency and objectivity. They are not
scientific, requiring judgements to be made in deciding which level of
education is required, for example.
Non-analytical job evaluation, each job is examined in its entirety. It is
quicker than analytical schemes, but we would only recommend it as
management tool. It would be unlikely to be acceptable to employees and is
not acceptable in assessing equal pay for work of equal value.
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Job evaluation project - roles and responsibilities
Group
Responsibility
Steering group
Manages high level policy and direction of the project. Does not second-guess the
actual results of the exercise. Led by a senior manager who is responsible for the
project at the highest level
Project manager
Responsible for the day-to-day conduct and implementation of the project
Working group
The forum that makes decisions about the various stages of the project. May include
employee representatives. If large, may need to delegate tasks to project teams
Project teams
Deliver elements of the project
Job holders/line managers
Provide information about the job to enable job descriptions to be prepared and
agreed. May give ‘evidence’ to job evaluation panel
Job evaluation panel
The body that evaluates the jobs. May be the Working Group
Appeal body
The body that hears appeals against an evaluation. It should be separate from the
job evaluation panel
Collinson Grant
Offer technical advice on methodology and process/assist with job descriptions/chair
or adviser to job evaluation panel
Project process
Planning.
Communication.
Selection of factors to value jobs (or use existing/proprietary scheme).
Initial design of factor levels and points values/weights.
Selection of benchmark jobs.
Job description design.
Job information collection.
Test scheme (using benchmark jobs?).
Amend/refine scheme if necessary.
Train evaluators.
Evaluate benchmark jobs.
Evaluate remaining jobs.
Confirm evaluations.
Publish evaluations (with/without points?).
Hear appeals.
Develop pay structure.
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Points rating job evaluation
This method breaks a job down into several factors that are scored against a
numerical scale. The sum of the factor scores gives the total job size.
It is the most common form of job evaluation. It:
is analytical
can be specific to the organisation
examines each job in the same way
provides relative scale
is not ‘scientific’.
Example
Levels
Factor
1
2
3
4
5
6
1
Knowledge and skills
50
100
150
200
250
300
Weight
%
26.8
2
Responsibility
50
100
150
200
250
300
26.8
3
Decision making
40
80
120
140
180
220
19.6
4
Complexity
25
50
75
100
125
150
13.4
5
Contacts
25
50
75
100
125
150
13.4
Design
Factors should:
cover all the significant features of the job population
avoid double counting, omission or combining features
be a manageable number
not be sex-biased (giving a lot of points to ‘heavy lifting’, for
example).
According to E-Reward, the most commonly used factor groupings are:
knowledge, skills, expertise and experience
communication, contacts and interpersonal skills
decision-making, problem solving and complexity
impact and accountability
people management, leadership and team working
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various types of responsibility, demands and attributes
environment and work demands
freedom to act/discretion
responsibility for financial and other resources
innovation and thinking
planning.
Whilst visually appealing, forcing the same number of levels for each factor is
not recommended. Some factors have a greater range to be measured.
Collinson Grant job evaluation scheme
It is an analytical scheme for evaluating all administrative and managerial
jobs. It is not suitable for manual jobs. It is at Appendix 5.
Hybrid job evaluated/competency schemes
Fewer, broader role profiles.
Simpler evaluation schemes.
Broader pay bands.
Looser performance management schemes, with equal emphasis on
the reward and development aspects.
Pay progression based on personal contribution - that is, a
combination of competence displayed and results achieved.
Flexible working hours and arrangements.
Personal choice of benefits.
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Base salary comparison analysis
Our client employed a group of specialist technicians. It wanted to know where its pay stood in relation to
the market and compared to their skills and competencies. The company had job descriptions and
information on those employers that competed with them for technical employees.
We:
reviewed the job descriptions and organisational charts to understand the responsibilities of each job
and its position in the organisation
identified those jobs that could be market-priced using available market surveys and which jobs
would require a specialised survey
designed a specialised survey to obtain information for industry-specific jobs
invited appropriate organisations to participate in the survey and offered complimentary copies of
the results for participating
market-priced as many jobs as possible and slotted the remaining few jobs into market based salary
guidelines
plotted the salaries paid by the client against the salary guidelines
asked managers to determine the skill and competency level for each employee
plotted the skill and competency levels against the salary guidelines
where skill and competency levels did not match the salary position in the guidelines, made
individual salary adjustment plans to move employees to the appropriate position
developed communication tools for managers’ use when introducing the plans to employees.
Appendix 1

Collinson Grant
Reward
What is the best way to select and use reward consultants?
Ensure that there is a business case for using consultants
Specify the objectives and ‘deliverables’ of the assignment in a way that clearly indicates that the
desired results are worthwhile and achievable and will meet the business need
Source and select the consultants with great care. Always consider alternatives even if you already
have someone in mind. Approach reputable firms and individuals
Obtain a proposal from the consultant that sets out:
Their understanding of the assignment
Their experience of similar projects
How they would tackle it
Who would do it, with details of relevant experience
How long the project would take
How much it would cost
Check the proposal and compare it with others against the following criteria:
Understanding of the aim of the project
Grasp of the issues
Relevance and realism of their proposals
The thoroughness with which the proposal has been researched and prepared
The reputation and relevance of the experience of the firm
The strength of the team in terms of qualifications and relevant experience
The ability of the consultants involved to fit the culture and management style of the
organisation: do we think we can work well with them? Will they work well with us?
The timescale - will they deliver the programme when required?
The costs - a consideration but not the only one
Always meet and approve the actual consultants who will carry out the job
Plan the project meticulously with the consultants. Agree terms of reference, deadlines,
deliverables, methods of monitoring and reviewing projects and reporting arrangements
Manage the project. You are purchasing someone else’s services: it is up to you to ensure they
deliver
The best consultancy projects are those in which the client and the consultant work in partnership
Remember that all consultancy projects involve change.
Take particular care over the
implementation, involvement and communication processes during and after the assignment.
Source: E-Reward
Appendix 2

Collinson Grant
Reward
Collinson Grant's approach – in summary
How we can help you with reward?
We do a lot of work on reward
We expect there to be clearly defined benefits from it, otherwise it’s not worth doing
Pay/incentives/benefits/ performance development
We have about ten consultants who work on it
We’ve just finished a very interesting job reviving an ageing pay structure in [sector of your choice]
We usually find the unions are supportive if they understand what you’re trying to achieve [optional]
Fundamentally it is about pay
Developed pay structures of all sorts in virtually every sector
We find Reward is subject to fashion: single-status/broad-banding/competencies/job families - but simple
grade structures are usually the basis
We do a lot of job evaluation work
Collinson Grant job evaluation scheme used in dozens of clients
Develop tailor-made schemes where appropriate
We find clients often identify a particular problem and think a quick fix will solve it
Need to look at the broader, strategic, picture - what you want to achieve with pay and benefits
It is not sensible to look at pay and reward in a vacuum
We have never believed there is a ‘one size fits all’ answer to reward issues
We try to ensure improved productivity is the result: not necessarily job reductions, but better training,
improved performance and reduced staff turnover also contribute
Appendix 3

Collinson Grant
Reward
Share schemes
This section is to set the principal types of share scheme. A variety of rules apply to them. The principal
types of share plan are:
Inland Revenue approved plans
Company share option plan (CSOP).
Share incentive plan (SIP).
Sharesave plan (SAYE).
Enterprise management incentive (EMI).
Non-Inland Revenue approved schemes
Discretionary share option plan (DSOP).
Performance share plan.
Phantom share plans/cash settled stock appreciation rights (SARS).
Equity settled SARS.
Deferred bonuses.
Inland Revenue approval is obtained from its Employee Shares and Securities Unit.
Company share option plan
The employer can select the recipients.
The employer can attach pre-determined performance conditions to the option award.
The value of each employee’s shares under option must not exceed £30,000, but this does not
include options that have already been exercised.
No income tax or national insurance liability arises at grant of option or on exercise unless it is
within three years of grant.
Share incentive plan
Provides employees with the opportunity to buy shares out of gross income and to receive awards of
shares on a tax-free basis.
Employers can choose which aspects of the plan to operate, but the plan must operate on an allemployee basis.
Maximum tax benefits arise if the shares are held in the SIP for five years from the award.
Four types of share:
Free shares - employees can be allocated shares at no charge
Partnership shares - employees can purchase shares from gross income
Matching shares - employers give shares to match each Partnership share
Dividend shares - employees can use dividend payments to purchase additional equity.
Sharesave plans (Save as you earn)
Objective is to encourage wider share ownership in a tax-efficient manner.
All employees are offered share options on ‘similar terms’.
Stipulated exercise price can be at a discount of up to 20% of the market value at the time of grant.
Appendix 4
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Employees fund the exercise price by entering into a savings contract. Employees can save between
£5 and £250 per month and the interest accumulated is a tax-free bonus.
Enterprise management incentives
Offer more flexibility than CSOPs.
Share options are granted to employees on a discretionary basis.
Exercise of options can be made conditional upon the fulfilment of pre-determined performance
targets.
An employee may hold EMI options worth up to £100,000.
EMI only available to companies of no more than £30 million gross assets and many sectors are
excluded from participation.
Discretionary share option plans
Not Inland Revenue approved and so does not enjoy favourable tax treatment.
Probably the most common form of non-approved plan.
Share option awards made to selected employees on a discretionary basis.
Company is able to determine the option exercise price.
Exercise of options can be made subject to the achievement of pre-determined performance
conditions.
Performance share plans
Also known as long-term incentive or restricted share plans
Number of shares awarded to participants is usually dependent on company performance.
Participants typically given right to receive shares at nil or nominal cost.
A typical PSP would measure performance over three to five years.
Phantom plans/Cash settled share appreciation rights (SARS)
Discretionary schemes that pay a cash award related to the increase in share price.
Used where conventional share options may not be appropriate, such as for overseas executives.
A notional option award is granted to selected employees.
Equity settled SARS
Allow the exercise of an option to be satisfied by delivering shares with a market value equivalent to
the gain on the exercised option.
An option award is granted to selected employees.
The award gives the employee the right to exercise the options granted, after a vesting period.
Deferred bonuses
The participants are paid part or all of bonus in shares to be held for a significant period.
Often the award of further shares is made at the end of the holding period, subject to performance
conditions.
Appendix 4
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Collinson Grant
Reward
Job evaluation scheme
Experience
1
Communication skills
3
4
5
6
7
Short work
experience
Knowledge
2
Over 6 months’ work
experience, plus
understanding of
related activities
Over 12 months’
experience of
commercial,
administrative or
technical tasks, plus
broad knowledge of
related activities
Considerable
experience of
commercial,
administrative or
technical tasks
Extensive experience
of a specialist
function or of several
functions generally
related in nature and
objectives
Broad experience of
business practice or
of several functions
diverse in nature and
objectives
Extensive
experience of the
widest spectrum of
business activity
ii
iii
i
ii
iii
i
ii
iii
i
ii
iii
i
ii
iii
i
29
32
35
38
41
44
47
51
55
59
63
68
73
78
85
32
A Secondary education and general work training
i
ii
iii
35
38
41
44
47
51
55
59
63
68
73
78
85
92
i
ii
iii
92
99
107
118
123
134
99
107
118
123
134
145
35
41
44
47
51
55
59
63
68
73
78
85
92
99
107
118
123
134
145
154
41
44
47
51
55
59
63
68
73
78
85
92
99
107
118
123
134
145
154
167
41
44
47
51
55
59
63
68
73
78
85
92
99
107
118
123
134
145
154
167
180
44
47
51
55
59
63
68
73
78
85
92
99
107
118
123
134
145
154
167
180
193
47
51
55
59
63
68
73
78
85
92
99
107
118
123
134
145
154
167
180
193
209
51
55
59
63
68
73
78
85
92
99
107
118
123
134
145
154
167
180
193
209
225
55
59
63
68
73
78
85
92
99
107
118
123
134
145
154
167
180
193
209
225
241
D Knowledge of commercial, administrative or technical
subjects.
May require a part-professional
qualification
59
63
68
73
78
85
92
99
107
118
123
134
145
154
167
180
193
209
225
241
261
63
68
73
78
85
92
99
107
118
123
134
145
154
167
180
193
209
225
241
261
281
68
73
78
85
92
99
107
118
123
134
145
154
167
180
193
209
225
241
261
281
301
E Professional or technical proficiency normally gained
through study for a professional qualification
73
78
85
92
99
107
118
123
134
145
154
167
180
193
209
225
241
261
281
301
326
78
85
92
99
107
118
123
134
145
154
167
180
193
209
225
241
261
281
301
326
351
85
E
38
38
92
99
107
118
123
134
145
154
167
180
193
209
225
241
261
281
301
326
351
376
B Probably to GCSE level and training in basic
procedures or equipment such as a PC
d
u
c
a
t
i
o
C Knowledge normally gained through further education
or apprenticeship
F
Proficiency in an advanced or highly-specialised field
G Requires mastery of principles, practices and theories, or
expertise in several specialised fields, probably gained
through special development
99
107
118
123
134
145
154
167
180
193
209
225
241
261
281
301
326
351
376
407
107
118
123
134
145
154
167
180
193
209
225
241
261
281
301
326
351
376
407
438
107
n
92
99
118
123
134
145
154
167
180
193
209
225
241
261
281
301
326
351
376
407
438
469
118
123
134
145
154
167
180
193
209
225
241
261
281
301
326
351
376
407
438
469
509
123
134
145
154
167
180
193
209
225
241
261
281
301
326
351
376
407
438
469
509
549
134
145
154
167
180
193
209
225
241
261
281
301
326
351
376
407
438
469
509
549
589
Communications skills: the extent to which achievement of objectives is dependent upon ‘influencing’ others, within or outside the company, over whom the job-holder has no direct authority
i
Ordinary courtesy and effectiveness in dealing with others
ii Important, but not essential, to the achievement of objectives
iii Critical to the achievement of objectives
Appendix 5
Page 1 of 4

Collinson Grant
Reward
Scope
1
2
3
4
5
6
1 or 2 people
Up to 10 people
Up to 25 people
Up to 100 people
Up to 250 people
Over 250 people
10
14
18
24
Work of Others
A
Part-time, immediate supervision while doing the same
work as the supervised for most of the time
4
7
5
8
6
B
D
e
C
g
Immediate supervision where most of the time is spent
assigning, reviewing, checking work and eliminating
ordinary difficulties
Supervision of a group
accountability for results
of
employees,
without
7
9
10
8
14
9
10
14
D
e
Management of a group of employees, with accountability
for results
14
15
20
E
Direction and co-ordination of several departments or
functions through subordinate supervision
18
24
20
26
Integration of several functions through managers who, in
turn, are responsible for individual departments
24
26
28
36
51
64
55
59
51
44
55
59
44
47
41
51
44
41
38
33
41
47
36
44
47
36
33
41
36
33
38
28
30
33
38
28
30
22
F
26
36
38
28
30
22
33
28
26
24
30
30
22
28
26
22
20
18
24
24
16
26
22
20
18
16
e
18
16
15
20
16
15
12
11
15
12
11
12
r
11
64
55
69
74
80
69
86
Appendix 5
Page 2 of 4

Collinson Grant
Reward
Guidance received
1
C o m pl e x i t y
A
N
a
t
u
r
O
f
D
u
t
i
e
s
Use of a few well-defined procedures and limited
judgement, since the work involves little choice of method
2
3
4
5
6
Immediate
supervision with
short work
assignments
General supervision
where standard
practice enables
job-holder to
proceed alone on
routine work
A definite objective
is set and job-holder
plans and arranges
own work
General direction
only, where jobholder works from
policies and general
objectives
Job-holder plays a
major part in
setting own
objectives, methods
and standards of
performance
Under board
control and
direction
7
16
10
25
19
13
B
C
D
E
F
Duties demand following a range of clearly defined
procedures and taking minor decisions under standard
practice or instruction
16
Duties demand following diversified procedures and
taking decisions in accordance with standard practice or
instruction
25
Substantially diversified procedures and precedents
require job-holder to devise new methods and modify
established practices
37
Working with defined policies and principles, making
decisions based on conclusions for which there are few
precedents
52
Working within broad
functional goals
70
policies and principles to
22
25
19
33
29
29
47
58
148
136
175
223
190
205
175
148
190
205
148
160
136
114
175
160
114
124
104
86
114
104
148
160
136
124
86
94
124
86
78
136
114
104
94
64
104
94
64
70
114
124
86
78
104
86
78
70
58
78
94
64
86
94
64
58
52
42
58
70
47
78
64
70
47
42
33
47
42
52
70
58
52
33
37
52
42
37
22
78
37
29
223
190
241
259
280
241
301
Appendix 5
Page 3 of 4

Collinson Grant
Reward
Results of errors
1
Accountability
A
Easily and quickly detected
2
3
4
5
6
Minor confusion or
expense in
correction
Generally confined
to a single
department.
Correction may
involve re-working
by others
May have
appreciable effect
on departmental
performance
May mean
significant
expenditure or
losses
May involve major
expenditure and/or
losses
May be critical to
the company’s
success
10
28
16
49
35
22
B
Usually detected in succeeding operations
28
42
49
35
E
r
Detected usually in reviews of progress
57
o
D
Detected only in reviews of results
73
81
106
E
Detected only after decisions have been implemented
97
s
124
106
134
Rarely detected before consequences are irretrievable
124
144
178
254
317
273
294
254
220
273
294
220
235
205
254
220
205
190
166
205
235
178
220
235
178
166
205
178
166
190
144
154
134
166
190
144
154
115
F
134
178
190
144
154
115
166
144
134
124
89
134
154
115
144
154
115
106
97
r
106
124
89
134
115
124
89
81
65
89
81
97
124
106
97
65
73
r
65
57
49
97
81
73
42
C
73
57
366
317
273
340
396
340
426
Appendix 5
Page 4 of 4

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