High Pay Centre and CIPD research offers practical guidance to HR leaders and board members on how to improve their people and pay governance through RemCo reform and the inclusion of the workforce in the pay-setting process.
In 2019, the High Pay Centre (HPC) and the CIPD published a report arguing that companies should improve their people and pay governance through RemCo reform and the inclusion of the workforce in the pay-setting process.
Building on this, HPC and the CIPD have now published new research offering practical guidance to HR leaders and board members on how to achieve this. This guidance is based on existing examples of good practice, and is drawn from a series of interviews with HR and reward leaders.
The recommendations set out ways in which employers can:
- Formalise people and culture matters as a board-level issue. This should include expanding the remit of the RemCo to include review of workforce pay, people matters and culture, rather than solely focusing on executive pay.
- Measure company performance in respect of social and environmental outcomes as well as financial metrics.
- Undertake meaningful engagement with the workforce, with substantive worker involvement in the pay-setting process.