Com­pen­sa­tion chal­lenges

Business monthly (Egypt) - - EVENTS -

“What hap­pened re­cently, on Nov. 3 with the Cen­tral Bank of Egypt float­ing the Egyp­tian Pound, re­sulted in an up­ward ad­just­ment of sev­eral reg­u­lated prices, in ad­di­tion to the di­rect ef­fect of cut­ting sub­si­dies on petroleum prod­ucts. This re­sulted in an in­crease in the prices of in­land trans­porta­tion and sev­eral core food items, such as meat, poul­try, milk, cheese, and oil,” said Emad Nasr, hu­man re­sources di­rec­tor, Le­cico Egypt at a Jan. 12 meet­ing of the AmCham Hu­man Re­sources Com­mit­tee ti­tled “2017 Com­pen­sa­tion Chal­lenges.” Nasr was joined by Karim Youssef, hu­man re­sources head, Com­mer­cial In­ter­na­tional Bank; and Ner­mine Fawzy, Ex­ec­u­tive Di­rec­tor – Global Tal­ent & Op­er­a­tions, ITWorx. The re­duced spend­ing power of the pound has be­come a se­ri­ous con­sid­er­a­tion for com­pa­nies look­ing to re­tain their top tal­ent.

When de­sign­ing their com­pen­sa­tion pack­ages, com­pa­nies have to take six ma­jor fac­tors into account: The pack­age must be le­gal, cost/ben­e­fit ef­fec­tive, mo­ti­vat­ing, eq­ui­table, se­cure and ad­e­quate. A well-de­signed com­pen­sa­tion pack­age helps to at­tract, mo­ti­vate and re­tain tal­ent in the or­ga­ni­za­tion, said Nasr. Hav­ing a vari­able com­pen­sa­tion pro­gram to re­tain em­ploy­ees is very im­por­tant,

Ethiopia, one of the con­ti­nent’s fastest-grow­ing economies, opened its door to in­vest­ment through a com­modi­ties ex­change that was opened nine years ago, said Er­mias Eshetu, CEO of the Ethiopian Com­modi­ties Ex­change. “Now we have 1,000 traders and $1.3 bil­lion worth of com­modi­ties are traded ev­ery day,” mainly cof­fee beans and sesame seeds. Eshetu looks to Amer­ica’s 120-year-old Chicago Mer­can­tile Ex­change as a model. “There are lessons to be learned from the Chicago ex­change, how they con­nected to in­dus­try and their outreach,” said Eshetu.

Qalaa Hold­ings’ Khazin­dar said do­ing busi­ness with Africa on the ground re­quires friendly pol­i­tics, in­clud­ing di­a­logue with the lead­ers of African coun­tries, and an open mind. Busi­ness lead­ers across the con­ti­nent should re­al­ize that they have much to learn from each other. “Ethiopia has a com­modi­ties ex­change, Egypt doesn’t have one now. Kenya is a pi­o­neer in mo­bile money pay­ments, Egypt is still try­ing to break into it,” said Khazin­dar. “We can’t be ar­ro­gant. We all have to learn from each other.” added Fawzy, not­ing that com­pen­sa­tion in gen­eral rec­og­nizes and re­wards an em­ployee’s con­tri­bu­tion to the com­pany’s pro­duc­tiv­ity, prof­itabil­ity and qual­ity. Hav­ing a vari­able com­pen­sa­tion pro­gram helps rec­og­nize those em­ploy­ees who have helped to make the big­gest con­tri­bu­tion to the busi­ness suc­cess. Youssef noted that it is also im­por­tant to in­clude the em­ploy­ees when man­agers are con­duct­ing the com­pany’s per­for­mance ap­praisal. This helps the em­ploy­ees to iden­tify their ar­eas of growth ei­ther in their cur­rent po­si­tion or in the prepa­ra­tion for their fu­ture roles. Per­for­mance eval­u­a­tions are mo­ti­va­tional for em­ploy­ees’ per­sonal learn­ing, growth and de­vel­op­ment.

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