Tag: Compensation Surveys

A diverse group of four people gathers around a laptop in an office setting, smiling and engaged. One woman uses a wheelchair. Plants and office supplies are visible in the background. Workplace Equity

EQUITY IN ACTION: ENSURE FAIRNESS ACROSS HR

Written by Noel Madolid on . Posted in Resources.

We’ve all heard the buzzwords: diversity, equity, inclusion. But how many organizations walk the walk when it comes to equity in managing their organization? It’s time to move beyond theoretical discussions and translate those well-intentioned conversations into concrete actions. 

Our “Equity in Action” series explored the building blocks of a truly equitable workplace, from establishing the equivalent worth of jobs and developing a grading structure to utilizing salary surveys and implementing a salary scale and fair pay management mechanisms. In this final installment, we’ll share how your organization can embed equity into every facet of its HR program, whether it’s recruiting new talent or planning for your successors.  

The key is a unified and objective approach to assessing employee skills and capabilities throughout the entire employee lifecycle. Think of standardized processes, clear metrics, and tools that evaluate employees based on their work. This blog post will share how you can integrate equity into your HR functions, ensuring fairness in every stage of a staff member’s journey. 

The challenge of subjectivity and flexibility 

For far too long, HR processes have been marred by subjective assessments. This approach not only hampers the quest for equality but also exacerbates inequality when each HR function is handled on a case-by-case basis. 

Are performance evaluations based on objective criteria, or are some staff members given more leeway than others? Is career advancement based solely on merit and potential, or do personal relationships and “gut feelings” come into play? Are all employees given equal access to training and development programs, or are specific individuals favored? 

These subjective and flexible approaches can create an uneven playing field, where some staff members are inadvertently given an advantage while others are held back. 

To counteract this, organizations need to shift toward a standardized, objective, and consistent approach to evaluating skills and competencies. This involves: 

  • Establishing clear criteria and metrics. Define what success looks like for each grade level and use these objective measures to assess their contributions and performance. 
  • Implementing standardized evaluation processes. Use the same tools and framework for all staff members in similar roles to ensure consistency and fairness. 
  • Providing regular and transparent feedback. Give staff members clear, actionable feedback based on objective data to help them understand their strengths and areas for development. 

By removing subjectivity and flexibility and, more importantly, embracing a more standardized approach, organizations can create a more equitable workplace where all employees are judged on their skills and work output and have a fair chance of succeeding. 

Birches Group’s five-step approach to achieving equity 

In our first post in this “Equity in Action” series, we introduced Birches Group’s five-step approach to achieving equity in compensation management. We highlighted the urgent need for organizations to move beyond discussions and take concrete action to address inequities in their compensation structures.  

Building on this framework, we examine how this integrated approach can be applied across all HR functions, creating an equitable workplace where every process— from recruitment to succession planning—is grounded in the principle of establishing the equivalent worth of each job within your organization. By minimizing the influence of personal biases at every HR function, we can ensure a level playing field for all staff. 

This integrated approach, as we discussed in the first post, offers a multitude of benefits that can transform your organization: 

  • It reduces bias and increases fairness by relying on objective criteria, thus minimizing the impact of unconscious bias and ensuring all employees are treated equitably.  
  • This approach also enhances transparency and trust. Clear, consistent processes foster transparency and build trust between employees and the organization. 
  • Furthermore, standardized processes streamline HR operations and free up resources for strategic initiatives, improving efficiency and effectiveness.  
  • Finally, objective data offers valuable insights into workforce trends and enables informed, data-driven decision-making. 

However, we understand that bridging the gap between the theoretical ideals of equity and real-world implementation can be challenging. Organizations often encounter obstacles like bias creeping into decision-making despite best intentions, vague criteria making it difficult to assess staff members objectively and consistently, and inconsistent processes leading to unfair treatment. 

To overcome these challenges, we encourage you to conduct an equity assessment and evaluate your current HR policies and practices critically. Ask yourself these questions: 

  • Does the candidate’s skill level determine your starting salaries, or are they influenced by factors like negotiation skills or salary history?  
  • Are your performance reviews based on clear, measurable metrics based on the expectations of the job, or are they prone to subjectivity and bias?  
  • Are your promotion criteria transparent and consistently applied, or are they open to interpretation?  
  • Does your compensation structure reflect the value of each grade level, or are there unexplained pay gaps?  

These are areas where most of the inequities and inconsistencies begin. 

An integrated framework and tool, like Birches Group’s CommunityTM platform, can be especially invaluable.  

It provides standardized processes to ensure consistency and fairness across all HR functions. Additionally, CommunityTM presents clear metrics to deliver objective measures of skills, competencies, and performance.  

By reducing reliance on subjective judgment, your organization can minimize the impact of bias and promote data-driven decision-making. This creates a truly equitable workplace where all employees are empowered to reach their full potential. 

Applying the approach across HR 

Let’s explore how our integrated approach to achieving equity can be applied across various HR functions: 

Recruitment 

Imagine a recruitment process where every decision is rooted in the defined skills profile of the job. This means targeting your recruitment efforts to attract candidates with the specific skills and competencies needed for the role, ensuring a diverse pool of qualified applicants. It also means using standardized assessments to evaluate each candidate’s skills and abilities, eliminating bias and ensuring that hiring decisions are based solely on knowledge and experience.  

Finally, it involves determining starting salaries based on demonstrated skill level within the respective pay range of the job, eliminating the need for salary negotiations and ensuring pay equity from day one. 

Pay movement 

With an integrated approach, pay increases become a transparent and objective process. Salary adjustments are tied to clearly defined skills growth and contributions, ensuring all staff members are rewarded fairly for their development. Clear criteria are established for salary adjustments, such as acquiring new skills, taking on increased responsibilities leading to bigger contributions, reducing the potential for pay gaps, and ensuring that pay decisions are data-driven. 

Learning & development 

Our approach transforms learning & development from a generic offering to a targeted investment in employee growth. It starts with using objective skills assessments to identify individual skill gaps and development needs, enabling personalized learning journeys.  

Then, staff members work on their personal learning & development assignments specifically tailored to address those identified needs either deeper into the role or work toward the next higher grade level, maximizing employee growth and engagement. This fosters a culture of continuous learning & development, where staff are encouraged to acquire new skills and advance their careers.  

Furthermore, our approach promotes shared responsibility between managers and employees for development, with managers actively supporting their team members’ growth by providing/identifying opportunities and staff taking ownership of their learning journey. 

Succession planning 

Organizations can build a strong leadership pipeline by applying an objective lens to succession planning. Standardized criteria assess employees’ readiness for promotion, ensuring that advancement decisions are based on merit and potential, not favoritism.  

Clear succession pathways and policies are established based on skills and competencies, providing staff members with a roadmap for career progression. This cultivates a talented pool of future leaders, ensuring the long-term sustainability of your organization.  

How CommunityTM can support your equity journey   

Putting these principles into practice may seem daunting, but Birches Group’s CommunityTM framework and tool can seamlessly guide your organization through the five-step approach from start to finish. This integrated platform provides the structure and resources you need to operationalize equity across all your HR processes. 

CommunityTM offers a range of solutions designed to support your equity journey: 

  • Centralized skills data. CommunityTM presents a central hub for managing all your skills data, enabling you to create a comprehensive skills inventory for your workforce and track staff skills development over time. This centralized system ensures that everyone is assessed against the same objective criteria. 
  • Objective assessment tools. With built-in assessment tools that utilize the same consistent framework, CommunityTM helps you evaluate skills and competencies objectively, minimizing bias and ensuring fair treatment.  
  • Data-driven insights. CommunityTM generates powerful data-driven insights that inform your decision-making across all HR functions. Identify skill gaps, track pay equity progress, and analyze workforce trends to make informed decisions that promote fairness and transparency. 
  • Support for key HR functions. CommunityTM offers the tools and resources to embed equity into every stage of the employee lifecycle, from recruitment and pay movement to learning & development and succession planning. 

By leveraging the power of CommunityTM, your organization can move beyond theoretical discussions of equity and take concrete action to build a fair workplace. With its integrated approach, objective assessment tools, and data-driven insights, Community™ empowers you to create an organization where every employee can thrive. 

What about performance? 

At this point, you might be wondering: “This all sounds great, but where does performance fit into this approach?” 

While our focus has been on building a foundation of equity through skills and competencies, we understand that performance is still a critical factor in employee development and motivation. Assessing skills and rewarding performance are separate but related pieces of the puzzle in retaining and motivating your workforce.  

Think of it this way: skills represent an individual’s growth in knowledge and experience, while performance reflects how effectively they use those skills to achieve results. Both are essential for a thriving organization. 

CommunityTM addresses this with a robust performance management system that offers a simple but comprehensive view of staff performance. This platform allows you to provide 360° feedback from various internal and external stakeholders. In addition, CommunityTM enables your organization to acknowledge and reward staff for their contributions, celebrating both those who meet expectations and those who exceed them, fostering a culture of appreciation and broad staff motivation.  

It’s important to emphasize that performance should be assessed solely for rewarding achievement. It should not be a factor in determining a staff member’s pay increase or promotion eligibility, as those decisions should be grounded in skills assessment. 

By keeping this distinction, you can ensure that your performance management system serves its purpose: to motivate employees and reward their contributions.  

Get in touch with Birches Group 

Achieving true equity across your HR processes requires a commitment to objectivity, transparency, and a unified approach. It demands a shift from ad-hoc arrangements to standardized processes, from subjective judgments to data-driven decisions. 

Birches Group is your trusted partner in navigating this journey. Our proven five-step approach and the CommunityTM platform provide the framework and tools you need to operationalize equity across your organization. 

Ready to create a workplace where every employee has a fair chance to thrive? Contact Birches Group today. Our team of experts is prepared to offer the guidance and support you need to make equity a reality. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

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WHY GETTING PAY AND BENEFITS RIGHT IS CRUCIAL FOR NGOs

Written by Bianca Valencia on . Posted in Resources.

Managing a workforce, especially compensation, presents significant challenges for many non-governmental organizations (NGOs). Unlike the private sector, many NGOs trail behind in having an established compensation philosophy and program. This gap hinders the ability of organizations to attract and retain the skilled staff necessary to achieve their mission, particularly in competitive labor markets like the United Kingdom (UK). 

Despite the desire to offer competitive pay and benefits, NGOs—particularly those reliant on government or donor funding—are under scrutiny to demonstrate good value. This kind of scrutiny requires responsible compensation management, not only for core jobs working in head offices but also for program staff operating in the field. Salaries must be set objectively based on the cost of labor rather than ad hoc or solely on the cost of living. 

To overcome this, NGOs must prioritize an integrated compensation approach. Competitive salaries and benefits packages help NGOs attract and retain skilled individuals passionate about their cause. 

This blog post explores the importance of equitable pay and benefits strategies that attract and retain talent, drive success, and maximize your NGO’s impact. 

The competitive NGO landscape

The UK’s NGO sector is highly competitive for talent. Skilled professionals, from program managers to fundraisers, have many organizations to choose from. NGOs must remain competitive, as these professionals are naturally drawn to organizations offering competitive compensation and benefits and demonstrating a strong alignment with their values. 

In this environment, NGOs can’t afford to lag. Pay equity and transparency are not just buzzwords but essential for recruitment and retention. Today’s workforce is increasingly aware of pay disparities and seeks employers who prioritize fair treatment and equal opportunities. Salary benchmarking plays a critical role in demonstrating this commitment. 

To attract and retain skilled talent, NGOs need to base compensation on the cost of labor in the market and benchmark against jobs of equivalent value. This approach ensures competitive salaries that reflect the true value employees bring to the organization. airness but motivates staff to develop their skills and contribute meaningfully. 

The significance of salary surveys

Salary surveys are invaluable for NGOs, ensuring they offer competitive and fair compensation. Such surveys provide objective, comprehensive data on market rates for comparable roles, enabling informed decisions about pay and benefits. Here is why they’re a helpful addition to your HR toolkit: 

  • Objective benchmarking. Salary surveys enable NGOs to compare their compensation packages against jobs of equivalent value in the market, ensuring competitive salaries that attract and retain talent. 
  • Defensible compensation. Data from salary surveys allows NGOs to justify salary decisions to staff, management, and donors, promoting transparency and accountability. 
  • Market insights. Salary surveys provide a broader market view than internal data, offering insights into emerging trends, regional variations, and sector-specific compensation. 
  • Gap analysis. Participating in salary surveys reveals areas where compensation may fall behind, including hiring rates, competitive salaries for specific grade levels, benefits, and more. 
  • Benefits competitiveness. Surveys like those from Birches Group often include data on benefits, allowing NGOs to assess their offerings and make necessary adjustments. 
  • Compliance with market practices. Using salary surveys helps NGOs align with sectoral standards and legal requirements. 
  • Proactive budgeting. Salary surveys help NGOs anticipate salary expenses and plan budgets effectively, ensuring financial sustainability. 
  • Trend analysis. Tracking salary data over time allows NGOs to stay ahead of changing market trends and adjust compensation strategies accordingly. 

Salary surveys provide a comprehensive and objective market view that your organization couldn’t easily obtain independently. They offer insights into gaps between your target position and the market, the competitiveness of your benefits, and adherence to best market practices. Salary surveys help you stay ahead of trends and assist with budgeting for your organization’s biggest expense—salaries. 

Final thoughts

In the NGO sector, getting pay and benefits right is paramount for attracting and retaining individuals who drive meaningful change. Prioritizing compensation allows teams to maximize their impact.

Take the first step: Assess your current compensation program, benchmark against sectoral standards using reliable salary surveys, and seek expert guidance. Birches Group provides NGOs with the most comprehensive compensation and benefits surveys dedicated to the development sector, including accurate and consistent job matching, salary data captured by grade level, and extensive benefits information.

We offer tailored compensation and benefits solutions to help your organization attract, retain, and empower talent worldwide. Contact your representative at Bond to learn how you can participate and access our surveys. Investing in your people is an investment in your mission, ensuring long-term sustainability and effectiveness in addressing critical social challenges.

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

EQUITY IN ACTION: IMPLEMENT FAIR PAY MANAGEMENT MECHANISMS

Written by Noel Madolid on . Posted in Resources.

In pursuing workplace equity, we’ve examined the critical steps: establishing equivalent worth, developing a job grading structure, utilizing comprehensive salary surveys, and implementing a well-defined salary scale. These foundational elements create the framework for fair pay. 

But the journey continues. Transitioning from establishing the framework to actively managing pay is where equity flourishes. 

It’s time to take the final step: implementing fair pay management mechanisms. This ongoing process ensures that your meticulously crafted pay structure remains relevant and equitable long-term. Without equitable management, even the most robust compensation program can falter, leading to pay disparities and inequities. 

This post examines the essential mechanisms for ongoing pay management, empowering your organization to cultivate a genuinely equitable and fair workplace. 

Why traditional pay progression fails to achieve equity 

Pay management mechanisms are the processes and policies that govern how your people move through your established salary ranges. They drive your compensation program, ensuring ongoing equity within your organization. 

However, traditional approaches to pay progression often miss the mark when it comes to fairness. Why? Let’s examine two common methods: 

  • Time-based steps. While clear, predictable, and easy to administer, this approach suffers from a critical flaw: everyone receives an increase regardless of performance. Someone exceeding expectations gets the same raise as someone barely meeting minimum standards. This can be incredibly demotivating for high performers and fails to recognize individual growth. 
  • Pay-for-performance or merit increases. This method aims to reward top performers with higher raises, but it, too, often falls short. Pay increases are frequently too small to truly differentiate meaningfully between performance levels. Additionally, basing salary adjustments solely on annual performance reviews is problematic. Performance can fluctuate year to year, meaning a one-time “good” year can lead to a permanent salary increase, even if performance later declines. 

Both approaches fail to create a truly equitable pay structure, lacking the flexibility and nuance to accurately recognize individual contributions and growth. This can lead to pay gaps, dissatisfaction and, ultimately, a less equitable workplace. 

To create a truly equitable pay system, organizations must move beyond outdated models and explore more objective, transparent, and equitable approaches to pay progression. 

A truly equitable pay management system hinges on transparency and clearly defined criteria for progression. This means establishing a clear and consistent pathway for employees to advance through the salary scale based on objective measures such as skills, competencies, and contributions aligned with their jobs and the organization’s mission. 

Think of it like a roadmap. Every employee should understand the route to progress within their role and have equal opportunity to reach their career goals. This fosters a sense of fairness but motivates staff to develop their skills and contribute meaningfully. 

Developing a system for staff progression through the salary scale 

Creating a transparent and fair system for salary progression is imperative for fostering a culture of equity. Here are key strategies to achieve this: 

Skills-based progression 

Implement a framework that objectively measures staff skills, linking it directly to pay progression. This means clearly defining the skills and competencies required at each level of the salary range and using standardized assessments to measure employee skills against these levels. Be transparent about how acquiring new skills or demonstrating increased expertise translates to salary increases or promotions. This approach ensures that pay progression is tied to tangible growth and development. 

Regular reviews and updates 

The market and your organization are constantly evolving. Regularly review and update your salary structure and progression system to demonstrate a commitment to fair pay. This allows you to maintain market competitiveness, address any internal pay disparities that may arise, and provide opportunities for employees to move through the salary range based on the growth of their skills and the impact of their contributions. 

Benefits of a structured progression system 

But why go to all this effort? Because a well-structured approach to pay movement offers significant benefits for both your staff and your organization. 

  • Increased transparency and trust. Employees understand how pay decisions are made, fostering a sense of fairness and trust in the organization. 
  • Enhanced motivation and engagement. Clear pathways for advancement motivate employees to invest in their development and contribute their best work. 
  • Reduced pay disparities and improved retention. Objective criteria minimize the risk of bias and discrimination in pay decisions, promoting equity and increasing employee satisfaction. 

How Birches Group’s Community™ Skills can help 

Developing and implementing fair pay management mechanisms can be challenging. But your HR team doesn’t have to go on this journey alone. 

At Birches Group, we believe that pay movement should be tied to the development and growth of staff’s skills and experience. As employees gain experience, they develop a deeper understanding of their role and accumulate the skills needed to help them be more effective and produce higher-quality work.  

Birches Group Community™ Skills provides a way to measure this experience. Organizations can use our framework and tool to structure their compensation systems, rewarding employees for growth and development within their roles, rather than solely relying on performance metrics. Organizations can link their compensation administration to the progression of skills in any number of ways, from assessing and setting the appropriate starting salary based purely on candidates’ skill levels during recruitment to managing pay movement within the salary range and tailoring learning and development assignments to guide staff development and career pathing. 

Contact Birches Group today 

Implementing fair pay management mechanisms and a structured progression system is not about ticking boxes. It’s about fostering a workplace where every employee feels valued, recognized, and rewarded fairly. By embracing the five-step approach to workplace equity, your organization can create a culture of transparency, trust, and opportunity. 

We understand that this journey can be complex. That’s why we encourage you to seek guidance from experts who can help you navigate the intricacies of building an equitable compensation program. 

Is your organization ready to achieve workplace equity? Contact Birches Group today. Our team of experienced consultants can provide the expertise and support you need. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

Equity in Action: Implement a Salary Scale

EQUITY IN ACTION: IMPLEMENT A SALARY SCALE

Written by Noel Madolid on . Posted in Resources.

Welcome back to our series on workplace equity! In our previous blog posts, we explored the foundational steps toward achieving a fair and equitable work environment, from establishing equivalent worth and developing a grading structure to utilizing salary surveys. We emphasized the importance of transparency and communication in building trust with your staff. 

Now, it’s time to take the next significant step in your equity journey: implementing a salary scale. While establishing clear job grades and salary ranges is essential, it’s only the beginning. A salary scale provides a structured framework for your compensation, ensuring consistent and fair pay across your organization. It acts as a roadmap for staff progression within those ranges, ensuring that growth and compensation are aligned in a way that’s both fair and motivating.  

In this post, we’ll discuss how implementing a well-defined salary scale can be a vital tool in your equity journey. We’ll explore the benefits of having pay ranges, guide you through developing a salary scale that supports your equity goals, and offer practical tips for successful implementation. 

Why a salary scale matters 

The salary scale defines the minimum, midpoint, and maximum pay for each role within an organization. The salary scale is the most important document in human resources, providing valuable insights into the organization’s structure, job grading, and the value placed on different grade levels. The overlap between grades also illustrates how staff can progress through the ranks. 

Think of a salary scale as a roadmap for compensation. This roadmap guides both employers and employees, ensuring everyone understands the organization’s compensation philosophy and policy.  

For employers, a clearly defined salary scale offers numerous advantages, including: 

  1. Budgeting and forecasting. Salary scales facilitate accurate budgeting and forecasting by providing a clear picture of salary costs. This predictability allows for better financial planning and resource allocation. 
  1. Transparency and trust. With clearly defined pay ranges, organizations promote transparency and build trust with their employees. Everyone understands the compensation philosophy and how their pay is determined, reducing the potential for confusion or resentment. 
  1. Legal compliance. Having a salary scale ensures compliance with equal pay regulations and lessens the chances of pay discrimination. By establishing clear criteria for pay, organizations minimize legal risks and promote fair treatment. 
  1. Talent attraction and retention. A competitive salary scale helps to attract talent and retain existing staff. When employees know their employer is ensuring their compensation is fair and competitive, they are more likely to stay with the organization and contribute to its success. 
  1. Pay movement based on skills growth. As staff develop their abilities and expertise, their value and contributions to the organization increase, and their compensation can reflect that growth. This framework ensures fairness and equity by recognizing employees for continuously improving and developing within their roles. 

Salary scales also provide significant value for employees: 

  1. Clarity and understanding. Employees gain a clear understanding of the salary range for their role and how their pay is determined. This transparency fosters trust in the compensation strategy. 
  1. Fairness and equity. A structured salary scale ensures pay is based on objective criteria, such as the equivalent worth of the job (job evaluation) and referencing external labor market conditions (salary benchmarking). This helps eliminate biases and promotes a sense of fairness. 
  1. Career growth. Salary scales provide a roadmap for career progression. Employees can see the potential for salary increases as they gain experience deeper into the range, or take on a higher level of responsibility and scope and advance within the organization. 
  1. Motivation. Knowing their pay is linked to skills growth motivates staff to perform well, seek development opportunities, and improve their capabilities. 
  1. Organizational culture. A structured pay scale provides employees with a sense of security and stability. 

Developing an equitable salary scale 

Developing an effective and equitable salary scale requires careful planning and execution. It involves creating a tool that reflects your organization’s values, ensures internal cohesion, and remains competitive within the labor market. Here are the key steps: 

  1. Establish a job structure. A clear job structure shows how jobs are organized and ranked based on their purpose, scope, and placement within the organization. 
  1. Develop a compensation philosophy. Your compensation philosophy outlines your approach to choosing comparable organizations, setting your desired market position (lead, match, or lag), and benefits package. 
  1. Benchmark salaries against the market. Assess your organization’s competitiveness by benchmarking your jobs against similar grade levels in the labor market. This step involves comparing your internal pay grades and salaries for specific roles with those offered by similar organizations. 
  1. Define your composition and position. Define your target market position and the criteria for selecting your target comparator organizations. 
  1. Tailor job levels. Adopt a tailored approach that reflects expectations around employment and opportunities for each job level. 
  1. Design your compensation package from a ‘total compensation’ perspective. In most markets around the world, especially in developing markets, benefits make up a significant portion of compensation. To truly be competitive in the markets you’re trying to reach, analyze your total compensation package to include cash and in-kind benefits that are common practice in those markets. Consider locally mandated benefits, market practices, and benefits that promote desirable behaviors. 

Implementing and maintaining your salary scale 

Now that you’ve developed your salary scale, the next step is to communicate your analysis to management and prepare to communicate the changes to your staff. 

Laying the foundation 

Before introducing the salary scale, it’s best to establish solid groundwork. Laying the foundation for your salary scale includes taking the following measures: 

  • Secure management buy-in. Clearly articulate the rationale behind having an up-to-date salary scale. Highlight the issues it can address, such as pay inequities, challenges in attracting talent, and potential legal risks. Underscore how the salary scale will contribute to a more equitable and competitive compensation structure, ultimately benefiting the organization as a whole. 
  • Establish a robust job evaluation process. Ensure that your job evaluation process is in place before developing your salary scale, as it provides the basis for slotting jobs accurately within the structure. 
  • Ensure transparency. Openly communicate how the new salary scale will be implemented. Outline the timelines, phasing plans, and any potential impact on existing compensation arrangements to manage expectations.  

Rolling out the scale 

Once the groundwork is laid, the focus shifts to effectively rolling out the new scale and ensuring its smooth integration into your compensation strategy: 

  • Equip managers for effective communication. Managers play an important role in communicating the changes to their teams. Provide them with the necessary resources, such as talking points, FAQs, and training on handling sensitive questions. Doing so will help ensure a smooth transition and minimize potential misunderstandings or concerns. 
  • Link skills growth with salary progression. Clearly define the link between growth in knowledge and experience and salary progression within the scale. Establish transparent expectations and criteria for advancement, ensuring employees understand how their growth in skills can influence their compensation growth. 

Maintaining and reviewing the scale 

Implementing your salary scale is not a “set it and forget it” exercise. Continuous maintenance and review are crucial to ensure its ongoing effectiveness and relevance. This ongoing process includes: 

  • Regular reviews and updates. Markets are dynamic, and your salary scale should be, too. Review and revise your scale annually to stay competitive. Consider factors such as labor market data and industry trends to ensure your compensation remains aligned with the labor market. 
  • Conducting pay equity audits. Regularly conduct pay equity audits to identify and address any potential gaps or inconsistencies within the salary scale. This should be a continuing process to ensure the scale remains fair, effective, and compliant. 

Partner with the experts at Birches Group 

Developing, rolling out, and maintaining your salary scale can be complex. While the tips and best practices outlined above provide a solid starting point, navigating the intricacies of compensation management often requires specialized expertise. This is particularly true when it comes to implementing fair pay management mechanisms, which is the focus of our final blog post in our Equity in Action series. 

Successfully integrating fair pay practices into your compensation strategy calls for a deep understanding of legal frameworks, labor market dynamics, and ethical considerations. This is where partnering with experienced compensation professionals can make all the difference. 

Our team of experts specializes in: 

  • Pay equity audits. We conduct comprehensive audits to identify and address any gender, race, or other pay gaps, ensuring your organization meets legal requirements and promotes fairness. 
  • Salary scale design. We design robust and competitive salary structures tailored to your organization’s needs and market benchmarks. 
  • Compensation strategy consulting: We provide guidance on developing and implementing effective compensation strategies. 

Birches Group’s consultants have years of experience designing salary scales for different types of organizations. Download our comprehensive e-book, Strategy, Structure, and Synthesis, to learn more.  

Ready to create a fair and equitable compensation program? Contact Birches Group today for a strategy consultation. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

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EQUITY IN ACTION: UTILIZE SALARY SURVEYS

Written by Noel Madolid on . Posted in Resources.

In our ongoing blog series on workplace equity, we’ve explored the importance of fair and just compensation practices. We’ve discussed equity, which means paying employees fairly based on their skills and contributions. We’ve introduced a five-step framework for achieving equity. This framework highlights the significance of establishing equivalent worth in developing a grading structure.

However, achieving workplace equity goes beyond internal alignment. It’s about ensuring that your organization’s compensation is competitive within the labor market. This is where salary surveys become valuable.

Building the foundation with a consistent approach

To make sure you’re paying your employees fairly, we recommend using a consistent approach to evaluating jobs. It is best to implement a job evaluation methodology that aligns with the job matching applied in the salary survey.

Many organizations use a job evaluation approach that differs from what was applied in the surveys they use. But doing so makes it difficult to ensure the accuracy of the survey results, which could impact how pay is managed.

The role of salary surveys in workplace equity

Salary surveys offer a window into the labor market, providing insights into current compensation trends and benchmarks. Using salary survey data, organizations can ensure fair pay that is aligned with the market.

These surveys are comprehensive reports that collect and analyze data on compensation practices across a range of jobs, sectors, and geographical locations. The data includes details about base salaries, bonuses, cash and in-kind benefits, and non-salary and after- service benefits.

By providing an objective, real-time snapshot of prevailing market rates, salary surveys enable organizations to  

  • Evaluate internal pay structures against the labor market and identify potential pay gaps.
  • Understand the market forces influencing compensation, enabling informed decisions about pay practices.
  • Offer competitive compensation packages that attract and retain talent, as well as align with their Employment Value Proposition (EVP).

Ultimately, salary surveys help inform organizations in developing their compensation strategies that foster equity and support their overall objectives.

Aligning salary surveys with internal grading structures

In previous blog posts, we discussed how grading structures—categorizing jobs based on value and complexity— establish consistent pay practices within your organization. Each job grade within this structure is associated with a specific salary range.

Salary survey data is critical in informing the design and ongoing update of these structures. By referring to labor market data, your organization ensures that its compensation remains aligned with prevailing trends, essential for promoting equity.

Utilizing salary surveys to inform pay ranges

Once you have aligned your job grades with the market, use survey data to inform your organization’s compensation strategies for establishing appropriate pay ranges for each grade. These pay ranges typically include a minimum, midpoint, and maximum.

When setting pay ranges, consider:

  1. Target market position. What is your organization’s desired percentile ranking compared to the market?
  2. Target market composition. With which specific sectors and organizations does your organization compete for talent?

Because the labor market evolves, your organization needs to regularly review and update these pay ranges based on the latest market data. This ensures your compensation packages remain competitive and attractive.

Best practices for utilizing salary surveys

Selecting and using the right salary surveys is the key. Here are a few best practices to keep in mind:

  • Choose reputable and relevant surveys. To get good data, make sure the surveys use a good sample of employers in your target market and are done by credible organizations. Consider the survey methodology, job matching and data collection process, and the quality of comparators. Ensure the survey fully captures employer practices on salaries and benefits. This is especially important in developing markets where benefits can be a significant part of totalcompensation.
  • Analyze and interpret survey data carefully. Don’t just rely on the raw figures. Understand the data within the context of your organization’s specific needs and goals.
  • Use multiple surveys. To gain a broader perspective and validate your findings, relying on multiple salary surveys from different providers is often helpful.

Tapping Birches Group for labor market data

As we’ve seen, salary surveys are an indispensable tool for promoting equity in compensation. By making the most of salary survey data, organizations can determine if their pay practices are fair and aligned with the labor market.

At Birches Group, we offer comprehensive compensation consulting and salary survey data to help organizations achieve pay equity. Our team of experts can guide you through survey participation, data analysis, and the development of a compensation strategy that fosters equity and supports your organization’s goals. Contact us today to learn more.

Coming next

In the next installment of our Equity in Action series, we’ll walk through developing and implementing pay ranges. We’ll show you how to define and manage these ranges within your internal grading structure to help your organization achieve pay equity.

In the meantime, if you have any questions about workplace equity, please don’t hesitate to reach out to Birches Group. We’re here to support your journey toward a more equitable workplace.

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

EMPLOIS, GRADES, TITULAIRES : COMPRENDRE LES LIMITES DES DONNÉES D’ENQUÊTE ET COMMENT EN ÉVITER LES PIÈGES

Written by Bianca Valencia on . Posted in Uncategorized.

Les enquêtes salariales sont un outil important pour les ressources humaines. Les organisations ont besoin de ces enquêtes pour gérer et maintenir les rémunérations de manière adéquate chaque année. Toutefois, les méthodes d’enquête peuvent varier considérablement d’un fournisseur à l’autre, notamment en ce qui concerne les informations collectées, la méthode d’appariement des postes et le traitement et la présentation des données relatives à l’employeur.

Avant de décider quelles données d’enquête utiliser, il est essentiel que les praticiens des ressources humaines se familiarisent avec le type d’informations que chaque enquête fournit, la méthodologie qui sous-tend l’analyse et les limites qui accompagnent chaque approche. Voici quelques points à garder à l’esprit pour aider les organisations à éviter les erreurs typiques en ce qui concerne les enquêtes salariales :

  • Les limites liées à l’utilisation des données sur les emplois – dans notre article intitulé « Mesurer la position sur le marché », nous avons expliqué que l’on a accordé trop d’importance à certaines professions, simplement parce qu’elles sont considérées comme des « emplois en vogue ». Mais la variance des professions n’est pas aussi importante qu’on le pense, surtout lorsqu’on se penche sur les enquêtes salariales.  En effet, lorsque vous mettez à jour votre échelle salariale, vous mettez essentiellement à jour vos niveaux de grade, et les niveaux de grade sont génériques, ils ne sont pas basés sur les professions. Les données relatives aux emplois peuvent constituer une référence supplémentaire utile pour approfondir les données du marché. Mais il est important de noter que ce ne sont pas ces données qui influencent l’échelle des salaires, mais les données relatives aux niveaux de grade.
  • Les limites liées à l’utilisation des données sur les titulaires – nous avons mentionné dans plusieurs de nos articles précédents à quel point les données sur les personnes en place peuvent être trompeuses lorsqu’elles sont utilisées comme référence pour les données d’une enquête. De nombreux employeurs pensent que si une enquête salariale fait état des salaires réels des titulaires, les données du marché sont en quelque sorte perçues comme plus « exactes ». Au Birches Group, nous pensons que les données sur les échelles de salaires, et non sur les titulaires, offrent une vision plus stable et plus réaliste du marché du travail. Les salaires des titulaires sont basés sur la personne et dépendent fortement des qualités de l’individu qui occupe ce poste. Lorsque l’on travaille avec les salaires des titulaires, il est courant de trouver des valeurs aberrantes qui faussent considérablement les données globales du marché parce que leurs salaires individuels sont influencés par d’autres facteurs distincts du poste. Mais lorsque les échelles salariales deviennent la référence, cela donne une image plus précise de l’évolution du marché et sert de bornes qui empêchent les valeurs aberrantes dans l’analyse.
  • Les limites liées à l’utilisation du seul salaire de base – certains employeurs, lorsqu’ils étudient les données d’une enquête salariale, ont tendance à fonder leur analyse sur les seules informations relatives au salaire de base. Cette approche pose problème car, sur la majorité des marchés du travail dans le monde, le salaire de base n’est qu’une composante de la rémunération réelle d’un employé. Pour être considéré comme un employeur de choix, il faut prendre en compte l’ensemble des avantages sociaux, qu’ils soient en espèces ou en nature, ainsi que les pratiques du marché en matière d’avantages non salariaux, tels que la retraite, les soins médicaux, etc. Sur certains marchés, les avantages sociaux ont un impact important sur le recrutement et la fidélisation. Dans d’autres pays, certains avantages sont obligatoires, d’autres sont culturels, d’autres encore répondent à des difficultés locales.

Birches Group mène des enquêtes sur les rémunérations et les avantages sociaux dans plus de 150 pays à travers le monde. Notre approche multisectorielle est conçue pour les marchés en développement à forte croissance, où les principaux employeurs déterminent les tendances et les pratiques du marché local. Nous recueillons des données dans une perspective de rémunération totale, car dans nombre de ces marchés, le salaire de base n’est qu’une partie de la réalité. En outre, comme les marchés en développement sont volatils, nos enquêtes utilisent les données relatives aux échelles salariales afin de fournir à nos participants une vision plus précise du marché, liée à l’objectif du poste et non à son titulaire. Enfin, nos enquêtes sont mises à jour trois fois par an, en avril, juillet et octobre, ce qui garantit à nos clients des données actualisées à chaque fois. Contactez-nous pour en savoir plus sur notre enquête sur les rémunérations et les avantages sociaux dans votre pays.

Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz

Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.

regularly participating in salary surveys

POURQUOI LA PARTICIPATION RÉGULIÈRE AUX ENQUÊTES SALARIALES EST VITALE POUR VOTRE ORGANISATION

Written by Bianca Valencia on . Posted in Uncategorized.

Définir une rémunération compétitive n’est pas un jeu de devinettes, c’est une stratégie. Mais sans données actualisées sur le marché du travail, vous risquez de sous-payer ou de surpayer les talents, de susciter le ressentiment ou d’épuiser les ressources.

Les enquêtes salariales sont vos points de repère. Ces outils dévoilent les tendances du marché et vous aident à établir des rémunérations justes et éclairées qui attirent les meilleurs talents, stimulent le moral et créent une excellente image de marque pour l’employeur. En participant régulièrement à des enquêtes salariales, votre organisation obtient une vue d’ensemble du marché du travail et une perspective plus large qui vous permettent de prendre des décisions informées en matière de rémunération.

En participant chaque année à des enquêtes salariales, vous investissez dans l’équité et dans les pratiques salariales fondées sur des données. Même si votre organisation n’a pas encore besoin d’une révision salariale, la participation à une enquête salariale annuelle vous permet de vous tenir au courant des tendances sur le marché du travail et d’établir un budget adéquat lorsque les salaires doivent être mis à jour. 

Obtenez des informations sur les pratiques salariales compétitives et assurez votre place en tant qu’employeur de choix. Cet article de blog vous guidera à travers l’importance des enquêtes salariales et les avantages d’une participation régulière. Laissez-nous tracer le chemin de votre organisation vers la clarté en matière de rémunération.

Comprendre les enquêtes salariales

Avant d’aborder les avantages, il convient de simplifier le concept.

Les enquêtes salariales permettent de déterminer les tendances en matière de rémunération dans les différents secteurs ou sur les marchés du travail. Ces enquêtes collectent des données sur une série de facteurs, notamment le salaire de base, les primes et les avantages sociaux et les analysent afin de mettre en évidence des points de référence utiles pour différentes fonctions et différents niveaux d’emploi.

Les informations tirées de ces enquêtes sont inestimables, car elles permettent à votre organisation de connaître sa position sur le marché et d’apporter les ajustements nécessaires à sa stratégie de rémunération.

En participant régulièrement à des enquêtes salariales, vous vous assurez également que vos données sont toujours à jour. Cela vous permet de suivre les tendances du marché et de réagir rapidement aux changements. En outre, ces enquêtes fournissent une vue globale des rémunérations dans le secteur, ce qui permet à votre organisation d’élaborer une stratégie de rémunération compréhensive et compétitive.

Utiliser efficacement les enquêtes salariales

Pour pouvoir utiliser effectivement les données fournies par les enquêtes salariales, il convient de faire un pas en arrière et de se poser une question essentielle : “Qui sommes-nous en tant qu’employeur ?”. La réponse façonne votre Employee Value Proposition (EVP)* et définit votre position unique sur le marché du travail. Celle-ci englobe deux aspects essentiels :

  1. La composition du marché cible. Qui sont vos concurrents en matière de recrutement ? Identifiez les entreprises dont la taille, le secteur d’activité et le marché sont similaires et qui serviront de comparateurs pertinents dans vos enquêtes.
  2. Position sur le marché cible. Où voulez-vous vous situer en termes de compétitivité salariale ? Voulez-vous vous situer dans la moyenne du marché, attirer les meilleurs talents avec un salaire plus élevé, ou être prudent sur les coûts avec un salaire inférieur à la moyenne ?

Les enquêtes salariales ne sont qu’une boussole. Elles fournissent des données très utiles, mais c’est votre politique de rémunération qui détermine vos décisions.

  1. Utiliser des critères cohérents pour les comparateurs. Utilisez toujours les mêmes facteurs pour sélectionner les comparateurs, ce qui garantit des comparaisons précises et fiables.
  2. Trouver le juste milieu. Identifiez votre percentile cible en fonction de votre EVP. Souhaitez-vous faire partie des 10 % les plus performants pour attirer les employés les plus performants, ou vous sentez-vous à l’aise dans la médiane pour pouvoir gérer les coûts ?
  3. Aligner l’EVP. Concevez vos pratiques de rémunération en fonction de votre EVP, en offrant des avantages et des structures salariales qui correspondent au vivier de talents que vous recherchez.
  4. Adapter la rémunération en fonction du marché. Tenez-vous informé des tendances du marché et des offres des concurrents révélées par les enquêtes salariales. Utilisez ces données pour apporter des ajustements éclairés à votre système de rémunération, y compris le salaire de base, les primes et les avantages sociaux.

En fin de compte, votre budget de rémunération et votre position sur le marché cible sont les principaux moteurs de votre structure salariale. Les enquêtes salariales constituent un outil précieux pour calibrer vos offres, rester compétitif et attirer les talents dont vous avez besoin.e your offerings, stay competitive, and attract the talent you need. 

Récolter les fruits de la participation régulière

La participation aux enquêtes salariales n’est pas qu’une simple case à cocher ; c’est un investissement dans la réussite de votre organisation. Une participation fréquente aux enquêtes salariales offre de nombreux avantages :

Le benchmarking compétitif

Pour rester compétitif sur le marché du travail, vous devez savoir comment votre rémunération se situe par rapport à celle des meilleurs. En participant régulièrement à des enquêtes salariales, vous pouvez:

  • Identifier les lacunes. Une fois que vous avez déterminé le niveau de compétitivité que vous souhaitez atteindre sur le marché que vous avez choisi, les enquêtes peuvent vous aider à mettre en évidence les domaines dans lesquels votre rémunération est inférieure, ce qui vous permet d’ajuster les stratégies de votre organisation.
  • Connaître votre position sur le marché. Comprenez comment vos salaires se comparent aux moyennes du secteur et aux leaders du marché. Êtes-vous en tête du peloton ou à la traîne ?
  • Rester à l’avant-garde. Prévoyez les tendances en matière de rémunération (salaires et avantages sociaux) et adaptez de manière proactive la rémunération totale afin de conserver les meilleurs talents et d’attirer de nouvelles recrues.

En utilisant les informations fournies par les enquêtes salariales, vous pouvez vous assurer que votre organisation reste un employeur attractif, ce qui vous permettra de gagner la bataille pour les talents.

Equitable et juste

Participer régulièrement à des enquêtes salariales contribue à promouvoir l’équité et la justice salariales. En profitant des enquêtes salariales, vous pouvez :

  • Combler l’écart de rémunération. L’équité consiste à s’assurer que vous payez pour le rôle et non pour la personne. Éliminez les écarts de rémunération et garantissez l’équité interne. Utilisez les données des enquêtes salariales plutôt que l’historique des salaires de la personne pour informer les politiques de gestion des rémunérations, afin de créer un lieu de travail où tout le monde est récompensé équitablement.
  • Élaborer une structure plus équitable. Utilisez des informations fondées sur des données pour ajuster votre échelle salariale, en garantissant l’équité et l’alignement sur les normes du secteur.
  • Instaurer la confiance et la transparence. Une communication ouverte et des décisions salariales fondées sur des données favorisent une culture de la confiance et du respect, ce qui conduit à un environnement de travail plus positif.

Investir dans des enquêtes salariales, c’est investir dans votre personnel et dans la réussite de votre organisation. En garantissant une rémunération équitable et transparente, vous pouvez constituer une main-d’œuvre plus motivée, plus engagée et plus inclusive, ce qui se traduit par des résultats positifs pour tout le monde.

Prendre des décisions éclairées en matière de rémunération

Les enquêtes salariales peuvent être votre secret pour élaborer une stratégie de ressources humaines gagnante qui attire, retient et libère tout le potentiel de votre personnel. 

En participant chaque année à des enquêtes salariales, vous pouvez améliorer vos pratiques de rémunération en vous permettant de regarder au-delà des chiffres. Si le salaire est essentiel, les enquêtes salariales peuvent vous aider à évaluer ce que les salariés valorisent – des modalités de travail flexibles, des possibilités d’apprentissage et de développement, ainsi que des programmes de reconnaissance et de récompense. 

Concevoir des programmes de rémunération qui vont au-delà du salaire. Si la rémunération est le principal attrait de l’entreprise, sur certains marchés, des avantages sociaux adaptés peuvent également contribuer à maintenir votre avantage concurrentiel.

Les enquêtes salariales sont une mine d’informations et d’analyses qui ne demandent qu’à être découvertes. En exploitant leur puissance, vous pouvez élaborer une stratégie de rémunération qui attire et conserve les meilleurs talents.

Attirer et retenir les meilleurs talents

Attracting and keeping staff needs a data-driven, strategic approach. Gone are the days of generic offers Attirer et conserver le personnel nécessite une approche stratégique fondée sur des données. L’époque des offres génériques et des solutions uniques est révolue. Les organisations doivent cultiver l’EVP convaincant qui trouve un écho auprès des talents qualifiés. 

  • Devenir un employeur de choix. Proposer des enquêtes salariales compétitives et des avantages sociaux attrayants, fondés sur des données d’enquête fiables, attire les meilleurs talents et renforce votre image de marque et votre réputation d’employeur.
  • Personnaliser vos stratégies. Utilisez les résultats des enquêtes pour comprendre les attentes de votre public cible en matière de rémunération et adaptez vos stratégies de recrutement et de fidélisation en conséquence. 
  • Prévoir et prévenir le taux de rotation. Identifiez les risques potentiels en comparant vos rémunérations à celles proposées par les leaders du marché pour des postes similaires. En ajustant votre offre en fonction des données les plus récentes, vous pouvez maintenir l’engagement et la motivation de vos employés.

L’exploitation d’enquêtes salariales solides n’est pas seulement une bonne pratique, c’est un avantage concurrentiel. Comprendre les taux du marché vous permet d’élaborer des programmes de rémunération convaincants qui attirent les candidats ciblés et garantissent l’équité interne. Le résultat ? Une plus grande satisfaction des employés, une réduction du taux de rotation et une main-d’œuvre plus dynamique.

De l’information à l’action

La participation régulière à des enquêtes salariales vous permet de prendre des décisions éclairées en matière de rémunération, d’attirer et de retenir les meilleurs talents et de cultiver une organisation saine et performante. Ne passez pas à côté de cette ressource inestimable. Birches Group fournit des données sur le marché du travail dans plus de 150 pays et nous sommes là pour vous aider. Inscrivez-vous dès aujourd’hui à nos enquêtes salariales complètes et assurez le succès futur de votre organisation ou prenez contact avec nous pour en savoir plus.

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

High Inflation

ON THE HORIZON: INFLATION PROJECTIONS FOR 2024 ACROSS THE GLOBE

Written by Kai Donesa on . Posted in Resources.

Inflation has dominated economic conversations in recent years. As we approach the second half of 2024, this bulletin offers insights into what to expect on the inflation front worldwide. To help you prepare for the next few months, we’ll explore expert projections, examine critical trends, and discuss the potential implications for organizations. 

Global inflation is on the downturn, but not out 

After years of historically high inflation, many analysts are cautiously optimistic about 2024. Inflation has been cooling worldwide, raising hopes of a soft landing this year. While the sting of rising prices may not vanish entirely, major institutions forecast that the global inflation rate is on a gradual downward slope.  

The International Monetary Fund (IMF) predicts global headline inflation to fall to 5.9% in 2024, down from an estimated 6.8% in 2023. This decline is attributed to various factors, including easing supply chain pressures and higher interest rates. 

But the path to price stability may be bumpy. JP Morgan economists warn that core inflation, which excludes volatile food and energy prices, could remain sticky at around 3% globally in 2024.  

Overall, inflation will likely ease faster than expected. While it is estimated to remain above pre-pandemic levels, a significant decrease from 2023 is anticipated.  

It is important to note that the global average masks significant differences between countries and regions. Advanced economies are expected to see faster disinflation, with inflation falling by 2.0 percentage points to 2.6%. For emerging and developing economies, inflation is projected to decline by just 0.3 percentage points to 8.1%. 

High-inflation economies 

While growth remains a priority, high inflation will be a pressing concern for many countries in 2024. The IMF has identified 20 economies across regions likely to experience significant price increases. 

Many of the world’s highest-inflation economies are concentrated in Sub-Saharan Africa, the Middle East, and Central Asia. This vulnerability can be attributed to dependence on volatile commodity prices, conflicts disrupting supply chains, and currency depreciation. These issues create a perfect storm for rising prices, squeezing household budgets and hindering economic stability. 

Three volatile economies to monitor 

Some economies face a delicate balancing act. It’s crucial to keep an eye on developments in Venezuela, Zimbabwe, and Sudan, which are projected to have the highest percentage change in annual inflation this year. The potential for significant volatility in these economies is high. 

Venezuela 

230% inflation, widespread dollarization, US oil industry sanctions 

Venezuela, a Latin American country rich in oil reserves, faces a projected inflation rate of 230%—the highest in the world. But, according to El Pais, experts believe inflation in Venezuela is on a downward trend. In April 2024, the IMF notably lowered its projected inflation rate in Venezuela to 160%.  

Capital Economics reports that several factors are behind Venezuela’s inflation plunge. These factors include widespread dollarization, steps to liberalize the economy, a rise in oil exports, and an easing of US sanctions on the oil industry since October 2023. 

However, Venezuela’s economic outlook in the near term depends on whether US sanctions (for repressing political opposition and alleged criminal activity) are further relaxed or reimposed in April 2024. 

What does our market monitoring reveal? 

Our 2024 Market Monitor reports paint a picture of Venezuela navigating a volatile market. The reports consistently place the Latin American nation at Level Five on a six-level volatility scale. 

Level Five signifies a labor market that heavily uses hard currencies. Salaries are widely denominated in US Dollars or Euros, and staff can legally hold bank accounts in these currencies. This dollarization protects against inflation but highlights Venezuela’s challenges in stabilizing the Bolivar, its local currency.

What steps do we recommend? 

Given Venezuela’s status at Level Five on our Market Monitor, we recognize the challenges faced by organizations operating in the country. Our salary surveys also show that employers have adopted the practice of denominating salaries in US Dollars or Euros, reflecting a lack of confidence in the Venezuelan Bolivar. 

In countries with Level Five volatility, the solution often sought is to change the local currency scale into one denominated in a major hard convertible currency. While this might seem straightforward, many factors must be considered before making such a big switch. 

The most significant factor is assessing the prevailing labor market conditions. This involves evaluating the usefulness of local money in daily life. Is the local currency still primarily used for trading goods and services? If so, every effort should be made to maintain a pay structure based on local currency and to monitor and update this pay structure actively. 

Zimbabwe 

190.2% inflation, currency depreciation, newly introduced currency 

Zimbabwe, a nation in Sub-Saharan Africa with immense mining potential, has been overshadowed by a persistent struggle with high inflation and currency devaluation. 

The IMF projects Zimbabwe’s inflation rate to reach 190.2%. In April 2024, this forecast was significantly adjusted to 602.6%. According to Lloyds Bank’s International Trade Portal, inflation increased amidst currency depreciation, worsened by the scarcity of foreign currency in the country.  

Economists note that Zimbabwe’s financial woes are deeply entrenched. Over the years, Zimbabwe has grappled with currency instability, introducing various currencies. Abandoned in 2009 and reintroduced a decade later as the Real Time Gross Settlement Dollar, the Zimbabwean Dollar, lost over 70% of its value on the official foreign exchange market since January 2024, making it one of the world’s worst-performing currencies, according to Associated Press. In addition, the US Dollar is used in more than 80% of transactions and is favored over the volatile Zimbabwean Dollar.  

A recent development to watch is the introduction of the Zimbabwe Gold (ZiG), the country’s sixth attempt at a new currency since 2008. Launched in April 2024, the ZiG replaces the Zimbabwean Dollar to combat high inflation and restore confidence in the financial system. However, its effectiveness in curbing inflation is yet to be seen. 

What does our market monitoring reveal? 

Our monitoring of the Zimbabwean labor market and foreign exchange rates in recent months reveals a vital feature of the economy: dollarization. This is reflected in the country’s consistent ranking at Level Five on our volatility scale. 

Foreign currencies, such as the US Dollar and Euro, are widely used at this level. Salaries are commonly denominated in these currencies, and staff can legally hold Dollar or Euro bank accounts. 

What steps do we recommend? 

Zimbabwe’s Level Five status on our Market Monitor presents challenges similar to Venezuela’s. Our recent salary surveys show a widespread shift towards US Dollar-denominated salaries, highlighting the declining trust in the local currency. 

A Level Five designation signifies a highly volatile labor market, often prompting organizations to consider a switch to a hard currency like the US Dollar. However, such a transition requires careful consideration of several factors. 

The most critical factor is the usability of the local currency in daily transactions. Does it remain the primary currency for buying goods and services? If so, prioritizing a pay structure based on the local currency with regular monitoring and adjustments is vital. 

Sudan 

127.3% inflation, currency depreciation, continuing armed conflict 

Sudan, a country situated in Sub-Saharan Africa, has long been an agricultural hub. Additionally, the nation is endowed with natural resources, including gold and oil, which hold significant economic potential. 

The IMF projects Sudan to face an inflation rate of 127.3% in 2024. In April this year, this projection was slightly decreased to 114.6%. This severe inflation is driven by multiple factors, including political instability, economic mismanagement, and the depreciating value of the Sudanese Pound by at least 50%.  

The primary driver of Sudan’s inflationary spiral is the power struggle between Sudan’s two leading generals and their respective military factions since April 2023. This conflict has led to widespread instability, severely hampering economic activities and disrupting supply chains.  

What does our market monitoring reveal? 

Our monitoring of foreign exchange rates in Sudan reveals a volatile economic environment. In early January 2024, the market was characterized by rapidly evolving conditions at Level Three, indicating significant exchange rate movements of over 40% within six months. This suggested that the Sudanese pound was already experiencing notable fluctuations. 

By January 15, the conditions had shifted to Level Four, signaling a sudden, unexpected social or economic event. The currency underwent severe devaluation of 50% or more within six months, reflecting a drastic and rapid decline in the Sudanese pound’s value. Responses from salary survey comparators in Sudan have also been disjointed and unclear, reflecting a chaotic economic environment with no clear or consistent strategy to address the crisis. 

What steps do we recommend? 

Organizations operating in Sudan should monitor economic indicators closely, particularly currency devaluation. Over the past six months, Sudan’s currency devaluation has reached 65.1%. Nevertheless, many organizations still denominate salaries in the local currency.  

It is critical to regularly review salaries to manage them effectively in volatile environments like Sudan. Using data from the latest Sudan salary survey, organizations should create a focused group of comparators that includes market leaders in salary practices, employers with adaptable pay policies, and companies that predominantly pay salaries in the Sudanese Pound. 

Lastly, update your organization’s salary scales three times a year based on your focused group of comparators. This approach involves trimestral adjustments to the pay scale, forecasting currency movements for the upcoming quarter, and implementing a stabilization allowance alongside the revised salaries. 

How Birches Group’s Market Monitor can help 

Stay informed about volatile economies worldwide and identify potential disruptions before they escalate. Sign up to receive our Market Monitor, a PDF report delivered to your inbox every two weeks. Our team examines labor market conditions and economic indicators across over 150 countries, helping you spot countries that require closer attention.  

Get your free copy of the Market Monitor today, available in English, Spanish, and French. 

Reach out to Birches Group today 

Does your organization have a Special Measures Policy for unforeseen events like hyperinflation? Crafting such a policy requires expertise. Our consultants can guide you through the process, ensuring your policy is effective. Contact us to discuss your specific needs and get started on creating a Special Measures Policy that fits the local conditions of your markets. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

regularly participating in salary surveys

WHY REGULARLY PARTICIPATING IN SALARY SURVEYS IS VITAL FOR YOUR ORGANIZATION

Written by Kai Donesa on . Posted in Resources.

Setting competitive pay is not a guessing game—it is a strategy. But without up-to-date labor market data, you risk underpaying or overpaying talent, breeding resentment, or draining resources.  

Salary surveys are your guideposts. These tools unveil market trends, helping you set fair and informed compensation that attracts top talent, boosts morale, and builds a stellar employer brand. Regularly participating in salary surveys gives you a bird’s-eye view of the labor market—a broader perspective to make informed pay decisions. 

Invest in fairness and data-driven pay practices by joining salary surveys every year. Participating annually—even if your organization is not yet due for a salary review—keeps you on top of labor market trends. Taking part every year also allows you to budget accordingly when salaries are due for updating.  

Gain insights into competitive pay practices and secure your place as an employer of choice. This blog post will guide you through the importance of salary surveys and the benefits of regular participation. Let us map your organization’s path to compensation clarity. 

Understanding salary surveys

Before we go into the benefits, let us demystify the concept. 

Salary surveys capture compensation trends across sectors or labor markets. Such surveys collect data on a range of factors—including base salary, bonuses, and benefits—and analyze them to reveal valuable benchmarks for different roles and job grade levels. 

The information gleaned from these surveys is invaluable, as it helps your organization know its standing in the market and make the necessary adjustments to its compensation strategy. 

Regularly participating in salary surveys also ensures your data is always current. It helps you stay in tune with market trends and react promptly to changes. Furthermore, it provides a holistic view of the sector’s compensation landscape, enabling your organization to develop a comprehensive and competitive compensation strategy. 

Using salary surveys effectively 

To effectively use data from salary surveys, take a step back and ask a crucial question: “Who are we as an employer?”. The answer shapes your Employee Value Proposition (EVP) and defines your unique position in the labor market. It encompasses two key aspects: 

  1. Target market composition. Who are your competitors for talent? Identify companies of similar size, industry, and market to serve as relevant comparators in your surveys. 
  1. Target market position. Where do you want to stand in terms of salary competitiveness? Do you aim to be at the market average, attract top talent with higher pay, or be cost-conscious with a lower-than-average position? 

Remember, salary surveys are a compass. They offer valuable data, but your compensation policy drives your decisions. 

  1. Consistent criteria for comparators. Use the same factors to select comparators every time, ensuring accurate and reliable comparisons. 
  1. Finding your sweet spot. Define your target percentile based on your EVP. Do you want to be in the top 10% for attracting high performers, or are you comfortable with the median to control costs?  
  1. EVP alignment. Design your compensation practices to reflect your EVP, offering benefits and pay structures that resonate with your desired talent pool.  
  1. Market-aware adjustments. Stay informed about market trends and competitor offerings revealed by salary surveys. Use this data to make informed adjustments to your compensation package, including base salary, bonuses, and benefits. 

Ultimately, your compensation budget and target market position are the driving forces behind your pay structure. Salary surveys act as a valuable tool to calibrate your offerings, stay competitive, and attract the talent you need. 

Reaping the rewards of regular participation 

Participating in salary surveys is not just a box to check; it is an investment in your organization’s success. Frequently taking part in salary surveys offers a wealth of benefits: 

Competitive benchmarking 

Stay competitive in the labor market by understanding how your compensation stacks up against the best. By regularly participating in salary surveys, you can: 

  • Find any gaps. Once you determine how competitive you want to be in your chosen market position, surveys can help point out areas where your compensation falls short, allowing you to adjust your organization’s strategies. 
  • Know your market position. Understand how your salaries compare to sector averages and market leaders. Are you leading the pack or falling behind? 
  • Stay ahead of the curve. Predict compensation (salary and benefits) trends and proactively adjust your total compensation packages to keep top talent and attract recruits. 

By using the insights from salary surveys, you can ensure your organization remains an attractive employer, allowing you to win the war for talent. 

Equity and fairness 

Regularly taking part in salary surveys helps promote pay equity and fairness. By taking advantage of salary surveys, you can: 

  • Bridge the pay gap. Equity is ensuring you pay for the role and not the person. Eliminate pay discrepancies and ensure internal equity. Use salary survey data rather than the person’s pay history to inform compensation management policies, building a workplace where everyone is rewarded fairly. 
  • Craft a more equitable structure. Use data-driven insights to adjust your salary scale, ensuring fairness and alignment with industry standards. 
  • Build trust and transparency. Open communication and data-backed pay decisions foster a culture of trust and respect, leading to a more positive work environment. 

Investing in salary surveys is an investment in your staff and your organization’s success. By ensuring fair and transparent compensation, you can build a more motivated, engaged, and inclusive workforce, driving positive outcomes for everyone. 

Informed compensation decisions 

Salary surveys, far from being data dumps, can be your secret to building a winning human resources strategy that attracts, retains, and unlocks the full potential of your workforce.  

Joining salary surveys every year can improve your compensation practices by enabling you to look beyond the numbers. While salary is essential, salary surveys can help you assess what employees value—flexible work arrangements, learning and development opportunities, and recognition and reward programs.  

Design compensation packages that go beyond the paycheck. While compensation is the biggest draw, in some markets, having the right benefits can also help keep your competitive edge.   

Salary surveys are a treasure trove of insights and analysis waiting to be unlocked. You can build a compensation strategy that attracts and keeps top talent by harnessing their power. 

Attract and retain top talent 

Attracting and keeping staff needs a data-driven, strategic approach. Gone are the days of generic offers and one-size-fits-all solutions. Organizations must cultivate a compelling employer value proposition that resonates with skilled talent.  

  • Become an employer of choice. Offering competitive salaries and attractive benefits packages, informed by reliable survey data, makes you a magnet for top talent, enhancing your employer brand and reputation.  
  • Tailor your strategies. Use survey insights to understand your target audience’s compensation expectations and tailor your recruitment and retention strategies accordingly.  
  • Predict and prevent turnover. Find potential risks by comparing your packages to what market leaders offer for similar roles. Adjusting based on the latest data can keep your employees engaged and committed. 

Leveraging robust salary surveys is not just a good practice; it is a competitive advantage. Understanding market rates empowers you to craft compelling compensation packages that attract target candidates and ensure internal equity. The result? Increased employee satisfaction, reduced turnover, and a more dynamic workforce. 

From insights to action 

Regular participation in salary surveys empowers you to make informed compensation decisions, attract and retain top talent, and cultivate a healthy, high-performing organization. Do not miss out on this invaluable resource. Birches Group provides labor market data in over 150 countries, and we are here to help. Register for our comprehensive salary surveys today and secure your organization’s future success or get in touch with us to learn more. 

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.

fastest-growing economies

FORECASTS TO WATCH: A LOOK AT 2024’S FASTEST-GROWING ECONOMIES

Written by Kai Donesa on . Posted in Resources.

As we look forward to a new year, we are pleased to highlight some of the fastest-growing economies in 2024. This bulletin provides a snapshot of the dynamic global economic landscape, underscoring labor markets that are resilient and highly expected to grow.

Overview of global economic trends

Global economic growth is expected to slow in 2024, but a recession is not likely, says the International Monetary Fund (IMF) in its October 2023 World Economic Outlook. The IMF projects global growth to slow to 2.9%, down from 3% in 2023. This slowdown is due to several factors, including the long-term consequences of the COVID-19 pandemic, the war in Ukraine, and the tightening monetary policy of central banks worldwide.

Emerging markets are expected to continue to outperform advanced economies. The IMF forecasts emerging and developing markets to grow by 4% in 2024, while advanced economies will grow by 1.4%.

The fastest-growing economies

Which countries will see the most growth in 2024? According to the IMF, 20 economies across the Asia Pacific, the Americas, Sub-Saharan Africa, the Middle East, and North Africa top the list.

A map of central and south america.
A map of asia and pacific countries.
A map of sub saharan africa.
A map showing the countries of africa.

Source: International Monetary Fund, World Economic Outlook, October 2023

Many of the fastest-growing economies are in the Asia Pacific and Sub-Saharan Africa. These regions are home to some of the world’s most populous countries, and their economies have expanded rapidly in recent years.

A bar chart showing the number of sales in a year.

A rapidly moving labor market reflects a fast-growing economy. Using data from our most recent Multi-sector Salary Survey, we have found that many of the rapidly growing economies are moving in a positive direction.

Our salary surveys provide valuable market movement data for nearly all the countries listed, making them a comprehensive resource for understanding global labor market trends. This extensive coverage ensures that you have access to information on different nations, allowing you to make informed decisions about hiring and international expansion.

Three economies to watch

The IMF further reports that Sub-Saharan Africa will be the second fastest-growing region in 2024. Growth in this part of the world is projected at 4%, well above the 2.9% global average.

For this bulletin, we will focus on three economies in Sub-Saharan Africa: The Gambia, Ethiopia, and Burundi. We have chosen these markets because they all show significant labor market movement based on our October 2023 salary survey data.

The Gambia

Over 6% GDP growth, declining inflation, and continued recovery in tourism

According to the World Bank’s Third Gambia Economic Update, the Gambia has displayed “remarkable resilience in the face of global economic challenges.” Its economy is expected to grow by 6.2% in 2024, accelerating from 5.6% in 2023.

Several factors drive this outlook, including the continued recovery of tourism and moderating consumer prices. Inflation is expected to decline from 17% in 2023 to 12.3% in 2024 as global commodity prices normalize.

According to World Bank economist Ephrem Niyongabo, the Gambian government must implement policies to accelerate financial inclusion, enhance access to financial services, and support economic growth.

What our salary survey data reveals. Using data from our Multi-Sector Salary Survey, we examined market movement in the Gambia from October 2022 to October 2023.

Salaries for support workers in the West African nation of 2.5 million people increased by an average of 13.6% over the period. On the other hand, professional workers experienced an average market movement of 14.3% over the same period.

Our data shows that the labor market in the Gambia is moving upward, with salaries increasing for both support and professional workers. This is a positive sign, suggesting that organizations are growing and can afford to pay their employees more.

Driving forces of economic growth. Analysts and economists say the Gambia’s growth will pick up in 2024 due to increased activity in all sectors, notably:

  1. Tourism. Tourism in the Gambia has been hit hard by the COVID-19 pandemic but is now on the road to recovery. Fitch Solutions reports that tourist arrivals to the Gambia will be strengthened by improving economic conditions in key markets such as the United Kingdom.
  2. Agriculture. Agriculture is another important sector of the Gambian economy. The World Bank cites improved agricultural production as contributing to Gambia’s growth.
  3. Infrastructure. The World Bank further notes that investments in infrastructure programs such as roads and bridges are also expected to drive growth.

Ethiopia

Above 6% GDP growth, greater political stability, and liberalization efforts

Africa’s second-most populous country has grown by nearly 9% annually over the past decade. The Ethiopian economy is expected to accelerate in 2024, with most analysts predicting GDP growth above 6%. The IMF projects 6.2% growth, slightly higher than the 6.1% rate in 2023. Consumer prices are expected to drop from 29.1% in 2023 to 20.7% in 2024.

Ethiopia’s rebound is driven by several factors, including post-conflict reconstruction, continued progress on reforms, and expected IMF financing worth at least US$2 billion.

What our salary survey data reveals. Upon reviewing the market movement in Ethiopia from October 2022 to October 2023, we saw an average salary movement of 19.1% across job roles. The salary movement for support roles was higher at 20.8%. On the other hand, the salary movement for professional roles saw a slightly lower increase of 17.4%.

Our data suggests that Ethiopia’s job market is strong, and salaries are increasing across roles.

Driving forces of economic growth. What factors support Ethiopia’s accelerated growth in 2024?

  1. Peace and political stability. The Tigray War in the north from 2020 to 2022 substantially impacted lives, livelihoods, and infrastructure. Since then, a peace agreement with Tigray’s regional administration has been a crucial step to elevating investor sentiment, the World Bank notes. The Economist Intelligence Unit adds that a relative improvement in political stability will drive a gradual increase in growth.
  2. Market liberalization and privatization. The African Development Bank states that liberalizing more sectors to unlock foreign investments may boost Ethiopia’s economic outlook. Analysts from Coface and Lloyds Bank describe the opening and modernization of banking, finance, and telecommunications as promising. The government is also pursuing its “Homegrown Economic Reform Agenda 2.0,” a policy mix addressing investment and trade, productivity, and climate resilience.
  3. Agricultural potential. Ethiopia is the fifth-largest coffee producer in the world. Lloyds Bank says agriculture contributes to over a third of Ethiopia’s GDP and employs more than two-thirds of the workforce. Additionally, the authorities have been making sustained efforts to add value to agricultural products and plan to develop agro-industrial parks across the country.

Burundi

6% GDP growth, increased government spending, and improvements in agriculture

Burundi’s economy is projected to grow by 6% in 2024, much higher than the expected growth of 3.3% in 2023. This is driven by government spending and increased earnings from mining and agriculture. Consumer prices are expected to decline to 16.1% from an estimated 20.1% in 2023, as measures to boost farm production and stabilize the exchange rate take effect.

Overall, the outlook for Burundi is positive. However, achieving growth will require the government to address key challenges and implement sound economic policies.

What our monitoring reveals. Our data shows that salaries in Burundi increased by an average of 14.2% from October 2022 to October 2023. Higher salary increases were seen at 16.2% in professional roles. In comparison, lower salary increases were seen at 12.2% in support roles.

Driving forces of economic growth. Burundi is poised for encouraging growth in 2024. Three key drivers are fueling this momentum:

  1. Government spending. An infrastructure shortage is one of the significant constraints to modernizing Burundi’s economy. The government plans to increase spending by about 65% in the 2023–24 fiscal year—particularly on infrastructure—to stimulate economic activity. Coface cites that constructing a new railway line between coastal Tanzania and landlocked Burundi will begin in 2024, making supplying food and exporting minerals easier.
  2. Mining. Burundi has untapped mining potential, which could be a “game-changer for its development,” says the Institute for Security Studies Africa. The East African nation is rich in mineral resources, including nickel, gold, phosphates, and rare earth elements. Yet, since April 2021, the activities of foreign mining firms have been suspended. In June 2023, the government published a new Mining Code to improve the regulatory environment and attract the return of foreign investments in mining.
  3. Agriculture. ISS Africa further predicts that agriculture will have the most significant impact on reducing poverty in the short term. Agriculture is the backbone of Burundi’s economy, accounting for more than 30% of GDP and employing over 85% of the workforce. The World Bank expects agricultural production to pick up in 2024. It also notes that more private sector activity in agriculture is an opportunity for Burundi to increase food production.

How Birches Group’s salary surveys can help you

Strategic insights are crucial for organizations looking to work in emerging markets. Register today for Birches Group’s extensive salary survey database and equip yourself with the most comprehensive and up-to-date compensation and benefits data.

Birches Group provides invaluable insights into salary structures, benefits packages, and market trends in over 150 countries. Using our data, you can make informed decisions, navigate diverse markets, and ensure your human resources strategies align with the ever-changing global environment.

References :

  • African Development Bank. 2023. Burundi Economic Outlook. Accessed December 09, 2023. https://www.afdb.org/en/countries/east-africa/burundi/burundi-economic-outlook.
  • —. 2023. Ethiopia Economic Outlook. Accessed December 08, 2023. https://www.afdb.org/en/countries/east-africa/ethiopia/ethiopia-economic-outlook.
  • —. 2023. Gambia Economic Outlook. Accessed December 07, 2023. https://www.afdb.org/en/countries/west-africa/gambia/gambia-economic-outlook.
  • Coface. 2023. Burundi. August. Accessed December 09, 2023. https://www.coface.com/news-economy-and-insights/business-risk-dashboard/country-risk-files/burundi.
  • —. 2023. Ethiopia. June. Accessed December 08, 2023. https://www.coface.com/news-economy-and-insights/business-risk-dashboard/country-risk-files/ethiopia.

Carla is a part-time copywriter in our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

Follow us on LinkedIn for more content on pay management and HR solutions.