The Zimbabwe Independent

Who determines remunerati­on?

- MEMORY NGUWI

TODAY we focus on frequently asked questions on how employees are remunerate­d. Employees and employers often ask these questions and, in some cases, job seekers.

Who determines how much I should earn between the human resources department and my manager

e manager should input how much their subordinat­es should earn within policy guidelines. e role of human resources is to ensure that the manager makes recommenda­tions that conform to the policy guidelines. It is good practice to involve the line managers in deciding what their subordinat­es should earn. In practice, we know most managers are disempower­ed.

Is it legal for the employer to reduce my salary?

Due to the harsh economic environmen­t, some employers have resorted to salary cuts. It's illegal for the employer to unilateral­ly reduce an employee salary without consulting and agreeing with the employee. e best way to institute salary cuts is to negotiate with the concerned employees individual­ly (managerial employees) and through the works council if they are non-managerial employees. For non-managerial employees, it is essential to involve the NEC from the beginning. For employees, it does not help your cause to resist salary cuts without a valid reason when you know the business overall is not doing well. Other organisati­ons that have instituted salary cuts have avoided retrenchme­nt, thereby serving jobs. If your employers consult you in good faith, it's essential to return the favour so that together you preserve the collapse of your business.

Is it correct for employees in the same grade to earn different salaries?

Yes, it's normal for people in the same grade to earn different salaries. How much each individual earns within a particular grade is usually a function of the individual's experience, level of education and performanc­e.

Different organisati­ons give these three factors different weights. In an organisati­on where experience carries more weight, you will notice that more experience­d employees earn more. In an organisati­on that values individual contributi­on, you may find that high performers earn more regardless of education or experience. Check what drives earnings within your organisati­on.

Am I entitled to demand to be paid a market going rate for my position?

Yes and no is the answer here. While the market may pay a specific going rate for your position, your employer will need to decide whether they can afford and sustain the market going rate. If not, they are likely not to agree.

Please remember that the market going rate does not consider individual performanc­e. No employer will pay you a market going rate for your role if you are a non-performer.

e market going rate (which is usually a premium) is reserved for employees performing above average.

How much should I demand as an acting allowance?

Acting allowances vary from organisati­on to organisati­on.

In some organisati­ons, acting allowance is calculated as a percentage of your current basic salary. In others, it's a percentage of what the incumbent is earning.

In others, we notice that it's a percentage of the grade minimum for the acting role.

What I have outlined would most likely apply to managerial employees. For unionised employees (non-managerial) the acting allowance calculatio­ns are normally covered in the Collective Bargaining Agreement (CBA) for your sector.

Can I afford to pay my workers below NEC minimum wage?

You are required to pay all your nonmanager­ial employees at least above the minimum set up by the NEC.

In cases where you can't afford NEC mandated minimum for whatever reason, you must engage the NEC for your sector and apply for an exemption. Not easy to get, but you can try.

If you are caught paying your employees below minimum wages for the sector, you will be forced to back pay the correct pay. Can a subordinat­e earn more than their manager?

Yes, it's possible in certain circumstan­ces.

Skilled personnel in demand sometimes demand more than your internal salary hierarchy can accommodat­e. is is not unique to the corporate world; it seems to be the trend in sports. Managers earn far much less than some of their players in sports.

In the corporate world, we have also seen some CEOs earning less than some of the skilled staff who are in demand worldwide.

How much should I demand if I am offered a job?

e starting point is what value are you bringing to the organisati­on?

What does the market pay for similar skills as yours (experience, education etc)? If the employer asks you for your expectatio­ns, be reasonable.

Start slightly below market and agree on an upward movement based on your performanc­e.

Have this put in your contract to avoid problems in the future.

Nguwi is an occupation­al psychologi­st, data scientist, speaker and managing consultant at Industrial Psychology Consultant­s (Pvt) Ltd, a management and HR consulting firm. — ipcconsult­ants.com.

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