The FRC is the UK’s independent regulator tasked with promoting transparency and integrity in business. Alongside setting standards for accounting and actuarial work, it promotes quality corporate reporting and enforces set arrangements. As the Competent Authority for audit in the UK, the FRC sets auditing and ethical standards and monitors and enforces audit quality.
In 2017 the FRC commissioned Beamans to carry out a thorough review of its reward and performance arrangements. This was prompted by a growing concern that their current arrangements were not fit for purpose, nor credible with staff and managers. They also needed to address the key business imperative to recruit and retain high calibre professionals capable of carrying out front line regulatory roles across the financial service industry.
Insight & Approach
The FRC had identified six key areas for specific attention, namely:
- Job families & job titles with associated pay bandings
- Market benchmarking
- Cash pay mechanisms, base and bonus
- Performance management and the link to pay
- Career progression arrangements
- The overall employee /employer proposition
So our initial work focused on carrying out a review of their current reward arrangements, alongside understanding their future requirements. This involved a structured programme of consultation with the Executive Team and the Remuneration Committee as well as a comprehensive employee consultation programme. The outcome was a clarification of the FRC reward strategy for the future, and establishing guiding principles and strategic priorities for reward. Once complete, we proceeded to the next stage of the work. This included:
- Developing & designing a new work level framework supported by level descriptors and classification factor definitions
- Conducting an external benchmarking exercise
- Developing market reference point (MRP) salary levels for each role
- Assisting with the migration of all roles in the FRC to the new work level structure and supporting the implementation of the new framework and associated pay arrangements
"Beamans were excellent. We heard pitches from several firms and from the very start Beamans demonstrated they understood what the FRC needed. They were highly professional in their work and a good partner with us in developing and implementing the business critical solutions we needed. As well as their technical expertise we were impressed by the rapport and understanding they developed with people across the organisation from the most junior to the most senior"
This approach was developed to leave the FRC with an integrated framework capable of managing people and jobs across the whole organisation. It was also designed to address their previously identified areas for attention, and support broader HR initiatives including, succession planning, career progression pathways and professional development needs.
Since completion of the work described above we have been delighted to continue advising the FRC and its Remuneration Committee on a range of related issues. These include performance management, employee communications and bonus arrangements.
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