The Managers’ Benchmark Pay Report 2007/08

A 'real world' perspective on pay decisions - that's the essence of this publication. More than ever before, employers need to ensure they pitch their remuneration packages for managers and professionals at the right level. But getting it right is not just about benchmarking salary rates, it is also about making sure reward is delivered and structured in the best possible way. As well as helping to fix salary levels, the managers' benchmark pay report helps meet these wider ‘benchmarking’ needs.

Reviewing managers' pay almost always means turning to a salary survey for information. Certainly surveys are an essential data source, but what they cannot do is provide the type of 'real world' feel that comes from detailed information about particular companies. Designed to complement the aggregate data from salary surveys, the report provides details of benchmark salaries and salary structures used for managerial and professional groups in a selection of major, named organisations. And this year, for the first time, these in-depth case studies are complimented by an IDS survey giving a broader picture of current management reward practice and trends.

Contents of this research report

An introductory chapter sets the scene, including information on pay movements, salaries and bonuses collected during 2007 by the IDS Executive Compensation Review and giving an overview of the findings uncovered by the detailed case studies in the report.

1 Survey of reward practice and trends

To provide an additional insight into the decisions being taken by a cross-section of employers on key reward issues, this edition of the publication contains the findings of an IDS survey into reward practice and trends.

Aggregated analysis of the arrangements in place for reward elements like basic salaries, bonuses and incentives is provided, but the survey also looks at the attitudes of the pay specialists questioned. The effectiveness of their pay structures, for example in supporting business goals or motivating employees is considered. Meanwhile, future challenges and anticipated pay increases or changes in strategy and provision of benefits are all explored.

2 Featured case study organisations

Previous editions of the managers’ benchmark pay report have covered over 30 named companies, featuring employers from across all the main sectors of the economy, including Ford, British American Tobacco, Lloyds TSB, Friends Provident, BT Group,Tesco, the BBC and Transport for London.

In addition to salary details, the case studies report on:

• major changes to pay and grading and other factors influencing the most recent review
• how each organisation approaches salary setting
• progression arrangements
• incentive schemes, such as bonuses and share schemes
• an outline of the benefit packages on offer, including pensions, holiday entitlements and company car arrangements

Published December 2007