Projects

On behalf of the Review Bodies it supports, the Office of Manpower Economics commissioned IES to explore pay progression mechanisms (the mechanism by which an individual moves up their pay range) to enhance understanding of how they work and how they have been modernised. This study was carried out through 10 case studies to identify the various forms of pay progression and analyse their advantages and disadvantages.

A National Minimum Wage Apprentice Rate (NMWAR) at £2.50 an hour was introduced in October 2010 and increased to £2.60 shortly after. IES was asked by the Low Pay Commission to deliver a research project on how the introduction of the NMWAR had affected important outcome variables. We undertook quantitative research combining descriptive analyses and impact assessments of the NMWAR introduction, in particular: statistical analysis of the ‘bite’ of the NMWAR descriptions of and impacts on levels and composition of apprentice pay and completion of apprenticeships. Our study addressed the great difficulties in obtaining informative impact measures of the introduction of the NMWAR by applying evaluation methods (such as a difference-in-differences estimator), which estimate counterfactual outcomes and benefit from the relatively dissimilar regulation of apprentice pay in the different countries of the UK prior to its introduction.

IES worked with the Equality and Human Rights Commission (EHRC) to consider the most appropriate methods and measures that private and third sector employers could use to report voluntarily on gender pay gaps, in support of a clause in the Equality Bill then progressing through parliament. The work involved in-depth interviews with a stratified sample of more than 30 UK employers, as well as analysis of the responses to the EHRC’s public consultation on the issue.

IES undertook a review of Guardian Media Group’s (GMG) executive remuneration arrangements. The review involved both external market comparisons and analysis of internal relativities. The review supported the existing principles underpinning GMG’s approach to remuneration while recommending some modifications to how executives’ remuneration is structured.

A study on wage bargaining schemes and pay outcomes for Eurofound with two elements: A summarising framework of the theory of the institutions involved in wage bargaining systems and more widely, social institutions and economic policy regimes, the specifics of the productive economy and social and demographic characteristics affecting pay outcomes in aggregate economies. Dynamic panel models for a large panel data set of EU Member States, spanning over all available points in time (1990-2012) will be used for empirical estimates on the effect of specific collective bargaining institutions on a variety of dependent variables such as wage growth, wage drift, compensation, labour costs.

IES contributed to a study, commissioned by the London Borough of Newham and led by BMG Research, providing econometric research on the impact of successful learning at Levels 1, 2 or 3 on employment and wages for young people in Newham. The research design used a retrospective questionnaire to gain the full education and labour market biographies of young people who left compulsory schooling in 2006. The questionnaire delivered genuine panel data which were used to implement difference-in-differences models to explore the impact of vocational education and learning. Labour Force Survey data was also used to complement the analysis with evidence on the impact of skills for young people nationwide.

IES undertook a literature review on the role of collective bargaining and social dialogue actors/institutions in strengthening the links between wages and productivity. The review identified countries for subsequent in-depth case-studies, and made policy recommendations on how to improve collective bargaining, wage-fixing methods and criteria to strength the wage-productivity link.

IES helped the Architects Registration Board to carry out their first ever all-staff attitude survey, as well as reviewing the competitiveness and appropriateness of their current rewards package. The survey involved a written questionnaire and all staff also participated in focus group discussions. The study revealed very high levels of employee engagement and pride in the organisation, and general appreciation of the total rewards package. However, a number of changes to pay, bonus and pension arrangements are currently being considered in order to continue and enhance staff motivation in the future.

We helped London Councils with a project investigating how total reward can be implemented in local government. London Borough of Camden is acting as the pilot organisation. It was apparent that pay plays less of a part in why people join, stay and are motivated. We looked to see how we can link together the various features of work that engage staff into a total reward approach which itself could form part of the employer brand. This meant examining such things as career development, non financial recognition, working environment, leadership etc and how they related to terms and conditions of employment.

IES has been working with Scottish Natural Heritage to review and develop a number of components of their new reward strategy. The first of these has been to conduct a specific market rewards survey of 17 other relevant organisations. Scottish Natural Heritage employes an unusually diverse range of specialists and so quality market information was not available from existing sources. The survey has given them a much more accurate indication of the competitiveness of their pay and benefits, as well as information and ideas on the broader aspects of total rewards such as flexible working policies. The second involved carrying out an on-line survey of staff attitudes to all aspects of their rewards, this area having been highlighted by their regular annual attitude survey. The survey was supported by focus group discussions with a representative sample of employees. Both studies have formed the basis for a wide-ranging set of proposed reward reforms.