Remuneration systems are procedures for the payment of employees. They should lead to fair and transparent pay and, if possible, provide incentives to motivate employees and improve their performance. Therefore, they include different performance-related components and thus individualise wages. REFA International AG supports you in finding fair solutions accepted by all parties.
REFA checks and assesses your remuneration system
Existing remuneration systems (such as the Piece-work wage) are rarely questioned or even modified - because they are established and seem to work well. Usually, they are only changed in the case of obvious discrepancies or dissatisfaction. Take precautions: With us, you have a partner with many years of experience who systematically reviews your remuneration structures, uncovers weak spots, identifies opportunities for improvement and makes proposals for fair solutions accepted by all parties.
Case study Development of a performance wage system >>
We develop a company-specific remuneration system for you
Time studies are the basis for a revision of the existing remuneration system or even the development of a completely new structure of wage calculation. For decades, they have been among the “classics” in REFA counselling (e.g Basic piece rates). In the process, targeted or already initiated optimisations or other changes in value creation processes are taken into account.
In this way, we achieve
- pay equity as far as possible,
- the elimination of imbalances,
- the creation of performance and motivational incentives,
- an improvement in the quality of the performances.
Mediation between works council and employer
As an institution, REFA is a neutral party mediating between the employers and the employees; this has been known for decades. The basis for this neutrality, which also applies to collective bargaining policy, is the participation of representatives of the two social partners - the Confederation of German Employers’ Associations (Bundesvereinigung der Deutschen Arbeitgeberverbände) and the Federation of German Trade Unions (Deutscher Gewerkschaftsbund) - on REFA's Supervisory Board. This is why we are usually a welcome mediator in the event of differences of opinion as well as a wide variety of problems in remuneration issues and mediate between the works council and the employer. Both sides are aware of the fact that we need to propose simple and, in particular, forward-looking Remuneration methods.
Time-based or performance-based pay?
As your partner, REFA International AG advises you on the design of various wage systems. This may include time-based payments, where a fixed amount is paid for a (working) period (such as a week or a month). Often, however, the actual performance of the employees is remunerated - with a performance wage such as piece rate pay, group piecework wage and - as a more modern approach - bonus wage Bonus remuneration. Especially in performance wage, you benefit from decades of comprehensive expertise in time studies as a basis for determining and introducing fair remuneration systems.
By choosing the right wage system, you not only set incentives to increase performance, you also increase employee motivation through fair pay. In this way, you strengthen their loyalty to and identification with the company.
Bettina Dirks
