Haiti Gang Violence

Haiti at a Standstill: What to Know About the Escalating Gang Violence in the Capital

Written by Kai Donesa on . Posted in Uncategorized.

Birches Group monitors the world’s most dynamic labor markets, keeping you informed about critical trends and developments gaining significant media attention.  

Port-au-Prince is in a state of paralysis as Haiti gang violence spirals out of control. This eruption of chaos has led to the resignation of Prime Minister Ariel Henry in the face of mounting pressure.  

With a power vacuum now in place, the gangs are expanding their influence in Port-au-Prince and fighting for control of the city. Yet, the future of Haiti’s government appears increasingly uncertain. As a result, Haitians are grappling with the immediate dangers and the long-term question of who will guide the Caribbean nation out of the crisis. 

What is happening in Haiti? 

On the week of 29 February 2024, armed gangs in Port-au-Prince attacked two of Haiti’s largest prisons and other key infrastructure. More than 3,800 inmates have fled, and the gangs have openly tried to assert political control in the country. This recent escalation of Haiti gang violence unfolded after Henry left the country on a trip to Kenya to seek support in combating Haiti’s long-standing gang problem.  

Gang leaders took advantage of Henry’s travel to seize control of the capital. The gangs attacked police stations and the international airport, preventing the Prime Minister from returning. Its most visible leader, Jimmy Chérizier, has called on Haiti’s many criminal groups to join forces and overthrow Henry’s government. 

After two weeks of continuous violence back home, Henry announced in Puerto Rico on 12 March 2024 that he would resign as soon as a transitional presidential council was formed. However, Henry remains unable to return to Haiti, and creating the council requires careful consideration and planning. 

According to United Nations (UN) officials, about 80% of Port-au-Prince and the surrounding region is now under gang control. Furthermore, UN reports estimate that 5.5 million people—nearly half of Haiti’s population—need humanitarian aid.  

How is the crisis affecting humanitarian groups? 

What is clear is that Haiti’s new surge of unrest is causing a dramatic increase in the country’s humanitarian needs, displacing tens of thousands. 

The escalating Haiti gang violence in Port-au-Prince has created a nightmarish situation for humanitarian groups trying to deliver aid. Restricted movement and fierce clashes have severely disrupted the flow of essential supplies, including food, water, and medicine. 

Caught in the crossfire. Beyond the logistical challenges, aid groups face the constant threat of violence. Staff members are forced to navigate volatile areas controlled by gangs, putting their safety at risk. 

The path forward. The immediate focus is restoring security and facilitating the safe passage of aid workers so they can respond swiftly to the deepening crisis. Analysts and observers agree that collaboration between Haitian authorities, international organizations, and local nonprofits is vital to setting up secure aid corridors. 

The long road to recovery. The long-term consequences of this crisis on development and humanitarian efforts are a growing concern. Disruptions to aid delivery will worsen existing issues like poverty and malnutrition. 

How are the Haitian government and the international community responding to the crisis? 

In response to the increased violence, the Haitian government declared a state of emergency on 3 March 2024. Nighttime curfews are also being enforced in some areas to “take appropriate measures in order to regain control of the situation.” Additionally, the government has deployed more police forces. However, these efforts have been largely ineffective against heavily armed gangs. 

The international community has expressed deep concern over the rapidly deteriorating situation in Haiti. UN Secretary-General Antonio Guterres emphasized the urgency of addressing the crisis. Specifically, he called for increased financial support for the UN-authorized multinational security mission, which is critical to restoring stability in the nation. 

How Birches Group can help 

The current turmoil in Haiti highlights the importance of having a Special Measures Policy. This type of policy allows your organization to adapt its human resources strategies even when faced with unforeseen events. A well-crafted Special Measures Policy includes triggers and immediate responses to cushion the effects of crises on staff while assessing market movement in succeeding months.  

Don’t wait for a crisis to happen—take a proactive approach. Birches Group can help you develop a Special Measures Policy today. Our expert guidance will address your needs, ensuring your organization continues functioning amid social unrest. By taking this critical step, your organization stays resilient in an ever-changing world. Contact Birches Group today. 

While this headline article was written in mid-March 2024, Haiti’s social unrest and political crisis are rapidly evolving. The information presented, including statistics and events, reflects the understanding at the time of writing. 

References 

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.

Myanmar's economic crisis

From Power Struggles to People’s Plight: The True Cost of Myanmar’s Power Play 

Written by Kai Donesa on . Posted in Uncategorized.

Birches Group closely monitors labor markets that are making headlines worldwide, keeping you updated on trends and developments. 

In Myanmar, a Southeast Asian nation brimming with hope for democracy, a brutal reality continues to grip the country. A February 2021 military coup d’état overthrew opposition leader Aung San Suu Kyi and her elected government—returning Myanmar to authoritarian rule, shattering years of progress toward democracy, and plunging the country into a relentless power struggle. 

While the world’s attention has focused on the political turmoil, mass displacement, and human rights abuses, another tragedy unfolds. Three years into military rule, the junta has once again extended the state of emergency for another six months. Sadly, Myanmar’s people continue to endure the worst of the crisis. 

This headline article goes beneath the surface of violence and unrest in Myanmar, exploring how the coup has devastated the country’s economy. 

Shifting tactics: Junta faces renewed resistance 

Since seizing power in February 2021, Myanmar’s military junta has faced unwavering opposition. The Global Center for the Responsibility to Protect reports that hundreds of thousands of citizens have joined peaceful protests and strikes against military rule. The International Crisis Group also reports, “Some of the country’s ethnic armed groups have gone on the offensive, and new forms of armed resistance by civilian militias and underground networks have emerged.” 

The past five months have seen a shift in both the military’s tactics and the nature of resistance. The government has been rapidly losing ground to rebel forces in several regions of Myanmar. In late October 2023, an alliance of three ethnic armed groups launched a coordinated attack against the regime, posing the strongest challenge since the 2021 coup. 

Reuters reports that Myanmar’s junta is now “facing the fiercest threat to its power since seizing control.” Collective campaigns targeting the military have emerged across the country, and the military’s control has been shaken, its resources strained, and the morale of its soldiers undermined. 

As it battles an unprecedented alliance of opponents while being weakened by internal dissent and defections, the military regime has escalated its crackdown on civilians. The junta has stepped up its increasingly brutal methods like mass arrests, forced displacements, and aerial bombardments. 

Analysts from the United States Institute of Peace, however, say that “There is simply no way back for an enfeebled and stretched junta that is rapidly losing its ability to control the public. Its airstrikes and arson attacks on civilian populations have only served to deepen the public’s commitment to resist.” 

This interplay between shifting tactics and renewed resistance paints a grim picture of Myanmar’s current situation, where the cost of the power struggle is borne by the increasingly desperate civilian population. Amid the escalation of the fighting, the United Nations (UN) reports that over 2.5 million people have been displaced by the armed conflicts. 

Yun Sun, a nonresident fellow of the Brookings Institution, comments, “Some Myanmar watchers believe that the balance of power may shift sufficiently to change the tides within the country or the military government.” Even though there have been some significant and strategic gains for ethnic armed organizations who have been working with increased cooperation, the conflict is ongoing with no obvious end in sight, says the UN Office for the Coordination of Humanitarian Affairs (UN OCHA) in its Myanmar Humanitarian Needs and Response Plan for 2024. The Economist Intelligence Unit further notes that while “the junta’s control has weakened substantially and now controls about 30-40% of Myanmar’s territory, it is unlikely to fall.” 

Kyat in crisis: Currency devaluation and eroding purchasing power 

The situation in Myanmar, fueled by the military junta’s desire to maintain power, has triggered a domino effect of consequences affecting the lives of citizens. The political turmoil has translated into a harsh reality of economic hardship, social unrest, and deepening poverty. 

Sanctions imposed by the international community, aimed at pressuring the junta, have crippled Myanmar’s financial system. Some countries have also suspended development funds and imposed embargoes, among other measures. While intended to isolate the military regime, these sanctions have choked the local economy. 

The World Bank notes that Myanmar’s economy has shrunk since the COVID-19 pandemic and the military coup, with economic activity remaining weak and constrained. In fact, it estimates the economy in 2023 to be 30% smaller than it might have been in the absence of the pandemic and coup. 

Trade and investment have dwindled. In its investment climate statement on the country, the United States (US) Department of State says, “The regime’s ongoing violence, repression, and economic mismanagement have significantly reduced Burma’s commercial activity.” 

The US State Department expounds that the Central Bank of Myanmar “has imposed severe foreign exchange restrictions that limit commercial activity and severely limits access to US dollars.” In its most recent economic monitor, the World Bank notes the presence of multiple exchange rates and a widening gap between the official and parallel market rates. 

Rising inflation adds another layer of hardship. Inflation and conflict are driving up the prices of essential goods, such as food and fuel, leaving vulnerable households in distress, says the UN OCHA in its January 2024 update on Myanmar. Additionally, a recent World Bank survey found that about half of the surveyed households reported a decrease in income over the past year. Oxfam adds that over 20% of the population still lives below the poverty line, pushing people at risk deeper into desperation. 

What our Market Monitor reveals 

In the wake of Myanmar’s ongoing political turmoil, concerns arise about its impact on the labor market. To understand this complex and multi-layered issue, we reviewed data from our Market Monitor reports for the past six months. Looking back at the period between 1 August 2023 and 1 February 2024, we wanted to shed light on how the crisis is affecting Myanmar’s labor market. 

Our Market Monitor reports show a significant increase in volatility and exchange rate movement since 1 December 2023, when Myanmar reentered our list of markets to watch at Level 3. Level 3 (out of six levels of volatility) suggests rapidly evolving market conditions and an exchange rate movement of 40% or more in six months. It also implies multiple salary reviews and revisions should be considered among the comparators of our salary surveys in Myanmar. 

In the 15 December 2023 edition of our report, Myanmar’s volatility level quickly rose to Level 4, remaining high since then. Level 4 suggests a sudden, unexpected social/economic event, a currency devaluation of 50% or more in six months, and a disjointed and unclear survey comparator response. Myanmar’s exchange rate movement sharply increased from 40% on 1 December 2023 to 63.3% on 15 December 2023. However, it has slightly decreased to 62.9% since 1 January 2024. As of 15 February 2024, our latest edition, the exchange rate movement over the past six months has further declined to 61.4%. 

How Birches Group can help 

The situation in Myanmar is still fluid, and its future uncertain. We at Birches Group urge readers to pay close attention to the country’s political climate. The ramifications of Myanmar’s economic crisis extend far beyond news headlines. Understanding the current situation and its socioeconomic impact is crucial for organizations operating and managing their workforce in Myanmar. 

Staying informed requires ongoing monitoring. We encourage you to subscribe to our Market Monitor reports for bimonthly updates and analysis. Our latest edition (15 February 2024) focuses on Myanmar as a case study for developing special measures amid volatility. 

Moreover, registering for our salary surveys will equip you with the most recent data on compensation and benefits in Myanmar, allowing you to maintain responsible HR practices during these grim times. 

Birches Group is committed to providing you with the latest insights and resources to navigate this crisis. By staying informed and using reliable data, we can minimize the negative impact of this ‘forgotten emergency’ on the lives of Myanmar’s citizens. Subscribe to our Market Monitor and register for our compensation and benefits surveys today. 

References:

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.

Unraveling the Complexity: Useful Strategies for Managing Amid Uncertain Times

UNRAVELING THE COMPLEXITY – USEFUL STRATEGIES FOR MANAGING COMPENSATION AMID UNCERTAIN TIMES

Written by Kai Donesa on . Posted in Resources.

Navigating volatility is essential in a world where the only constant is change. Managing amid uncertain times is a necessary skill that demands resilience, agile decision-making, and a shift in perspective.

This blog post provides the mindset, tools, and actionable strategies to help you face labor market challenges head-on and deliver results regardless of the circumstances. We’ll share a roadmap grounded in our years of experience serving clients across emerging markets, with insights you can apply to your organization. Equip yourself with a resource that helps you stay resilient and adapt to the rapid pace of change.

The nature of volatility

Volatility is often used in finance, but its application extends beyond stocks and bonds. In the broader sense, volatility refers to the degree of variation or instability. In the business continuity context, this could mean unforeseen circumstances that disrupt the normal dynamics of the labor market.

Examples of volatility include:

  • Hyperinflation, devaluation, and other economic events
  • Natural disasters, such as earthquakes
  • Periods of unrest, civil war, or armed conflict

The key lies in understanding volatility and learning how to manage it. In this way, you can ensure your organization’s sustainability.

Remember, uncertainty is part of the world we live in. Accepting this is the first step to managing it effectively.

The need for strategic planning in HR

Human resources (HR) plays a crucial role in managing volatility. As the hub for workforce management, HR helps ensure the organization’s stability while adapting to changing circumstances. Your people are your greatest asset, and ensuring staff feel secure and supported is important.

Strategic planning in HR is, thus, essential. Planning involves identifying, managing, and mitigating risks and ensuring the organization has the right tools and policies to address them. Planning allows HR to anticipate and prepare for volatility rather than merely reacting. It’s about thinking ahead.

Strategic planning also fosters a proactive culture within the organization. By actively seeking out and addressing issues, HR can inspire employee confidence, encouraging a sense of security and stability even during uncertain times.

Key strategies and tools to manage volatility

Managing volatility effectively requires both strategic thinking and practical action. Here are a few key strategies and tools that can help you navigate uncertain times with resilience:

Stay updated on news and current events. Knowledge is power. Staying informed about current affairs around the world is essential, particularly during times of uncertainty. We recommend you begin by reading our headline articles, which provide the latest updates on local market conditions.

Monitor labor market movement. In a dynamic global economy, it is crucial to watch for changes in labor markets. This involves keeping a firm pulse using reliable resources, such as our bi-monthly Market Monitor report. Our report draws insights from our diligent monitoring of exchange rate movements of local currencies against the United States dollar, euro, and other major currencies.

We mainly focus on emerging markets, given their inherent volatility and susceptibility to unexpected events. This strategy allows us to provide relevant and insightful data, ensuring you can react to market trends.

Define your Compensation Policy. Another strategy is to define how your organization will remunerate its employees. The Compensation Policy includes the mechanics for paying base salary, cash and in-kind benefits, as well as non-salary and after-service benefits, providing a holistic view of the total compensation structure. The policy builds transparency, setting clear expectations for compensating staff.

Establish your Special Measures Policy. Staff want to rely on you to support them during a crisis. Managers want to be able to make decisions quickly in challenging times. A clear Special Measures Policy addresses these concerns. This policy, designed to supplement your existing Compensation Policy, outlines what the organization will do when certain uncontrollable events—like hyperinflation or a natural disaster—occur and monitoring the labor market is no longer sufficient.

Get in touch with consultants and other employers. No organization is an island. Reach out to consultants and other employers for insights and collaboration. It’s crucial to foster a shared understanding of labor market trends and devise responses to market volatility.

Additionally, engaging with an HR consultancy like Birches Group can help you gain valuable insights into the intricacies of HR management. Open dialogues with industry peers can offer a diverse perspective on handling workforce challenges, helping your organization thrive amidst uncertain times.

Case Study: Effective HR Management in Times of Volatility

To illustrate how you can apply these tools and strategies in a real-world context, let’s look at a case study: a global public health initiative operating in markets where economic conditions can become unsettled due to a range of factors. During such situations, the Initiative recognizes the need to support its staff in facing hardships related to volatility.

The Initiative has tapped the expertise of Birches Group in designing a Special Measures Policy to address the challenges posed by market instability and to ensure the continuity of its operations while upholding its core principles. The policy is driven by key objectives such as business continuity, staff assistance, and competitiveness.

Birches Group designed a Special Measures Policy that covers the following:

  • The conditions that will trigger the start of the policy,
  • The measures that will be applied, and
  • The level of coordination involved in conducting the policy.

The policy provided the Initiative with a systematic approach to responding to instabilities in local markets. Establishing such a policy also allowed the Initiative to take the lead in helping staff amid uncertainty while being mindful of actions taken in the market.

The Initiative has taken a proactive approach to implementing special measures when necessary. The organization checks market conditions, assesses the impact on its staff, and considers the broader economic context.

Being proactive amidst uncertain times

In the face of volatility, be proactive rather than reactive. This involves anticipating changes, planning for various scenarios, and continually striving for improvement. It’s about taking charge of the situation rather than simply reacting.

Remember, being proactive means being ready for whatever comes your way. By applying our recommended tools and strategies, you can confidently navigate uncertain times and ensure your organization’s sustainability in the face of volatility.

How Birches Group can help you manage volatility

At Birches Group, we understand the challenges of managing volatility and are here to help. We offer various HR services and tools to help you navigate uncertain times effectively. Whether through sharing guides and resources or designing your organization’s Compensation or Special Measures policy, we can support you in navigating volatility successfully.

As a global HR consultancy, Birches Group offers tools and strategies to manage volatility effectively. Our team of experienced consultants can help you understand the nature of volatility and develop appropriate policies.

Does your organization need guidance in managing staff amid uncertain times? Contact us today.

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.

understanding the difference between recognition and reward

UNDERSTANDING THE DIFFERENCE BETWEEN RECOGNIZING AND REWARDING YOUR PEOPLE

Written by Kai Donesa on . Posted in Resources.

When was the last time you acknowledged your people for a job well done?

It’s easy to get caught up in the daily grind and forget to recognize the efforts of those around us. As leaders and managers, it’s crucial to understand the difference between recognizing and rewarding the hard work of our staff.

While recognition and reward are essential in motivating and encouraging employees, they are vastly different. Each word carries varying connotations and outcomes. Recognition is about acknowledging staff for improving at their jobs, while reward is about commending individual staff for their exceptional performance and achievements.

Knowing the difference between both strategies can transform your workplace dynamics. In this blog post, we will explore the nuances between recognizing and rewarding staff and how you can strike a balance to create a culture of appreciation and excellence in your organization.

Why you must distinguish between reward and recognition

Recognizing and rewarding staff are two distinct concepts often misunderstood and used interchangeably. Distinguishing between the two is critical because it informs how your organization appreciates and incentivizes its people. At the same time, recognition and reward complement each other in creating a balanced and positive workplace culture.

A common mistake in organizations is using recognition and reward synonymously. However, this mindset can lead to a skewed view of what motivates staff. Recognition and reward have different impacts, and implementing a balanced approach can significantly improve your human resources strategies.

Understanding recognition

At work, recognition can be a powerful motivator. Recognizing the growth in your people’s skills and knowledge boosts their morale and promotes a positive work culture. It’s an often-overlooked gesture that can significantly affect job satisfaction. When staff members feel valued and appreciated, they are more likely to put in their best effort.

The role of employee recognition in fostering a motivated, satisfied, and high-performing workforce cannot be overstated. As we better understand what recognition focuses on, remember that each point holds unique value in shaping an employee’s job progression.

Valuing knowledge. The knowledge and expertise of your people are the driving forces behind your organization’s innovation, problem-solving, and decision-making. Recognizing and appreciating the depth and breadth of your staff’s knowledge can foster a culture of learning and growth. It encourages employees to continue expanding their knowledge base, contributing to their personal and professional development.

Appreciating skills growth. Skills are the practical application of knowledge. They are tools that enable staff to work effectively. Recognizing the skills of your people, from technical prowess to interpersonal abilities, is important. By acknowledging the growth in your staff’s skill sets, you confirm their value to the organization.

Recognizing capacity. Capacity refers to a person’s ability to meet the demands of the job. Recognizing an employee’s capacity is acknowledging their potential and ability to take on challenges. You trust their abilities and are confident in their growth potential. This recognition can empower staff to push them beyond their limits and strive for achievement.

Focusing on professional development. Professional development is important in an employee’s career progression. Recognizing your staff’s commitment to continuous learning and improvement shows you value their drive to better themselves.

Managing fair and objective pay increases. When your staff feel that their hard work and dedication are recognized with appropriate compensation, it boosts their morale. Additionally, fair pay increases demonstrate that your organization values and appreciates their contributions, encouraging staff to continue improving their skills and knowledge.

Recognizing and appreciating employees’ efforts creates a positive work environment where everyone feels valued. The Birches Group approach to recognizing employees is rooted in skills growth. Managers and staff members collaborate and have equal ownership of measuring and growing their skills. Providing your people with a framework that objectively measures and recognizes their skills growth, you enable the following opportunities:

  • Your managers and staff provide input on the pace of their growth
  • Your people are recognized and compensated as they become better at their jobs.

Understanding reward

Reward is integral to an organization’s approach to managing people. Most organizations tend to link reward to high-achieving, outstanding employees. However, at Birches Group, we also reward a majority of the staff who meet the expectations of their jobs.

So, what differentiates reward from recognition?

Recognizing results. Reward is often tied to specific outcomes or achievements, such as exceeding targets or completing a project successfully. It is a way to acknowledge and celebrate the results that staff members have delivered. Recognizing staff accomplishments reinforces the importance of their contributions and motivates them to perform at their best.

Acknowledging impact. Whether it’s through ideas, client service, or an ability to solve complex problems, the impact of one’s work is felt throughout the organization. Rewarding this impact is a powerful way to show staff that their job matters and makes a difference. By focusing on output, your organization can encourage employees to think creatively. More importantly, focusing on getting things done gives your staff the flexibility to try different paths to achieving their output.

Highlighting critical incidents. Critical incidents are situations that require immediate attention and exceptional handling. When your staff successfully navigates these challenging situations, it’s important to recognize their quick thinking and problem-solving skills. This will boost their confidence and motivate them to manage future incidents with the same level of competence.

Celebrating achievements. Achievements deserve credit and kudos. By celebrating your staff’s achievements, you acknowledge their efforts and foster a sense of pride in their work. When you take time to celebrate individual or team accomplishments, it also encourages a spirit of camaraderie and communal success.

Offering bonuses. Bonuses are a tangible way of rewarding exceptional performance. They show your employees that you notice and appreciate their hard work. Offering bonuses as a form of recognition can incentivize employees to continue performing at a high level.

recognizing the difference of recognition and reward

Why your organization should both recognize and reward staff

A successful organization is like a well-oiled machine, with each part playing a role in supporting smooth operations. Employees are the most vital, powering the machine with their skills, dedication, and creativity. Thus, organizations must not only recognize but also reward staff.

As discussed earlier, recognition is a powerful tool that can significantly increase staff morale. When employees feel their hard work and dedication are recognized, they feel valued in the organization. This, in turn, can boost their productivity and enthusiasm for their work. Moreover, recognition fosters a positive work culture where employees feel appreciated and are likelier to go the extra mile for their job.

While recognition fuels pride in one’s work, reward reinforces this sentiment. Whether monetary or otherwise, rewards are a tangible acknowledgment of an employee’s contributions. They function as a driving force, motivating staff to exceed their performance levels and strive for higher achievements.

How to balance recognition and rewards in your workplace

Recognition and rewards help foster a positive work environment. They reinforce the behaviors and values that contribute to an organization’s success. However, striking the right balance between the two is a delicate process. If not appropriately managed, it can lead to discontent and demotivation among staff.

An overemphasis on rewards may make recognition seem hollow, while focusing too much on recognition may leave staff members feeling undervalued due to the lack of tangible benefits. Your organization can achieve an optimal balance by maintaining a consistent pattern of recognition and tying rewards to clearly defined performance benchmarks.

Recognize effort and reward results. Recognition should be frequent and consistent, aimed at acknowledging effort. This approach motivates all team members and not just top performers. Employees who see their efforts recognized will likely continue contributing to their best abilities. On the other hand, rewards should be linked to significant achievements and results. This approach reinforces the link between performance and rewards, encouraging employees to strive for excellence.

Implement a fair and transparent system. Fairness is vital in balancing recognition and rewards. Ensure that all employees understand how the recognition and reward system works and that it is applied consistently and uniformly across teams. Make sure the rules and criteria for recognition and reward are well-defined and communicated to each staff member. This involves outlining the performance standards or behaviors that will be rewarded or recognized, and the types of rewards or recognition that employees can earn.

How Birches Group’s approach and tools can help

At Birches Group, we understand the importance of recognition and rewards in engaging your staff. Our Community™ approach has made it possible to distinguish recognition from reward, where pay movement is linked to skills growth, and performance is linked to rewarding achievement.

Our online platform offers comprehensive tools and resources to help your organization recognize and reward employees effectively. In addition, our compensation and benefits surveys provide data and insights into what similar organizations in your labor market are doing to recognize and reward staff.

We also offer training and consulting services to help you develop and implement effective recognition and rewards programs. Our team of experts is ready to guide your organization using Community™. Contact Birches Group today and let us guide you in distinguishing recognition and reward.

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

Ghana's Debt Crisis

Navigating Ghana’s Debt Crisis: An Update

Written by Kai Donesa on . Posted in Uncategorized.

Birches Group monitors labor market trends making headlines worldwide, ensuring you are updated on the latest developments.

As the world grapples with economic uncertainty, one country that stands out in its struggle is Ghana—a gold, cocoa, and oil producer in West Africa.

In 2022, we published a headline article on Ghana, detailing the government’s efforts to stabilize the economy amidst a cost-of-living crisis. In our article, “Ghana’s Cost of Living Crisis: What You Need to Know,” we also explored the growing concerns surrounding the country’s surging inflation.

Since then, Ghana has plunged into a financial crisis—its worst in a generation—mostly due to its rising debts. AllAfrica.com reports that Ghana’s debt-to-GDP (Gross Domestic Product) ratio has reached 98.7%, severely hindering the country’s economic growth and stability.

According to an article by the New York Times, Ghana’s debt crisis has reached a critical juncture: the government was struggling to meet its financial obligations. On 19 December 2022, Ghana suspended payments on most of its external debts, effectively entering a state of default. By the end of 2022, Ghana owed US$63.3 billion to both foreign creditors and domestic lenders.

The government’s decision was met with mixed reactions, with some welcoming it as a necessary step to restructure Ghana’s debts. Other voiced concerns about its long-term implications.

A strain on households and businesses

The debt crisis is greatly affecting individuals and firms across Ghana. In a survey by Afrobarometer, 87% of citizens think the country is heading “in the wrong direction.” Rising prices have eroded purchasing power, making it difficult for many to afford necessities. Businesses are facing increased costs and reduced consumer demand.

A World Bank report estimated that 850,000 Ghanaians have drifted into poverty due to double-digit inflation. And over the past two years, anti-government protests have become more frequent, news outlets like the BBC and Business Insider Africa have reported.

The government’s response to the debt crisis

However, the Ghanaian government has not been idle in the face of the debt crisis. It has embarked on several actions to address the matter, including seeking aid from the International Monetary Fund (IMF) and implementing austerity measures.

Seeking financial aid from the IMF. In May 2023, Ghana secured an Extended Credit Facility amounting to US$3 billion over the span of three years. “It is the 17th time Ghana has been compelled to turn to the fund since it gained independence in 1957,” the New York Timesnotes.

The Washington-based lender has laid out a detailed rescue plan to get Ghana back on its feet. The plan includes measures to cut back on debt and spending, raise revenues, and protect the poorest. In the meantime, Ghana shall continue to negotiate with its foreign creditors.

As a result of its strong performance in meeting IMF targets, Ghana reached an agreement on 6 October 2023 to unlock the next US$600 million of its financing.

Restructuring debts. To meet IMF conditions, Ghana has also embarked on comprehensive debt restructuring. The New York Times remarks that “the debt situation was so unusual that the IMF, for the first time, made settling its domestic debt a prerequisite for a bailout.” A partial restructuring, which included swapping local bonds with new ones and extending due dates, was launched in December 2022 and completed in February 2023.

In May 2023, Ghana’s creditors formed a committee for debt restructuring talks. It received a “working proposal” a month later, sources with direct knowledge of the matter told Reuters. As of this writing, Reuters reports that Ghana is in the advanced stages of restructuring its external debts, with hopes of achieving a resolution by the end of 2023.

Other reforms. Additionally, the Ghanaian government is complementing IMF aid and debt restructuring with reforms in tax policy, revenue administration, and public financial management. The reforms aim to restore economic stability and debt sustainability, while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.

Despite the challenges, there have been some positive developments. The IMF sees that Ghana’s commitment to strong policies and reforms is bearing fruit. “Signs of economic stabilization are emerging. Growth in 2023 has proven more resilient than initially envisaged, inflation has declined, the fiscal and external positions have improved, and the exchange rate has stabilized,” the lender said after its first review in October 2023.

Despite these efforts, Ghana’s debt crisis is far from over. As they navigates this challenging period, it is crucial for organizations to stay informed. By understanding Ghana’s debt crisis, your organization can better prepare for similar situations in other labor markets.

How Birches Group can help

Ensure you are always prepared for changes in market conditions with our Market Monitor. Our trusted resource provides you with insights into current developments in emerging markets, empowering you to make informed decisions and adapt to new challenges.

Subscribe now and embark on a journey toward a deeper understanding of the market. Take the first step toward enhanced market insights today.

References:

A group of people sitting around a table in an office.

WHY ORGANIZATIONS SHOULD OUTSOURCE THEIR SALARY SCALE DESIGN

Written by Kai Donesa on . Posted in Resources.

Organizations are beginning to recognize that the key to attracting and retaining top talent hinges heavily on a strategic, fair, and competitive salary scale. Yet, tailoring this structure to your unique needs can be complex.

Do you have the tools to properly analyze labor market data? Can your human resources (HR) team maintain the salary scale annually, in addition to addressing other responsibilities? Is there a way to design and update your salary scale more efficiently? This is where outsourcing is necessary.

Outsourcing the design and maintenance of your salary scale unburdens you and your HR team from this intricate task, allowing you to focus on your core business operations. Handing this responsibility over to more experienced professionals does not only save time; it ensures that your salary scale aligns with your strategic goals, global policies, market trends, and industry standards.

This article discusses why organizations should consider outsourcing the design and maintenance of their salary scale. We will explore how this pragmatic move can help you, from gaining expert advice to ensuring market alignment. If you’ve been second-guessing whether you need to outsource your salary scale design, our insights might be what you need to make an informed decision.

Understanding salary scale design

Your salary scale is the single most important document in HR. The structure determines how much an employee will be paid based on their role, their value for experience at each grade level, and the difference between one grade level to the next. It tells your stakeholders everything they need to know about your organization, including:

  • How you position yourself in the market
  • What value you place on your jobs
  • How you manage relationships across jobs
  • What are the possible career progressions
  • Where you stand on equity and transparency

A well-balanced salary scale is crucial for your people to work efficiently and achieve team cohesion. Your salary scale drives all other HR programs, including recruitment, staff retention, promotion, and career development.

Designing the scale is not only about deciding how much to pay an employee or listing pay grades. It is driven by building a fair and equitable compensation structure that shows how you attract and retain talent, as well as motivate staff. It involves balancing internal considerations and team dynamics with the external market.

However, designing and updating your salary scale requires a deep understanding of your business strategy, a thorough knowledge of the labor market, and keen insight into the motivations and expectations of staff. These tasks demand a high level of skill, expertise, and experience.

Why it’s essential to have a well-designed salary scale

A well-designed salary scale establishes a framework for determining staff compensation and sets the standard for pay equity within your organization. It also helps ensure employees are rewarded fairly, boosting morale and motivation.

Your salary scale also serves as a roadmap for career progression, giving staff a clear idea of what they can expect as they advance. This transparency can help foster trust and loyalty among staff, leading to increased job satisfaction and lower turnover rates.

Further, a well-designed and updated salary scale can help your organization attract and retain top talent. By offering competitive salaries in line with market rates, you can position your organization as an employer of choice.

Common challenges in designing a salary scale

Designing a salary scale is not without its challenges, though. One of the fundamental issues is determining the appropriate pay range for each grade level within your organization. This requires a thorough understanding of the job market and the ability to assess the value of each level accurately, carefully balancing your organization’s workforce needs and overall budget.

Another challenge is ensuring pay equity. This involves making sure employees are paid fairly for their work. Achieving pay equity can be complicated, especially in large organizations with a diverse workforce across labor markets.

Keeping the salary scale up to date is also a concern. The job market constantly evolves, and the value of specific roles can change rapidly. The salary scale must be updated every year to reflect market trends.

The benefits of outsourcing salary scale design

Outsourcing the design of your salary scale offers several advantages:

  1. First, it frees up valuable time and resources. Designing a salary scale requires a significant amount of time and expertise. By outsourcing this task, your HR team can focus on other vital projects, such as employee engagement and talent development.
  2. Second, outsourcing gives you access to expert knowledge and insights. An HR consultancy firm like Birches Group has a deeper understanding of labor markets across continents. Additionally, firms such as ours can share accurate and timely information about salary trends and benchmarks.
  3. Finally, outsourcing ensures fairness and objectivity. An external firm can design a salary scale free of internal biases or conflicts of interest.

Case study: Elizabeth Glaser Pediatric AIDS Foundation

To illustrate the benefits of outsourcing your salary scale design and maintenance, let’s consider the case of the Elizabeth Glaser Pediatric AIDS Foundation (EGPAF), a nonprofit organization supporting activities in 19 countries. EGPAF had a centralized salary system but needed to ensure its salary scales kept up with the market, especially in Africa.

EGPAF tapped us to design its salary scale over several years. Doing so refined the nonprofit’s salary scales with a view closer to the local setting. We then looked at each African location, improving EGPAF’s pay structures and systems based on our NGO Surveys. Based on their budget, we developed three different salary scale options for each country.

As a result, EGPAF can now:

  • Name which comparators are relevant to them based on consistent comparator criteria developed for their salary scale review, and which scale design approach best addressed its internal compensation issues, all while staying within budget.
  • Get a more precise snapshot of the labor market through our salary survey data.
  • Anticipate and be better equipped when sudden changes in the market occur.

This case illustrates the significant benefits that can be gained from outsourcing your salary scale design.

How Birches Group can help you design and update your salary scale

Creating and maintaining a salary scale is a technical and creative process best left to specialists. If you’re considering developing or updating your organization’s salary scale, we at Birches Group are here to help. With our team of experienced professionals, we can provide salary scale options tailored to your needs.

We have extensive expertise in adapting or creating salary structures through our work with many clients from the public and private sectors. We believe proper salary scale design must be tailored to your needs and culture, as well as your compensation philosophy, market position, and budget. A well-designed salary scale must also align with the local market and adhere to corporate policy and compensation goals.

If you’re ready to learn more about how we can design and maintain your salary scale, contact us today.

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

Argentina's Peso Crisis

Navigating Volatility: A Closer Look at Argentina’s Peso Crisis

Written by Kai Donesa on . Posted in Uncategorized.

Birches Group monitors labor market trends making headlines worldwide, ensuring you are updated on the latest developments.

On 14 August 2023, the Argentine government took the bold step of hiking interest rates and decreasing the value of its currency. This intervention came a day after the country’s primary elections, adding a layer of uncertainty and volatility to Argentina’s economic landscape.

Unexpected timing

After far-right and anti-establishment candidate Javier Milei obtained the most votes, the results sparked a sell-off of the Argentine peso, shares, and bonds. Anticipating a market backlash, the Banco Central de la Republica Argentina (BCRA) devalued its currency by 20% (to AR$350 per dollar) to reassure jittery investors. The Buenos Aires Timesreports that the devaluation was the largest in a single day since December 2015. The BCRA said the move would help cushion “exchange rate expectations and minimize the repercussion on prices.”

The BCRA added that the peso would be held at AR$350 per dollar until the general elections in October. But many news outlets and think tanks say the devaluation leaves the official exchange rate far from the parallel market rate, which is AR$690 per dollar.

Reuters cites that the financial markets had been betting on a solid performance by a more moderate political candidate. Bloomberg reports that Milei, a representative and economist, supports dollarizing the economy. Riding on a wave of popular discontent, Milei has also called to liberalize the economy, vowed to abolish the central bank, and advocated for sharp spending cuts.

“Investors like Milei’s economic message but fear the execution and institutional risk, considering his lack of power and aggressive style,” a chief Argentina strategist at a financial services company told Bloomberg. “Milei represents uncertainty,” a fixed-income strategist at an investment management firm shared.

With negative international reserves, inflation at over 120%, poverty at 40%, and tight capital controls among its many economic woes, Argentina faces fresh uncertainty ahead of the October elections.

Argentines feel the impact

The recent drop in the peso’s value has affected ordinary Argentines, worsening already high inflation and making everyday life more challenging. The prices of essentials have skyrocketed, putting a strain on household budgets. In fact, consumer goods companies have increased their prices by nearly 10%, further stretching purchasing power.

To make matters worse, supermarkets have confirmed that the supply of goods has been disrupted, making it harder for people to find and afford the necessities they rely on.

Additionally, the devaluation of the peso is expected to have a ripple effect on gas prices, as oil companies expect their costs to rise. This means that Argentines will also face higher prices for transportation and utilities.

Due to economic hardship, the savings of many Argentines have further eroded. The cost of living has reached crisis levels, making it increasingly difficult for people to meet their basic needs. There are concerns that, if the situation worsens, the country could face hyperinflation.

What our Market Monitor says

Our Market Monitor report offers a sobering analysis:

1 January to 1 June 2023. During the first half of the year, Argentina alternated between Levels Two and Three (out of six levels of volatility), with an average exchange rate movement of 39.9%. Level Two shows dynamic market conditions and an exchange rate movement of over 20% in the past six months. On the other hand, Level Three shows rapidly evolving market conditions and an exchange rate movement of over 40% in the past six months.

15 June to 15 August 2023. From 15 June to 15 August, Argentina climbed to Level Three with an average exchange rate movement of 44.8%.

1 September onwards. Beginning on 1 September, Argentina’s level of volatility rose to Level Four. This level of volatility reflects a sudden, unexpected social or economic event (i.e., the peso devaluation, among other factors) or a currency devaluation of at least 50% in six months. In the case of Argentina, the exchange rate moved by 74.4%.

Our latest salary surveys report that many organizations still denominate salaries in Argentine pesos, keeping the South American country at Level Four.

How Birches Group can help

Argentina’s peso crisis underlines the importance of developing a Special Measures Policy in response to economic instability. Such policies can help protect your organization and employees from economic shocks.

If your organization grapples with the effects of market volatility and needs help formulating a clear Special Measures Policy, our consultants are here to assist you. With their extensive experience and in-depth understanding of emerging labor markets like Argentina, they can provide you with the tools and advice you need to navigate these uncertain times.

References:

Ensuring Equity

BUILDING A SUCCESSFUL HR MANAGEMENT STRATEGY BY ENSURING EQUITY

Written by Kai Donesa on . Posted in Resources.

A discourse is taking center stage in human resources (HR): equity. More than just a buzzword, ensuring equity in the workplace is now a concern across organizations, sparking conversations between HR professionals and business leaders.

But equity is more than just fairness. Equity ensures every employee has equal access to opportunities, resources, and fair treatment. In an era where diversity and inclusion have become the core of corporate values, equity is impossible to ignore. Integrating equity into your organization’s HR strategies is crucial to cultivating employee satisfaction and success.

Additionally, it’s important to distinguish between equity and equality. While equality involves providing the same resources to everyone, equity acknowledges that individual circumstances vary and, as such, an organization should offer the necessary resources to achieve equal outcomes.

Ensuring Equity in the work place
Image source: Robert Wood Johnson Foundation

As organizations navigate an increasingly diverse and dynamic landscape, establishing a fair HR strategy goes beyond ethics and compliance.

This blog post will explore the hot topic of equity, its role in HR practices, and how HR can foster an environment where equity is a reality. Drawing from industry insights and proven systems, the blog article will help guide you toward cultivating a fairer and more equitable workplace.

What is equity?

As an HR professional, you have probably heard the term “equity” thrown around in your workplace. But what does it mean?

Equity is the fair treatment of access, opportunity, and advancement for all individuals. While the term is often associated with pay, equity acknowledges that every staff member has unique needs and circumstances.

Ensuring equity involves customizing resources and opportunities so that everyone has an equal chance of success. According to the Society for Human Resources Management, this includes “identifying and working to eliminate barriers to fair treatment for disadvantaged groups, from the team level through systemic changes in organizations and industries.” For example, providing added training to employees who lack specific skills can be an example of equity.

You might wonder why equity is significant and how it affects your organization. The truth is that equity is the backbone of any successful HR management strategy. Without it, your organization could face many challenges, including high turnover rates, low employee morale, and even legal issues.

How vital is equity in HR?

Equity in HR is more than a matter of ethics or compliance. It’s a strategic necessity. Employees who feel treated fairly are more likely to be engaged and productive. They are more likely to stay with your organization and contribute to its success.

A lack of equity, on the other hand, can lead to a toxic work culture. Employees who feel they are not treated fairly are more likely to be disengaged and unproductive. They are likelier to leave your organization, leading to high turnover rates and recruitment costs. Moreover, a lack of equity can also expose your organization to legal risks, as it could potentially violate anti-discrimination laws.

Another reason ensuring equity is vital in HR is that it helps attract and keep top talent. Job seekers are not just looking for a paycheck. They are looking for a workplace that values diversity and inclusion and treats all employees fairly. By ensuring equity, you can make your organization a more attractive place to work.

Ensuring equity in the organization is vital as the workplace constantly evolves. How can organizations support equity when their staff is dispersed across various locations, both locally and internationally? How do they ensure equal opportunities when most staff opt for remote work instead of coming to the office?

HR plays a crucial role in implementing policies and practices that promote fair treatment and challenge systemic bias. They must create an environment where every employee has a chance to succeed regardless of their background.

How do I build Equity into our HR strategy?

Building equity into your HR strategy may seem daunting, but it doesn’t have to be. Here are some steps you can take to ensure equity in your organization:

Assess your current situation. Are there any areas where some employees are treated less favorably than others? Are there any policies or practices that could potentially discriminate against certain groups of employees? Thoroughly auditing your HR processes can help. Collect and analyze relevant data to identify any equity issues. Once you have identified these concerns, take action to address them.

Develop a clear policy on equity. Should individuals in the same job receive similar pay rates, regardless of their location in vastly different markets? Alternatively, should compensation be determined based on what the organization considers fair and competitive within the specific market where the employee is situated? Your policy should clearly articulate your organization’s dedication to equitable treatment for all employees, set up parameters for addressing and rectifying potential equity concerns, and emphasize the significance of communicating this policy to all employees while offering training in equity and diversity.

Implement fair HR practices. Promoting equity requires an integrated approach where every individual feels valued and heard. This involves creating an environment where diversity is celebrated and employees are given equal access to opportunities through unbiased recruitment processes, proper compensation structures, and inclusive workplace policies. Remember, the goal is not just to treat everyone the same but to give everyone an equal opportunity to succeed.

Communicate your targets and share your progress. Set clear, measurable goals for equity, and track your progress towards these goals. Be transparent about your progress and any challenges you are facing. Most importantly, set up transparent communication channels that allow for open dialogue about organizational decisions, fostering trust and empowerment among staff members.

Promote the importance of equity. Make sure that your organization’s leaders and staff are aware of the benefits of equity and why it is essential to success. Remember that equity is an ongoing commitment that requires continuous monitoring and improvement. By promoting an environment of fairness and respect, you can ensure that your people can thrive and contribute meaningfully to fulfilling the organization’s mission.

How Birches Group can help you ensure workplace equity

At Birches Group, we understand the importance of equity in HR. That’s why we’ve developed Community SkillsTM, a platform and tool that can help you ensure equity in your organization.

Community SkillsTM is designed to help assess your people’s skills and knowledge growth. It allows you to create a skills profile for each employee, which can aid in finding skills gaps and developing learning & development plans.

In addition, the platform offers benchmarks for various roles and functions to better ensure fair compensation for all employees. By using Community SkillsTM, you can ensure that all your employees are given an equal opportunity to grow and succeed.

Equity is a crucial factor in building a successful HR management strategy. It’s not just about treating everyone the same, but about giving everyone an equal opportunity to succeed. By understanding equity, recognizing its importance, and integrating it into your HR practices, you can create a workplace that is fair, inclusive, and conducive to success.

Contact Birches Group today to learn about our Community SkillsTM platform and request a demo.

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