The world of work is undergoing major changes, for numerous reasons. Digitization, changes in fixed work structures, personal as well as other New Work factors mean that existing wage models should also be revised.
New Pay is a self-conceived construct of the New Work and results from it. New work structures must and should also take remuneration into account at the end of the day. Old pay models seem to have had their day; instead, there are a variety of new approaches to fair pay that also take into account the basic needs of employees. The issue here is less about the amount of wages paid and more about putting them in relation to working hours and finding an equitable solution that satisfies all employees. In the best case, this makes them feel valued in their work and this motivates them to put more energy into their tasks.
New Pay suitably implemented?
The difficulty is finding the right model. Some companies, such as Deutsche Bahn, ask employees specifically what they have in mind. They then develop different “offers” from this. Employees are allowed to vote and then decide democratically whether they want more paid vacation days or a higher monthly salary, for example. Special payments are also often a problem in this context, because only a few employees receive them. This leads to an unbalanced relationship with other employees, it builds up tensions and demotivates. It is better to handle the issue of wages transparently and to find solutions together that suit everyone and are distributed equally. The goal should be not just to have money in the bank account at the end of the month, but to feel valued and recognized in order to start the New Work with motivation.
What participations the New Pay model offers
1. Create transparency
Supervisors should always keep salaries transparent. This creates trust among employees. New salary determination processes are just as affected by this basic principle as existing fixed salary structures.
2. Optimize performance ratios
Incentives for work success should alternatively be based on requirements and needs and not give way to rigid bonuses. This motivates more strongly and at the same time creates a shift away from the narrow link between performance and money toward a free interpretation.
3. Structure salary models
In many companies there are still hierarchy-dependent salary models. Those who work in the top position receive the highest salary, after which it decreases towards the bottom. However, since old structures are increasingly dissolving and companies are focusing on employee equality, it is also important to catch up here and throw these salary models overboard as well.
4. Creating fairness
The goal is to find a model of fair compensation for all. This finding is characterized by the principle of trial and error. Those who communicate openly and try to work out fair solutions together will be successful.
5. Self-determination
The salary of employees should not be a decision made solely by the boss. Rather, he should involve his employees in this decision-making process. Factors of individual evaluation of their own work also come into play.
6. Remain flexible
The old saying “time is money” should be reconsidered. Flexibility and time off are important factors in pay. They are also important for a good work-life balance. In addition to money, employees should therefore also be provided with sufficient vacation days and free time after work.
7. Failure allowed
Every salary model should always remain open to change and optimization. Failure is part of this experience. It is not only possible, but desired in order to keep the process of this finding dynamic.
It is quite possible that not all factors for the successful implementation of a New Pay model will work right away and can thus be implemented in every company without any problems. The considerations are more about creating basic incentives to change something and thus to be able to better adapt to the changes of the New Work.
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