Extract from IDS Executive Compensation Review 324

CAA combines market and performance to attract talent

To attract and retain top talent, the Civil Aviation Authority (CAA) decided to link its pay structure more closely to individual performance and create more opportunities for career advancement. Alan Croxford, compensation and benefits manager at the CAA, explains how the new arrangements work and some of the thinking behind them. As the CAA’s approach to pay and progression wasn’t doing enough to reflect individual performance or market conditions it was decided that salary ranges should be broadened and linked more transparently to individuals and market forces.

Under the new structure, managers and professionals are on salary ranges with pay progression based on individual performance, although each year ranges are increased in line with an across-the-board award . Because the CAA is a public organisation and is unable to provide incentives such as share options and profit related pay, when benchmarking its reward practices against the external market, the emphasis is on basic pay, total cash and where possible, total benefits packages. This article looks in-depth at the review and progression arrangements and the incentives and benefits on offer.