(Solution) CIPD 5HR03 how to develop organisational reward packages and approaches based on insight. (AC 2.3)


Benchmarking data can help Body Image to create an effective reward package for different job roles within the workplace. However, development a better reward package need to include key elements such as job evaluation, pay structure, correct levelling of jobs and ensuring fairness.

Job evaluation

The first step in developing a reward package is to determine the size and relative value of each job role. The purpose of job evaluation is to identify different jobs, rank them and determine which job would receive more rewards than the other (Koziol and Mikos, 2020). It is the responsibility of Body Image HR to carry out job evaluation and rank each job so that wage bands can be assigned to them. The size of the job correspond to a ranking, which then corresponds to wage rate and basic pay brackets or wage grids. In doing so, people professionals can ensure fair pay and equity in rewarding people with different skills and knowledge.

Grade and pay structure

The information obtained from the job evaluation is used to prepare grades and pay structures. Pay structures contains wage grades or bands that link related jobs within the hierarchy (Cotton, 2022). Having a pay structure can be a reference for people professionals when making reward policies and strategies. Pay structures can also be designed to ensure fairness, for instance, avoiding pay discrimination, aligning rewards with goals and objectives and ensuring clarity in managing pay rise.

Correct levelling of jobs

Correct job levelling ensures fairness and equality in the workplace. Job levelling seeks to define job responsibilities and duties, establish clear hierarchical levels and develop career paths (Indeed Editorial Team, 2022). With a clear job levelling, Body Image can be able to align positions with organisational culture, strategy and needs. It can also ensure equity and consistent in reward practices.

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