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Roles need to be classified before regional pay is assigned, says Mercer

Jun 01
Tags: Mercer, UK: London
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Roles need to be classified before regional pay is assigned...

by Oskar Marks

Regional pay should only be issued after public sector organisations have assessed which roles have local, regional or national markets, according to Mercer.

It said that salaries should be approached differently depending on how junior or senior the role is.

Lower and mid-tier positions are filled by candidates who come from local labour markets, and therefore a local approach to pay should be taken.

This is compared with the more senior roles where applicants come from a national market.

Daniel Hibbert, principal at Mercer and a public pay specialist, said: "The arguments are strongly in favour of local pay decision making as this ensures that public sector services can adapt jobs, pay systems and the underlying talent and HR processes quickly and in a cost-effective manner to suit local needs."

Mercer has recently made a submission to the Office of Manpower Economics, which is part of the Pay Review Bodies' call for additional evidence on regional pay.

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