TOUGH TIMES – 3 KEY TIPS ON HOW TO COMPENSATE YOUR EMPLOYEES BETTER

With the grim petrol price increase prediction of over R3,00 per litre for June 2022, employees are feeling the pinch where disposable cash is rapidly dwindling and are doing everything in their power to try keep their heads above water.

Tanya Tosen

Tanya Tosen
Tax and Remuneration Specialist

FEATURED IN

Employers are feeling the ultimate pressure with the conundrum of how to remunerate employees more effectively to not only retain but also to attract talent into their workforce during these tough times.

Below are 3 key considerations that employers should consider, in adopting leading remuneration practices in the market:

CTC with Flexible Benefits Remuneration StructureThis leading practice allows employees to adjust their selections whereby flexible benefits are offered in the employer’s remuneration structure, whilst maintain the same cost for the employer.

Where increases are at a minimum and cost of living is soaring this structure also allows employees to elect more cash less benefits or vice versa to suit their personal and financial requirements.

Analysis of Benefit Offerings

Remunerating employees to include certain non-cash benefits is only truly effective where these are valued.
It is now crucial that employers re-assess and analyse their benefit offerings to ascertain the following:
Whether money is being poured down the drain with benefits employees do not value; and
Whether the benefits being offered are aligned to market best practice and industry norms or are just a nice to have.

Best price for Benefits

Employers should consider the costs of these benefits and the timing is riper than ever to now obtain competitive quotes for their benefit offerings.
Where employers can obtain lower rates for their benefits, these savings may be passed on to employees in a cost to company structure thereby increasing their cash portion.

With pressures mounting all round and the constant battle of trying to stretch the Rand to go further, there is no better time for Employers to have a pro-active approach to their remuneration and benefits.

With careful planning and adopting some of the above strategies, employers should both be able to control their employee costs whilst compensating employees in a favourable manner to assist in their cash flow.

Employers should act now in assisting their employees as much as possible, whose disposable income has been severely impacted due to the constant rising costs of their basic needs in the form of petrol, electricity and food versus a year ago.

FEATURED IN

CONTACT US

Full Name*
Email Address*
Contact Number*
Subject*
I need assistance with (Tax Legal)*
I need assistance with (Accounting)*
I need assistance with (Remuneration)*
I need assistance with (Expat Tax)*
I need assistance with (Local & Global Work Permits)*
How many years have you been outside of South Africa? (required)*
Is It Your Permanent Intention To Remain Abroad?*
Category of Taxpayer*
Do you have any forms of income besides your employment income?*
Do you have any forms of income besides your employment income?*
Did you receive other worldwide income?*
How many years have you been outside of South Africa?*
Is it your permanent intention to remain abroad?*
Did you receive/make a contribution towards? (required)*
- Travel Allowance
- Retirement Annuity
- Medical Aid
- None
Did you receive/make a contribution towards? (required)*
- Travel Allowance
- Retirement Annuity
- Medical Aid
- None
Do you have access to your own efiling profile?*
Do you have access to your own efiling profile?*
Do you have access to your own efiling profile?*
Where did you hear about us?*
Message*
CAPTCHA
Email
This field is for validation purposes and should be left unchanged.

Kindly note that our offices are closed between 25 December 2024 and 1 January 2025 and as such there will be a delay in our normal expeditious response times. Our teams are taking a short festive season break and will address your query upon their return on Thursday, 2 January 2025.

TOUGH TIMES – 3 KEY TIPS ON HOW TO COMPENSATE YOUR EMPLOYEES BETTER

FEATURED IN

Share to your social feed

FEATURED IN

CONTACT US