Rules For Salary Setting. Employer and University Graduate Unions Jointly
Rules For Salary Setting. Companies that are profitable and develop create the financial conditions for real salary development. It is of utmost importance for the companies’ development and competitiveness that they have employees with the right skills who are given the opportunity and the incentive, throughout their professional lives, to develop their skills appropriately. If there are salaried employees whose skills and salaries are not developed appropriately, special attention must be paid to them. If necessary, the parties may, in connection with establishing a timetable, commence negotiations by reviewing the content of this agreement in order to eliminate any unclear points. Items for discussion during review and planning: - experience of the salary process and previous salary reviews - the economic and market preconditions - the current salary structure and future needs for change that are identified - how the salary process shall prevent there being non-objective pay differences on the basis of gender - objectives and priorities and associated salary criteria for the future salary review on the basis of the desired salary structure and the needs for change that have been identified - forms and conditions for the salary review - timetable for the salary process Information on the salary process and its timetable must be provided to managers and employees in an appropriate manner. In connection with the salary survey and analysis pursuant to the Discrimination Act, the local parties should find and develop methods of collaboration. The salaries must be individual and differentiated. Market forces and the local parties’ perception of a certain salary structure in the company also affect the salaries. Each salaried employee must know the grounds on which salary is set and the requirements that apply in order to receive a salary increase. The employer and the salaried employee have joint responsibility for skills development. Increased knowledge and experience allow the salaried employee to develop in order to perform tasks that are more demanding and require more responsibility. It is highly important that the factors that affect a salaried employee’s salary are assessed as objectively as possible. Factors that influence individual salary-setting must of course be gender-neutral. To achieve the goal of good salary-setting, it is necessary for the company to have a well established salary policy that is clear, based on the agreed rules for salary- setting and well known. A ...
