Articles

From SA’s largest Remuneration and Reward Consultancy

2019 is already proving to be a very interesting year both economically and politically, and we are barely past the first quarter mark. With unpredictable days ahead of us, it is now more important than ever to ensure that sustainable Remuneration and Reward solutions, in line with an organisations economic, social and environmentalStrategies, are considered to ensure long term value for all stake holders.

21st Century, South Africa’s largest Remuneration and Rewards Consultancy, has harnessed the collective expertise of its Directors to provide some tips and guidance to navigating the sometimes-tricky Rewards and Recognition landscape in 2019. Below are their Six Top Tips to consider when it comes to tangible Rewards and Recognition strategies.

Top Tip 1.Corporate Governance - its impact on your organisation as a whole.

Never before has the focus on remuneration governance been more prevalent. Especially in light of King IV getting substantially closer to full disclosure reporting and the media’s unwavering focus on corruption and the Inter-Ministerial Oversight Committee on Remuneration for SOC’s (State Owned Companies). It is vital that organisations align to King IV in terms of ethics and good governance within the SOE guidelines for particular sectors.

Top Tip 2.Skills Audits – Are the vital skills needed to run your organisation up to scratch?

The amount of skills and competency audits are on the rise as organisations attempt to get a sustainable balance between superior performance vs employee salary and wage bills. This is the cornerstone of ensuring that your work force is optimally skilled and staffed to deliver on promised strategies.

Top Tip 3.Engagement of talent –So much more than a simple pay check.

Organisations need to adopt a new way of thinking when it comes to the Total Reward structure offered to engage and retain talent. Non-remuneration elements need to be considered across a much broader spectrum to offer an effective Employee Value Proposition. The organisations culture as a whole requires continuous investment and a closer focus on Human Capital ensuring a sustained competitive advantage when it comes to securing best talent.

Top Tip 4. Addressing the Inequality/Wage gap –Accepting that there are no quick fixes.

With South Africa as one of the front runners when it comes to being one of the countries on a global scale with the highest inequality/wage gap, it important to accept that this challenge is going to be a trend that sticks around for some time, and needs continuous re-assessment in terms of gender, race, demographics and so forth.

Top Tip 5.Change Management and Transformation Management – A growing trend that requires consideration.

Three main drivers for change management capability are the driving force behind this growing trend,namely:

  • The continuously changing inter-generational dynamics of the work force.
  • The considerable impact that the changing nature of Data or BIG DATA is having on decision making.
  • The changing nature of how we operate in terms of IoT (Internet of Things).

Changing technologies, unstable economic conditions, the rise of AI (Artificial Intelligence), resource planning and restructuring in the Public Sector space within South Africa is also having a dramatic impact on Change and Transformation Management and are all important factors to keep in mind.

Top Tip 6–Agile Organisational Structuring – Adopting a completely different approach.

A rapid move away from traditional functional structure design to a design based on Agile thinking is a massive trend right now. Agile offers a team-baseddecision-making structure that is being globally adopted across sectors.

In South Africa we are seeing more and more effective streamlining of business processes that expedites the speed to market delivery to satisfy an increasingly demanding and informed client.

A whole new complexity in designing jobs, including how jobs are profiled and consequently how employees are remunerated has been created due to the ease of access to information for employees. They are now able to effectively engage with their organisation on a 1-on-1 basis eliminating the need for union membership.

A report published in January 2016 by The Work Foundation predicted that by 2020 70% of the workforce will have adopted mobile working – a trend we are seeing increasingly more of already.  The result? Organisations are becoming more and more output focussed and less so on input, thus we no longer design for “bums-on-seats” but for customer orientation and competitive advantages.

With a proficient team of over 60 specialists, servicing over 1700 clients, 21st Century is a future orientated specialist Remuneration, Organisation Design and Change Management consultancy, with national and international capability. A committed transformational approach has earned them a B-BBEE level 2 rating which they have maintained since July 2015. Sustainable Remuneration solutions are supported by their comprehensive audited salary survey database and a wide range of web-based Remuneration systems and Remuneration training courses.

They inherently understand that Remuneration is complex. They are committed to making it simpler for you to find your way around.