Abstract
The aim of this study was to develop an in-depth understanding of the relative importance of the factors driving change to remuneration policy decision making and the impact on organisations. Data from 148 organisations was analysed and subjected to rigorous statistical analysis. The results show that the most potent drivers of remuneration policy are retention of key staff, financial results and organisation strategy. The greatest changes to remuneration policy were in the areas of variable pay, merit/performance related pay, market position, total package and job evaluation/ broadbanding policy. A strong correlation was found between the extent of change in Remuneration policy and impact on the organisation. This suggests that the greater the change in Remuneration policy the greater the impact on the organisation.