BSBHRM505 Manage remuneration
and employee benefits


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This unit describes the skills and knowledge required to implement an organisation’s remuneration and benefit plans. It incorporates all functions associated with remuneration, including packaging, salary benchmarking, market rate reviews, bonuses and the legislative aspects of remuneration and employee benefits.

It applies to individuals who are human resource managers responsible for overseeing an organisation’s remuneration process.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Unit Sector

Workforce Development – Human Resource Management


Elements and Performance Criteria



Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1 Develop organisation’s remuneration strategy

1.1 Analyse strategic and operational plans to determine the scope of remuneration and benefits plans

1.2 Undertake research on current practice, recent developments and legislative parameters for remuneration strategy

1.3 Develop options for consideration by relevant managers

1.4 Present options showing the link to organisational strategic objectives

1.5 Ensure remuneration policies and incentive plans are agreed and recorded

1.6 Ensure organisation is positioned as an employer of choice and regarded as a desirable workplace

2 Implement remuneration strategy

2.1 Research occupational groups to determine those which are industrial agreement based

2.2 Access or undertake market rates surveys regularly to ensure the organisation’s required level of competitiveness for particular occupational groups is maintained

2.3 Align remuneration and benefits plans with performance management system

2.4 Ensure employees receive at least their minimum entitlements according to organisational policies and legal requirements

2.5 Ensure salary packages comply with organisational policies and legal requirements, including fringe benefits tax (FBT) and superannuation

2.6 Ensure incentive arrangements, if included, comply with the organisation’s remuneration strategy

3 Review and update remuneration strategy

3.1 Consult managers and employees about the effectiveness of the remuneration strategy

3.2 Amend strategy and plans as necessary to meet organisational policies and legal requirements


Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.






1.1-1.4, 2.1-2.3, 2.5, 2.6, 3.2

Evaluates and integrates facts and ideas to construct meaning from a range of text types


1.2, 1.3, 1.5, 2.2, 2.3. 3.2

Develops complex material for specific audiences using clear language and appropriate structure to convey explicit information, requirements and recommendations

Oral Communication

1.4, 1.5, 3.1

Draws on a repertoire of open questioning and active listening skills when consulting others

Uses appropriate terminology and non-verbal features to present information or clarify understanding


1.1, 2.3, 2.4, 2.6,

Analyses numerical information to determine employee remuneration and benefits according to a clear set of parameters

Navigate the world of work

1.2, 1.4, 1.6, 2.3-2.6, 3.2

Adheres to relevant organisational policies, procedures and legislative requirements

Considers own role in terms of its contributions to broader goals of the work environment

Interact with others

1.4, 1.5, 3.1

Uses effective presentation and collaboration skills to show options, negotiate agreement and gain feedback on policies

Get the work done

1.1, 1.3, 2.2, 2.3, 3.2

Accepts responsibility for planning and sequencing complex tasks and workload, negotiating key aspects with others, taking into account capabilities, efficiencies and effectiveness

Applies systematic and analytical processes to determine appropriate models of remuneration and benefits for particular occupational groups and individuals

Uses evaluation and analysis of feedback to decide on improvements to strategy