GENERALLY ON THE PAYMENT SYSTEM STRUCTURE

Generally on the payment system structure:

Dynamic economic circumstances dictate some remodelling of the organization of business, systemization of work positions and in many cases also restructuring of the payment systems structure. A well-regulated systemization of work and a suitable payment systems structure affect the successfulness of business, the well-being of people at work and their work efficiency in an important way. We know that a company with a suitable wage structure increases the efficiency of the work of employees which, when management by objectives and the monitoring of work is established, affects business efficiency in a positive way.

The advising is directed to the following areas:

• explaining the concept of a payment systems structure (dilemmas and answers),

• the concept of salary politics (dilemmas and answers),

• arranging the systems of salary structures in companies from the viewpoints of the employers and employees,

• defining objectives that the salary structure must support,

• providing various methodological starting-points for the preparation of a salary structure system,

• rewarding the efficiency of individuals and groups,

• creating employment contracts (chapter on salary)

• ensuring cooperation with the workers representation board and with unions at the remodelling of the salary structure of a company,

• establishing the influence of modernizations of the salary structure system on work efficiency and successfulness,

• prepairing the collective agreement.

WORK EVALUATION

Work evaluation is - in accordance with the Employment Relationship Act - one of the initial phases in the creation of a modernized payment systems structure. On the basis of a surveyable systemization of work with a suitable method (adapted to the needs of the company) we define the demands for performing specific work and responsibility in the work position. This is the basis for the creation of a system of work evaluation, which is carried out for all job positions, which are determined by collective agreements.

The advising is directed to the following areas:

• defining the requirements for the qualifications of an employee (knowledge, skills, experience),

• defining responsibility at work (responsibility for leadership and professional development of employees, for achieving objectives, for incomes, for regulating expenses, for the quality of processes and products, for the development of new products or services, responsibility in the area of protecting the health of people at work, responsibility for the influence on the market position and influence on business),

• defining the efforts that are prerequisites for a certain type of work,

• defining unfavourable influences of the environment at work (in accordance with the estimation of risk or statement on the safety of employees at work)

• independent implementation of work evaluation on the basis of previously made and adapted method,

• adjusting the results of work evaluation (employer, workers representation board, unions).

REWARDING WORK EFFICIENCY

Rewarding work efficiency is one of the more important areas of work structure systems, which is lately gaining in importance also in Slovene organizations. It is about the business efficiency of the whole organization, efficiency of the work of organizational units and the efficiency at achieving objectives of an individual as well as defining other types of material rewards of employees at work.

The advising is directed to the following areas:

• providing a horizontal promotion of employees in the work position (criteria, model, linkage with the business plan),

• providing a vertical promotion of employees to a more demanding work position (criteria, model, linkage with the business plan),

• creating forms – fulfilment of conditions for promotions in the work position,

• defining possible dynamics of the promotion of employees,

• creating forms for determining personal efficiency at work,

• creating the criteria for determining groups successfulness at work,

• creating the forms for determining the efficiency of groups,

• creating the criteria for determining business efficiency,

• creating the forms for determining business success.

THE CREATION OF THE TARIFF PART OF THE COLLECTIVE AGREEMENT

The creation of the tariff part of the collective agreement represents the output of the payment systems structure that is supposed to be the result of a balanced partnership between work and capital. Wages are one of »external financial stimulation« that affect (self) motivation of people at work. This being said, we must not overlook the very important influence of "inner stimulation" that affect the motivation for work of an employee (task, role, mission, loyalty). With a settled salary structure the leadership of the company and the representatives of employees can actively influence the improvement of the organization climate and the achievement of the most demanding business objectives.

The advising is directed to the following areas:

• defining a wider model of partnership between work and capital,

• defining the principles of the »WIN-WIN« philosophy,

• analysing the acquired rights and lost rights,

• defining extra duties and extra rights,

• introduction formal and informal stimulations,

• implementing the politics of  true fulfilment of rights and the duties of the employer and the employees,

• creating the plan of provisions for the tariff part of company collective agreements,

• creating of a regulatory act concerning the promotions of employees,

• rewarding efficiency for project work,

• establishing wage policy and the role of leaders,

• providing operative execution of financial stimulation of employees for above-average work effects.

ANALYSIS AND BENCHMARKING OF WAGES         

Analysis and benchmarking of wages represents an additional possibility for prognosing a wage policy of a company. The partnership between work and capital demands benchmarking with the competitive business environment in the area of salaries as well. Analysis and benchmarking of  salaries in the local and wider regional area help companies make appropriate business decisions while balancing salaries with business results of a company.

The advising is directed to the following areas:

• defining comparable companies for benchmarking analysis and the analysis of salaries (listed comparisons without the names of the companies),

• defining comparable work positions,

• defining enlistment of data for the execution of benchmarking,

• defining data form for the carrying out of benchmarking,

• analysing results of benchmarking bearing in mind the local and wider regional conditions,

• prognosing wage policy on the basis of the results of the analysis and the benchmarking of salaries.