20/12/2022
Are you ready to face the inflation & currency devaluation impact on peopleās pay and employment -related cost budget in 2023?
Sounds like an important question you need to think carefully and wisely of it!
What a tough economic situation that pressing everyone, whether being an employer or an employee, it is very important to understand how should we manage such unpredicted inflation and measure its impact on business budgets and peopleās income negatively.
Letās start by not over analyzing these economy dynamics and will leave that to the experts, yet after spending 25+ years dealing with pay practices, rewards packages and employment cost matters, I can simply advise that It is the time to focus on the TOTAL INCOME rather than the SALARY INCREASES for the sake of establishing a win-win business relation between Companies and its people.
It could be described as a changing mind set approach of both parties as, companies cannot afford continuous matching or beating of the rapid increased cost of living and actually they shouldnāt do as even governments are waiving several kinds of subsidy across all basic living items , yet this is the fact most of employers experienced nowadays and cannot do anything about except looking in their bills and operating cost wisely and efficiently to maintain producing products and services sustainably.
This is the time you must invite your HR / Total rewards expert(s) and Internal communication expert(s) to the table. It is important to work patiently and wisely on shifting the mindset of people towards INCOME ā DRIVEN more than SALARY-DRIVEN mindset which is the base feeling and acting as partner in business rather than employee. Also, seeking job security and getting paid decent salary will no longer be affordable in such challenging times.
HOW THIS WOULD BE ACHIEVED?
Total Reward Experts (internal or external) can provide you with several solutions that will help you -as employer- to find the right balance between businessā results and peopleās income, such as Increase variable part of the pay, pay cost of living allowances, profit sharing, transform some non-cash benefits into cash benefits, ( 3-Ys approach-You, Your Family and Your Future), etc. yet the most important part will be how to lead the mind set of business and people towards partnership model
Finally, it is not only how effective, competitive or attractive your rewards design is, but also how smart, simple and transparent your communication is with your people.
Keep them connected and engaged with what is happening in business and what types of support you need them to do, so everyone acts as a super -engaged partner and flag-up that (one for all and all for one).
I think it is not too late to start working on such new approach, wishing you all a successful closing for 2022 and excellent starting for 2023!
www.highreturngroup.com
A World Class Advisory For Aspiring Businesses High Return Group is a fast-growing HR and organizational transformation consulting firm. Founded in Egypt by Tarek Moussa, Ahmed Fahmy and Wael Abou ElNour, bringing in the wealth of 30+ years of expertise in leading different positions and functio...
