Are Your Pay Structures Fair and Competitive? 

In today’s employment, the fairness and competitiveness of organisational pay structures are under increasing scrutiny. With growing expectations for pay transparency and equality —particularly in relation to the gender pay gap—organisations are being called upon to critically evaluate their compensation frameworks. 

What Makes a Pay Structure Fair and Competitive? 

A fair pay structure ensures that employees performing similar roles with comparable levels of responsibility and experience receive equal remuneration, regardless of gender, ethnicity, or background.  

A competitive pay structure, meanwhile, reflects current market trends, enabling organisations to attract and retain top talent. 

Key components of fair and competitive pay structures include: 

• Defined salary bands based on objective job evaluations 

• Transparent criteria for promotions, bonuses, and incentives 

• Regular benchmarking against industry and regional salary data 

• Ongoing pay audits to identify and address disparities 

The Gender Pay Gap: A Persistent Challenge 

Despite growing awareness and regulation, the gender pay gap remains a persistent issue, driven by factors such as historical inequalities, occupational segregation, and underrepresentation of women in leadership.  

In the UK, organisations with 250 or more employees are legally required to report gender pay data annually under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. 

Employers must publish metrics including mean and median pay and bonus gaps, as well as gender distribution across pay quartiles, using snapshot dates in March or April depending on sector. While non-compliance carries no financial penalty, it can result in enforcement action and reputational damage. 

Though not mandatory, publishing a narrative and action plan is strongly encouraged. These reports aim to promote transparency, accountability, and meaningful progress toward workplace equality—enhancing both organisational culture and employer brand in the process. 

Benefits and Challenges of Fair, Competitive Pay 

Organisations that adopt equitable and market-aligned pay systems benefit in several ways: 

• Attracting and retaining talent by offering compensation packages aligned with employee expectations 

• Building trust and reputation through visible commitment to fairness and equality 

• Enhancing employee engagement by promoting a culture of transparency and inclusion 

• Reducing legal and reputational risk through proactive compliance with pay equity regulations 

However, challenges may include: 

• Financial impact of adjusting salaries to align with benchmarks 

• Complexity of implementation across varied roles and geographies 

• Change management issues, particularly in legacy pay structures 

How can View HR Support  

An experienced HR consultancy can provide invaluable support in designing, reviewing, and implementing fair and competitive pay structures. Their services may include: 

• Pay audits and gap analyses to assess internal equality and identify inconsistencies 

• Benchmarking services using up-to-date industry data to ensure market competitiveness 

• Job evaluation frameworks to ensure objective role classification 

• Strategy development to align pay with business goals, diversity objectives, and legislative requirements 

• Change management support to guide communication and implementation across the organisation 

By partnering with an HR consultancy, organisations gain access to specialised expertise, data insights, and best practices that ensure compensation strategies are both effective and compliant. 

The case for fair and competitive pay is clear: it enhances organisational performance, supports talent strategy, and strengthens employer brand. With the gender pay gap and broader pay equity issues under increasing scrutiny, now is the time for employers to review their compensation practices. With the support of an experienced HR consultancy, organisations can build structures that are both equitable and future-ready. 

Would you like to discuss how View HR can help with this topic and more – Get in touch today!