{"id":14894,"date":"2025-04-01T10:18:00","date_gmt":"2025-04-01T10:18:00","guid":{"rendered":"https:\/\/www.brightmine.com\/uk\/?post_type=resources&#038;p=14894"},"modified":"2026-07-22T13:40:18","modified_gmt":"2026-07-22T13:40:18","slug":"how-to-conduct-a-pay-review","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/uk\/resources\/talent-management\/performance-management\/managing-performance\/how-to-conduct-a-pay-review\/","title":{"rendered":"How to conduct a pay review"},"content":{"rendered":"\n<div class=\"wp-block-group alignwide has-primary-white-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-f85887e8 wp-block-group-is-layout-constrained\" style=\"border-radius:25px;padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-929090b5 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:70%\">\n<p class=\"wp-block-paragraph\">By <strong><strong>Sarah Welfare<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The pay review &#8211; also known as a pay settlement or award &#8211; is one of the basic building blocks of reward and the majority of organisations carry one out each year. They can vary from a cost-of-living increase for all employees negotiated with a trade union to a finely differentiated range of individual increases based on performance, market rates or progression.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employers may award the same pay increase to all employees at their organisation, or may choose to differentiate between different employee groups (also known as bargaining groups). The pay review process may also include a review of benefits, and other terms and conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While employers take a whole range of factors into account in deciding their pay review &#8211; from inflation to comparable rates in the local labour market &#8211; affordability will be the biggest concern for most and sometimes a review may result in no pay increase. But even when only a small pay rise is possible, the annual pay review can still provide an opportunity for the organisation to put its reward principles into practice, both through outcomes and through the way the review is carried out.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-in-this-guide-learn-about\">In this guide, learn about:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Objectives<\/li>\n\n\n\n<li class=\"\">Planning, responsibilities and timetable<\/li>\n\n\n\n<li class=\"\">Pay review date<\/li>\n\n\n\n<li class=\"\">Duration<\/li>\n\n\n\n<li class=\"\">Process overview<\/li>\n\n\n\n<li class=\"\">Negotiated pay reviews<\/li>\n\n\n\n<li class=\"\">Setting the budget<\/li>\n\n\n\n<li class=\"\">Types of pay review<\/li>\n\n\n\n<li class=\"\">Factors to take into account<\/li>\n\n\n\n<li class=\"\">The cost of living<\/li>\n\n\n\n<li class=\"\">Market rates and salary surveys<\/li>\n\n\n\n<li class=\"\">Comparable pay awards<\/li>\n\n\n\n<li class=\"\">Performance-based awards<\/li>\n\n\n\n<li class=\"\">Using a pay matrix<\/li>\n\n\n\n<li class=\"\">Reviewing the pay structure<\/li>\n\n\n\n<li class=\"\">Other elements of the pay and benefits package<\/li>\n\n\n\n<li class=\"\">Pay freezes and cuts<\/li>\n\n\n\n<li class=\"\">Checking for equality issues<\/li>\n\n\n\n<li class=\"\">Employee communication<\/li>\n\n\n\n<li class=\"\">Transparency<\/li>\n\n\n\n<li class=\"\">Learning for next time<\/li>\n<\/ul>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-want-to-see-more\">Want to see more?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For full access to <strong>How to conduct a pay review<\/strong>, sign up to a HR and Compliance Centre subscription today.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" 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strategies, implement best practices and set your organisation up for a brighter future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Learn how our tools, resources and automation can empower you and your team.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/uk\/solutions\/?intcmp=cta|blog|solutions|learn-more\" style=\"border-radius:25px\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group lnrs-hide-block-on-mobile has-global-padding is-layout-constrained wp-container-core-group-is-layout-64c039dc wp-block-group-is-layout-constrained\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-bottom:0\">\n<hr class=\"wp-block-separator has-text-color has-secondary-gray-color has-alpha-channel-opacity has-secondary-gray-background-color has-background\" style=\"margin-top:10px;margin-bottom:10px\"\/>\n\n\n\n<p 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style=\"border-radius:25px;margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--30)\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\" id=\"h-topics-on-this-page\" style=\"font-style:normal;font-weight:500\">Topics on this page<\/h3>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-7387b849 wp-block-group-is-layout-flex\">\n\n<div class=\"taxonomy-topic has-link-color wp-elements-5ec59eb01c09ec2f1d84a6b36973ff83 wp-block-post-terms\"><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/talent-management\/performance-management\/managing-performance\/\" rel=\"tag\">Managing performance<\/a><span class=\"wp-block-post-terms__separator\">, <\/span><a href=\"https:\/\/www.brightmine.com\/uk\/resources\/talent-management\/performance-management\/\" rel=\"tag\">Performance management<\/a><\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cararra-gray-color has-alpha-channel-opacity has-cararra-gray-background-color has-background is-style-wide\"\/>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-about-the-author-0\" style=\"font-style:normal;font-weight:500\">About the author<\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-a903a136 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100px\">\n<figure class=\"wp-block-image size-full is-resized has-custom-border is-style-rounded\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/cdn.brightmine.com\/wp-content\/uploads\/sites\/2\/2024\/01\/13144636\/speaker-avatar.webp\" alt=\"\" class=\"wp-image-14506\" style=\"border-radius:25px;object-fit:cover;width:100px;height:100px\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Sarah Welfare<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sarah Welfare was formerly an HR practice editor at Brightmine, with responsibility for content on pay, benefits and international HR.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sarah has more than 15 years&#8217; experience in the HR\/employment field, having worked on both sides of industry at the CBI and then at the Amalgamated Engineering and Electrical Union. After that, she was employment policy director for the Equal Opportunities Commission, where her main role was to promote the use of equal pay audits in the private sector.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to conduct a fair and effective pay review with practical HR guidance to support transparency, consistency, and strong performance management.<\/p>\n","protected":false},"author":71,"featured_media":14910,"comment_status":"closed","ping_status":"closed","template":"wp-custom-template-new-resources","categories":[12],"tags":[],"topic":[96,92],"class_list":["post-14894","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-guides-how-to","topic-managing-performance","topic-performance-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.3 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to conduct a pay 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