Using our heads to solve your Reward challenges.
Amongst the array of responsibilities that Reward and HR professionals are required to deliver on, there is one hot potato which is often the unspoken determinant of success (or agony!) in any endeavour: access to good quality people data. From salary benchmarking and levelling, to analysing Reward risks and delivering an annual pay review, robust data is the foundation of success for any Reward team's deliverables, and should be the bedrock for most organisations and HR departments.
Troublesome Trio: Incomplete, Inaccurate, and Inconsistent
When HR data is incomplete, inaccurate, or inconsistent, Reward teams will face a raft of challenges when tackling key activities and deliverables. Salary benchmarking can be misrepresented, internal levelling and benefits could be misaligned, hierarchy structures could be unclear, and budget lines could lead to ambiguity and errors. Another key aspect is being able to clearly identify Reward risks within any people data; from gender pay gaps, to equal pay discrepancies, to breaches of National Minimum Wage regulations, without access to robust and clean data there are potential legal and reputational pitfalls.
It's a common theme that issues can stem from many HR systems not being tailored for people data and analytics; rather they're repurposed financial platforms. Consequently, discrepancies and time-wasting can arise when key data metrics, such as FTE salaries, departmental structures, or reporting lines, are stored inaccurately or inconsistently. This misalignment not only undermines the integrity of HR and Reward processes, but also hinders planning and clear decision-making moving forward.
The benefits of clean data
Accurate data 'rewards' and empowers HR and Reward professionals with actionable insights, enabling them to do their job efficiently and effectively without the pain (and eye-roll) that can sometimes be associated with data-driven tasks.
It's well-known that the annual pay and bonus award time is a period for Reward teams where deadlines are tight and resource is stretched. When you throw some inaccurate and unreliable data into the mix it can be a recipe for frustration, and time pressures soon build for Reward and wider HR.
However, with accurate data at their disposal (such as precise data records for salaries, contracted hours, current job role, promotions, movers, joiners and secondments), Reward teams can navigate these processes with confidence, mitigating the frustrations of battling bad data. Timely and precise information enables fair and equitable distribution of rewards, which ultimately leads to minimal 'noise' post pay review delivery and a happy workforce across the organisation.
Achieving and maintaining good data quality does however require time and effort. Implementing robust data governance frameworks and regular audits are essential steps in ensuring that data is kept as accurate as it can be. Automation tools can streamline data entry processes and reduce the likelihood of errors, while monthly or quarterly reviews help identify and rectify inconsistencies promptly. Developing a culture of data ownership across an organisation encourages employees to take the accuracy and completeness of data more serious.
Overall, the importance of 'clean' people data cannot be overstated. It serves as the foundation of effective Reward management, underpinning strategic decisions and ensuring regulatory compliance, whilst minimising risks. By addressing the challenges of data quality head-on and implementing robust governance practices, HR departments can unlock the full potential of their workforce and drive organisational success.
If you find yourself needing support to understand if your people data is open to any Reward risks, or you wish to know more about how Reward Governance can support your organisation, the Reward Heads team can help you. Please reach out to Victoria Milford, our CEO at rewardsolutions@rewardheads.co.uk.
Alternatively, we do offer Reward coaching modules, which are designed to help expand Reward knowledge within your organisation, we have some modules specially dedicated to Reward Governance including Gender Pay and National Minimum Wage - you can find more information on those here - Coaching.
Emma Chamberlain - Senior Consultant