We can help keep control of personnel costs

As we are both living and working for longer and longer, payroll and pension costs are rising. Handled properly, employers can achieve good cost control while at the same time ensuring the right skills development of employees.

A factual analysis of your payroll and pension costs

Payroll and pension costs are one of the biggest cost items of all. Virtually all companies hold pay reviews on an annual basis, which is good. What is less good is that these take place without consideration being given to pension costs during the pay discussion. The question is why is this accepted by the Boards of companies who represent owners?

Compensation & Benefits has developed a traffic light system that can change this. Payroll managers and managers with staff responsibility can use the traffic light system to easily identify employees whose pension costs deviate from the collective and the performance delivered at work. Ahead of pay discussions, we train managers to hold pay discussions in which they look at the employee’s total cost, which is then linked to position, pay level and performance.

We map out and analyse your personnel costs

Personnel costs consist partly of monetary costs and partly of indirect costs. Monetary costs include pay, pensions, benefits, skills development and holidays. Examples of indirect costs include working hours, sick leave, staff turnover, cost of lost revenue in connection with, for example, training or absenteeism, and induction processes.

Our structured method produces results

We analyse data from a number of different data sources such as payroll data, pension contributions, travel expense systems, time reporting systems and reporting of accidents/near accidents. With the aid of effective system support, we visualise and forecast current and future risks and challenges.

It may be appropriate to perform a “Personnel Cost Analysis” in order to achieve control and knowledge of the current situation and thereby to gain a better understanding of the cost profile for personnel. The analysis can then be used, for example, to analyse teams and project groups against the revenues that are generated. The analysis can contribute to internal tendering processes needing to be reviewed or teams to be regrouped in order to ensure better profitability.

Examples of areas covered by the analysis:

Staff turnover
Payroll structure
Holiday liability
Pension
Sick leave
Working hours
Benefits
Personnel demographics
Manager ratio

In all areas, we analyse the current situation versus a desired situation. What are the costs now and – based on historical data – what does the trend look like? How will costs change in the short and the long term? What is the company’s situation compared with an external benchmark? Which areas is it most critical to focus on?

Setting pay for business development

Opportunities to use the pay-setting tool as a management tool are increasing as labour market agreements provide more and more scope for individual managers to act. In modern agreements, pay and other terms of employment are agreed directly between employee and manager. Trade union organisations can only influence general payroll policy issues.

This new way of using the payroll tool as a management tool places greater demands on managers to be familiar with the content of agreements, the local payroll policy and the pay structure. Managers also need skills in conducting pay discussions, and the confidence to make well-considered assessments of employees.

This, combined with the fact that pay nowadays must be individual and differentiated, increases the need for system support and training for an organisation’s managers in setting pay, producing goals for setting pay, pay criteria and the methodology for conducting pay discussions.

Purpose

Our training will provide participants with:

good knowledge of the various elements of setting pay
good knowledge of agreements, the organisation’s pay criteria, payroll policy
knowledge of how to prepare and hold a pay discussion
practical training in holding a pay discussion

Target group

All managers with staff responsibility