Buzzing About HR
Buzzing About HR by https://www.kateunderwoodhr.co.uk is the go-to podcast for anyone looking to make their workplace better. Hosted by HR expert Kate Underwood, each episode dives into the latest HR trends, essential tools, and practical strategies to help businesses of all sizes navigate the ever-evolving world of work. From improving employee engagement to tackling real-world HR challenges, Kate shares actionable advice you can implement right away. Whether you're an HR professional, a business owner, or someone passionate about people, this podcast will keep you ahead of the curve and buzzing with ideas to drive success in your workplace.
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Buzzing About HR
Fair Pay or Favoritism
Have you ever given a quick pay rise to keep someone from leaving, only to watch it snowball into resentment across your team? That knee-jerk decision might be costing you far more than you realize.
With International Women's Day approaching and the National Living Wage set to increase next month, pay fairness questions are unavoidable for small business leaders. This episode dives deep into the real-world challenges of handling counter offers and pay decisions when margins are tight and good people are getting poached.
We walk through a practical decision framework that helps you navigate these difficult moments with clarity and consistency. You'll learn how to choose the right mechanism for each situation—whether that's a retention bonus, market adjustment, or progression increase—while protecting your business from equal pay risks that affect companies of all sizes.
The legal lowdown section demystifies equal pay law in plain English, addressing common misconceptions head-on. Contrary to popular belief, equal pay applies to businesses of all sizes, not just those required to report. Jobs don't need to be identical for comparisons to be valid, and "market rate" isn't a magic defence unless you can prove it with solid evidence.
Through mini-dramas illustrating common pay scenarios gone wrong, we demonstrate how seemingly small decisions can trigger costly spirals of resentment, claims, and turnover. The episode closes with a rapid-fire Q&A addressing your most pressing questions about comparators, job evaluation, and time limits for claims.
Pay decisions are well-being decisions that directly impact both your people and performance. Which approach will cost your business less: creating a fair structure that withstands scrutiny, or constantly firefighting departures and rebuilding teams?
Download our free one-page Paym Rise Decision Flow and share it with your busiest manager today.
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Until next time, keep buzzing and take care of your people!
Picture this it's Tuesday, the 4th of March 2025. Small logistics office in Portsmouth. Phones ringing, vans, late, costs rising. Everyone's a bit on edge. Jasmine steps in, eyes, tired, determined. I pivot my chair. Kate, I've had an offer Two quid an hour more. If you can match it, I'll stay.
Kate:I'm thinking that'd make her the third picker we could lose this week. What is going on? Just bump her now. We don't want to lose another key member. We'll sort the rest later. Quick raise or slow wildfire? Hi, kate, same role as Jasmine. Why is she on more than me? Handing in my notes Feels like favourites.
Kate:Here's the heart of it. Does paying one person more keep stability or spark resentment and turnover? Which one will cost us most? Hello, you lovely lot. I'm Kate. This is Buzzing about HR Today.
Kate:Fair pay or favouritism, counter offers and quick pay bumps. Smart retention or slow burn chaos. Plain English UK law only. If you've got a live case, get help early. Let's get practical. Kettle on Cake. Optional for morale, not policy.
Kate:Part one setting the scene Across small businesses. Right now, margins are tight. International Women's Day is this weekend. Fair pay is in the air and on LinkedIn everywhere. National living wage goes up. Next month your lower bands will shift.
Kate:Good people are getting offers. Managers feel cornered. The fastest lever is pay. But pay, the squeaky wheel, has a cost. Counter offers aren't evil. Unmanaged counter offers become patterns. Patterns become perceived unfairness. Perceived unfairness becomes churn or claims. And that, my friends, is how your diary gets eaten alive.
Kate:Part two Benefits versus headaches. Handle pay well and you get retention with fairness and trust. Clarity, a playbook, not panic. Defensibility if challenged. Budget control Fewer, ad hoc bumps Wing it and you get the favourites narrative. Equal pay risk if gaps skew by sex Turnover spirals. After one counter offer, cost creep, bands bent out of shape. It's like spaghetti, but less tasty. Part three the legal lowdown. Legal in one cup of tea. Equal pay basics Men and women must get equal pay for equal work.
Kate:That means like work, work rated equivalent or work of equal value. Every contract has a sex equality clause baked in value. Every contract has a sex equality clause baked in. If you pay differently, you need a material factor that isn't sex. If the difference indirectly disadvantages one sex, you'll need objective justification. Time limits exist.
Kate:Tribunal equal pay claims usually six months from leaving. Civil claims can run for years. Don't sit on problems. Fix what you can now. This week's context matters. Iwd is days away. Expect fairness questions. National living wage rises next month. Pressure is coming for lower bands.
Kate:Plan. Don't panic. Then plan two touchstones, one line each, as the v briley store staff could compare to depot staff. Comparators aren't always in the same building. Samira ahmed v bbc. Equal work needs equal pay.
Kate:Market isn't a magic wand. Without evidence, common, common traps, market rate as your only reason, weak if unproven or if it bakes in bias. We're under 250, so we're fine. Reporting might not apply. Equal pay law still does.
Kate:Part four, step-by-step process. Walkthrough Pay rise decision flow. Use this when someone Thank you. Define the ask Is this a retention counter, offer A market adjustment for the role, progression, a temporary responsibility allowance? Find comparators. Same role, same band, ideally same site. Note pay service skills performance. Scan for risk. Would a rise create or widen a sex-based gap? If yes, consider a band review, not a one-off bump. Pick the right mechanism Retention, bonus, time bound, market adjustment Applies to all in role Progression, increase Against a framework, responsibility allowance, temporary duties.
Kate:Write a short business case. Why now? Which mechanism Cost versus turnover risk, fit with your framework? Decide consistently. Apply the same tests as last month. If you diverge, write down why. Communicate clearly To the employee decision reason, review date To managers the principle behind it. Document and diarise File comparators and sign off. Set a review point three to six months. Zoom out quarterly. Run a quick fairness check by role or band. If you fix one, fix the pattern. Golden threads, fairness, consistency, transparent criteria and solid material factor thinking. When differences remain, also breathe. Then document Part 5. Mithbuster Parade Myth Equal pay only applies if jobs are identical.
Kate:Truth it also covers equivalent and equal value work. Myth we're tiny, the law won't look at us. Truth reporting is for big employers. The law covers everyone. Myth market rate always wins. Truth not if it bakes in bias or you can't evidence it. Prove it or lose it. Myth a quick counter offer is cheaper. Truth it can be the most expensive move. If it triggers churn or claims. Myth we'll keep it secret. Truth pay secrecy rarely holds Plan for daylight. If you'd be proud to explain it out loud, you're on safer ground.
Kate:Part six mini dramas three tiny scenes. Then fixes the counter offer spiral Manager we matched her offer. She's staying Colleague. So I must threaten to leave to be valued colleague, so I must threaten to leave to be valued. Fix set rules. Retention payments are rare and time bound.
Kate:If the roll rate moved, adjust the band and all incumbents, not just the squeaky wheel. Document the logic. Explain the principle Same roll, same range is a very useful sentence. The market rate fig leaf Director. Engineers are scarce. That's why the men earn more. Not a defence if it disadvantages women and isn't backed by evidence.
Kate:Fix. Use objective factors. Proven scarcity, skills responsibilities. Test for indirect bias. If a factor hits one sex more, you need objective justification. Unexplained gaps erode trust and mental health. The band bender Owner let's bump just this one person Quietly. Finance, then three more will ask tomorrow. Fix If the roll rate moved, move the band and bring others along. Announce the rationale in plain English. Consistency beats secrecy. Whispers cost more than clarity.
Kate:Part seven Practical takeaways. Five quick actions Map rolls into bands with ranges. Log comparators before any increase. Choose the right tool retention, market progression allowance, review patterns quarterly for equal pay risk. Explain decisions clearly in writing. If you can't explain it to a new starter in one minute, rethink it. And yes, a slice of cake can help the meeting, not the pay gap.
Kate:Part 8. Listener Q&A. Seven quick questions straight answers.
Kate:Question 1. One-off raise to keep someone and leave others, as is Answer. You can, but check comparators.
Kate:If it creates a sex-based gap without a strong objective reason, you're at risk. Write down your material factor.
Kate:Question two Do comparators have to be in the same building?
Kate:Answer Not always. With common terms across sites, comparisons can reach further. Think Asda v Briley.
Kate:Question three Do we need formal job evaluation?
Kate:Answer Not mandatory.
Kate:A simple banding or light job evaluation grid makes consistency easier and cheaper than a claim.
Kate:Question four Is market scarcity enough to defend a difference? Is market scarcity enough to defend a difference?
Kate:Answer Maybe, if it's real, evidenced and not indirectly discriminatory without justification. Keep your evidence, review it regularly
Kate:.
Kate:Question 5 how long to bring an equal pay claim? Answer Tribunal Usually six months from
Kate:leaving Civil claims Years. Don't wait to fix gaps. Question six we
Kate:already pay national living wage. Anything else to do? Answer yes, plan the April rise, adjust bans so the
Kate:uplift doesn't squash lower grades and create new
Kate:fairness issues. Question seven Should we publish or pay? Answer you don't have to. But
Kate:clearer ranges and criteria Reduce suspicion and make conversations easier. Think salary bands
Kate:what's on the table. Outro and call to action. Back to that opening scene. We saved Jasmine with a quick raise. Then we spent the week handling resentment and resignations. Pay decisions are well-being decisions. Fairness protects performance and people. What's cheaper for your business? A fair structure that stands
Kate:up to daylight or firefighting Pay Rise departures and rebuilding teams? Grab my free
Kate:one page PayRise Decision Flow Link in
Kate:the show notes. Share this with your busiest manager. I'm Kate.
Kate:This
Kate:is
Kate:Buzzing
Kate:About
Kate:HR. Kettle On Standards Up. See you next time.
