THE WHAT? Unilever has been piloting a ‘flexible pay’ scheme that allows junior staff to join its executive share scheme, a privilege usually reserved for senior employees, and choose the percentage of their pay they take as a bonus, according to a report published by the Financial Times.
THE DETAILS Peter Newhouse, Unilever’s Global Head of Reward, spearheaded the scheme, branding the notion of fixed pay as ‘archaic’. The trial was carried out on 200 staff across the UK, US and the Netherlands.
Some 20 percent of staff chose to pay their entire bonus into the share scheme, while 20 percent opted to alter the balance between their fixed and variable pay, per The Financial Times.
Those on a higher wage invariably decided in favor of a higher bonus and were twice as likely to shift the balance of their pay while, among lower paid staff who moved their salary, the percentage of those who opted for a greater proportion of fixed pay was significantly higher (90 percent).
THE WHY? Not only does allowing employees to personalise their benefits make Unilever a more attractive employer, saving valuable cash on recruitment by upping retention and attracting the best talent, but also those who choose in favor of a performance-related bonus will always be more invested in the overall success of the company.