Market benchmarking, pay reviews, and bonus affordability
FREE03 – People Professionals and Finance
This CIPD Level 0 learning video, part of the FREE03 – People Professionals and Finance unit, explores market benchmarking, pay reviews, and bonus affordability to help you understand how reward decisions connect to organisational affordability and strategy (AC 2.3). The video covers essential concepts including pay frameworks, salary drift, total reward structures, and pay review modelling, whilst examining the critical relationship between base pay, benefits, and development investment. You'll also discover how to assess bonus affordability and navigate equal pay risks and compression issues within your reward strategy. By completing this video, you'll gain practical knowledge to make financially sustainable reward decisions that align with your organisation's strategic objectives.
Assessment Criteria 2.3
Explain how reward decisions link to organisational affordability and strategy.
Indicative Content
To include: pay frameworks; salary drift; total reward; market benchmarking; pay review modelling; bonus affordability; equal pay risk; compression; trade-offs between base pay, benefits and development investment.
What You'll Learn
Video covering: Market benchmarking, pay reviews, and bonus affordability
About FREE03 – People Professionals and Finance
To develop learners’ understanding of essential finance concepts in business and how people professionals use financial insight to support workforce decisions, budgets and organisational performance.
More FREE03 Videos
Understanding organisational controls and why they matter
AC 3.2 – Discuss the importance of controls, authorisation and data quality.
Metrics, visuals, and working with finance colleagues
AC 3.3 – Explain how people professionals can communicate financial information effective...
Payroll, credit terms, and cash flow timing
AC 1.2 – Explain the difference between profit and cash and why it matters.
Start Learning for Free
Create a free account to access study guides and HR model videos. Upgrade to full features for just £8.99 per unit when you're ready.