Solution

Organisations within reward management must consider outside business factors because environmental changes affect their performance effectiveness and responsiveness. PESTLE analysis shows fundamental impacting macro factors in reward decisions that originate from political, economic, social, technical, legal and environmental environments (CIPD 2023). Three principal aspects of PESTLE analysis influence Eco-Insulate’s reward system through legal and economic and social factors.

Legal factors

According to contemporary UK equality law embodied by the UK Equality Act 2010 it is mandatory for organisations to provide equal compensation to employees occupying equal positions regardless of their gender or racial background (ACAS, 2024). The company prevents pay bias based on gender ethnic or disability through regular audits to ensure fair compensation practises at Eco-Insulate. Eco-Insulate analyses starting pay rates and salary progression and benefit entitlements as part of its analysis to verify identical treatment for all its employees across personal demographics. The failure to comply with legal requirements results in expensive tribunal claims along with negative effects on the business reputation as an equal opportunities employer. The form and execution of remuneration packages at Eco-Insulate depend on how carefully the company evaluates its equality policies according to regulatory requirements.

Economic factors The company needs to be able to adjust its operations because economic conditions can transform how customers need the services Eco-Insulate provides. You should establish reward strategies that help employees develop necessary skills alongside providing them opportunities to reduce their worktime or apply short-time……..

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