Employees optimistic about pay rises despite downturn
06 May 2009 8:15am
With nearly four in five employees believing they will receive a pay rise in the next 12 months - and more than a third also expecting a bonus - employers must be open and realistic about remuneration this year, says Randstad CEO Debra Loveridge.
The Randstad 2009 Employment Trends Report says that despite the economic downturn, 78 per cent of workers in the Asia-Pacific region remain optimistic about their remuneration.
Some two-thirds (65%) expect a pay rise of up to four per cent and almost a third (30%) expect their pay to increase by between five and nine per cent.
According to Loveridge, it's vital for organisations to use the months ahead to re-set expectations and be honest, open and realistic when it comes to remuneration.
Employees should see their salary aspirations as long-term goals, she says, and look beyond 2009 because remuneration might be constant for the year ahead across most industries.
Offer a range of incentives
Randstad's director of people and development, Victoria Bethlehem, says cash-strapped employers should have a range of incentives on offer. These might include:
subsidised childcare, gym memberships and health/life/income insurance;
personal interest and recreation allowances;
training and development programs;
inclusion in stretch programs and special projects;
allocation of 'free leave' days per annum;
mentoring, coaching and management programs;
flexible working arrangements;
contribution to/sponsorship of employee endorsed charity groups; and
university and further study support programs.
Employer branding focus turns inwards
In recent years employers have approached employer branding as a way to attract and retain talent, but they're now focusing efforts inwards to offer employees a sense of belonging and belief, Loveridge says.
Culture, values and reputation, she says, operate simultaneously over the long term to create an internal and external employer brand. "Where an organisation remains true to its values, a positive reputation will naturally follow."
To build a strong brand, she suggests that employers:
give people the opportunity to have their say and welcome their feedback;
action their ideas where possible;
communicate internal career opportunities available within the organisation;
hold regular formal and informal performance discussions and set goals with each member of the team;
recognise terms of service and encourage long-term career growth and professional learning;
be true to the organisation's culture and values. Extend them through everything the company does - communication, training and corporate social responsibility initiatives;
be real about your reputation and undertake market research. What is your current reputation? What do you want it to be? What steps must you implement to strengthen the two?
remember that reputation is just as important for internal stakeholders as it is for the wider industry.