Friday October 12 2018

Can I ask for a salary review owing to increasing costs?



Moses Ssesanga

Moses Ssesanga  

By Moses Ssesanga

Should an employee ask for a review of their salary in light of changing economic situation such as inflation, tax? What does the process entail? The cost of living is getting high yet my salary remains the same. Bob

Dear Bob,
Most organisations derive their employee remuneration decisions from the reward strategies their Human Resource departments develop to support the delivery of the orgnaisation’s overall strategy. The reward strategy is in turn driven by what has to be done to attract, retain and develop the organisation’s desired talent.
I have previously written on this page that negotiations by employees for a pay rise are always a tricky situation. The employee, on one hand expects their employer to understand that they need a pay rise, given the rising cost of living, and hence implement it. However, in most cases, this is not the realty.
Several reasons make it hard for employers to regularly increase the salaries of their staff as this impacts the organisation’s wage bill. The wage bill is a recurrent expenditure and any increase in salaries affects the whole spectrum of the cost of employment, including the statutory payments like the employer’s NSSF contributions, PAYE, employer’s contribution to the provident fund, where such schemes have been introduced.
The best way for employees to achieve better pay is to innovatively negotiate commissions or bonuses as part of their emoluments. This means that for an agreed target met, achievements over and above such targets are remunerated as commissions or bonuses.

hand and your job as the employee is to ensure that you consistently deliver above the agreed targets and then qualify for the bonus or commissions.
The beauty about such bonuses or commissions is that they are self-paying and hence a win-win for both the employee who has worked harder and the employer, since there is new money created to pay them.

Moses Ssesanga
Head Human Resource
NMG - Uganda
mssesanga@ug.nationmedia.com

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