Something extraordinary is happening in the strategy consultancy "Netzstrategen" based in Karlsruhe, Barcelona and Cologne.
After some employees were dissatisfied with their salary, network strategist André Hellmann let his team members decide for themselves which criteria they want to use to determine their pay.
First in a working group, then the concept was coordinated with the entire company.
The result: The time of salary negotiations is over.
Now the amount of the salary is based on objective criteria such as professional competence, experience and length of service.
"New Pay" is part of a new world of work: Many people work in the home office, bring their dog to the office or meet up with colleagues for yoga in the conference room. Dynamic work models such as agile work and flat hierarchies are trendy. No wonder that, in addition to work models, the remuneration structure is also being scrutinized. Tim Oldiges, CEO of the Headgate HR consultancy, knows that those who offer their employees a transparent, modern salary structure have a competitive advantage, because young professionals in particular value it: "The normal benefits are often no longer enough," he says. The New Pay idea is not just about the pay slip: In a study by the career network Xing, around 62 percent of the employees surveyed said that money is not the only way toto reward work and performance - more free time and benefits in kind are also welcome.
Nevertheless, the salary remains the most important factor when choosing a career for one in five (20.8 percent).
Work-life balance (15.2 percent) and the compatibility of job and family (10.9 percent) are also among the top 3. Jan Rudnicki, communications manager at the salary platform Salary.de, is not surprised: “Today's companies have to Skills shortage attract the most qualified and capable employees.
We live in a world of self-fulfillment, where the salary alone is no longer the only driver. ”Rather, more and more people are asking themselves the question of meaning, both privately and at work.
In the old world of work, the rule of thumb was: You don't talk about money
New Pay is part of the New Work idea. And New Work wants to change work processes, relies on personal interests, values and convictions. Rudnicki says that agile work and flat hierarchies are crucial. Employees want a work environment that they can understand and have a say in - this includes salaries. "New Pay means first and foremost to question the remuneration models in your own company and to be ready to change something." Every company has to find its own solutions, there is no silver bullet. Rudnicki outlines a timetable: First of all, everyone involved must be included in the planning. Then they work out a solution that as many employees as possible can become friends with. Once the new remuneration structure has been found, the process does not stop.“You're in a constant beta phase. The concept has to be checked and adapted internally again and again. "
The New Pay report by the management consultancy CO: X shows how complex this is. Together with Pforzheim University, she asked more than four hundred employees how they rate the new pay dimensions of fairness, transparency, personal responsibility, participation, flexibility and we-thinking. The respondents stated that they are more importantly procedural equality than equality of distribution. That means: instead of salary agreements behind closed doors, they want a transparent salary structure. Not everyone has to get the same salary or know what the person sitting next to them earns - but it should follow a comprehensible key. The respondents stated that they would like to understand the remuneration process, they would like transparency about the salary level of colleagues who do equivalent work in the company.
It was important to the respondents that remuneration models are flexible and can be adapted to individual needs. Employees would like to choose between more vacation days, higher salaries or shorter working hours. Personnel consultant Oldiges says: “Young people in their first management position often have different ideas than previous generations. For many, freedom and flexibility are more important than an opulent salary. "
In the old world of work, the rule of thumb was: You don't talk about money.
This law is being softened in the new new pay structures.
Jan Rudnicki is certain: “In the future, New Pay will largely replace the rigid, non-transparent remuneration models.” In any case, network strategist Hellmann is satisfied with his new salary structures: “Since then, there have hardly been any discussions about who earns how much,” he says.
And if it does, the discussion will be much more objective and competent.