Bespoke reward strategies ensure that organisations are seen as attractive and competitive employers in the markets in which they operate. The benefits of implementing a tailored Reward Strategy include:
- Consistency in decision-making regarding reward, thereby ensuring that adequate attention is provided with regards to both internal and external equity;
- A record of the guidelines that inform all reward decisions;
- Classification of Critical skills, Scarce Skills and Core Skills (and the specific treatment thereof)
Organisations can differentiate themselves by customising their Reward Strategies depending on the market in which they operate in order to attract and retain valuable employees within their organisation.
We have designed & developed a number of reward strategies for clients in a range of industries.
Incentive Schemes (Short and Long term) are used to reward and retain superior performers, employees. It is variable pay in addition to guaranteed pay and may change substantially from year to year, based on various variables.
Typically, performance of either the individual / company, or both, would determine the eligibility, quanta and mechanics of the incentive scheme, and should of course be linked to the Performance Management system. The schemes could be paid annually or over a longer period of time, dependent on the behaviours the organisation wishes to drive.
There are a number of types of incentive scheme: performance bonus, gain share, profit share, deferred cash, share options etc. Each scheme designed by Emergence Growth is carefully considered, designed, modelled & tested, and is aimed at driving the results and strategic objectives of the organisation.
Outsourcing / Secondment
Reward outsourcing / secondment as an organisational strategy has increased substantially over the last decade, largely due to the increased complexities and cost of managing the people agendas across different cultures and geographies.
The ability to improve delivery in critical areas, whilst reducing the cost makes reward outsourcing an attractive proposition for all size organisations.
We offer specialised resources, backed by the full support of our consultancy. The result is superior quality data, service and knowledge, in the most remote and difficult to reach areas across the African continent.
The prevalence of Cost-to-Company (CTC) has increased dramatically over the past years, and conversions to this pay approach are becoming increasingly attractive. There are various reasons for this, but the most common include the alignment of staff remuneration with best practice, limitation of liability, offering staff flexibility in their pay choices, all whilst serving to attract and retain superior talent. If implemented correctly, it would benefit its employees without necessarily increasing costs, thereby contributing to retaining your key skills.
Quite often employees require different elements of pay at various stages within their life (e.g. younger employees may prefer a higher net pay, whereas employees who are closer to retirement may require higher contributions towards their pension scheme). By implementing a Cost-to-Company (CTC) approach, organisations are able to offer all employees enough flexibility to adjust their remuneration to suit their lifestyle.
Remuneration Audits are typically requested by organisations to determine anomalies with regard to internal management of salaries, resulting in equity issues with regard to remuneration packages.
The analysis of remuneration data for any discriminatory practices/anomalies typically happens in the following areas (both could be extended to cover any areas in which the organisation is feeling pressure):
- Grade levels;
- Experience within the current role; and
- Job Title.
Utilising a third party to conduct a remuneration audit lends credibility to the process, thereby mitigating any perceptions around bias or fairness.
Work of equal value includes work that is the same, substantially the same or of the same value as other work, as contemplated in Regulation 4 of the Regulations to the revised Equal Pay for Work of Equal Value section in the Employment Equity Act. Whilst the legislation is currently specific to South Africa, Equal Pay for Work of Equal value is a good overall remuneration principle. Work of equal value is explained as the same work as another employee, if:
- Work is identical;
- Work is interchangeable;
- Work is substantially the same or sufficiently similar to be reasonably considered as similar; or
- Work is of the same value of another employee in a different job.
With the amendments to section 6 of the Employment Equity Act promulgated on 1 August 2014, it requires that all organisations have a job grading system in place or a robust method of explaining why certain categories of staff earn certain amounts, and be able to provide defensible differentiation should pay differ. This legislation is applicable to all organisations.
Emergence Growth has developed an audit framework and process, giving you peace of mind and ensuring that your organisation can remain legally compliant from a remuneration perspective.
Organisations generally spend insufficient time creating a well-designed Expatriate Framework. This is dangerous given the rising cost of sending Expatriates abroad, and that the highest employee turnover in Expatriate assignments is at the beginning and end of the assignment. In addition, the remuneration of Expatriates often tends to be a rushed last minute decision due to urgent operational requirements. Inconsistent treatment of Expatriates quickly leads to unhappy employees, and can become a costly exercise to correct.
Emergence Growth offers a number of services in this area, and can be summarised as follows:
- Mobility strategy and policy development;
- Build-up model design & customisation;
- Cost-of-Living (COL) data;
- Hardship allowance data;
- Expatriate data;
- Analysis of expatriate remuneration & conditions of service; and
- Local market data for 180 countries globally.
Or send us a mail, and we will get back to you