RemNetRemNetRemNetRemNet
  • HOME
  • ABOUT
    • About RemNet
    • Committee Members & Executive Management
    • People Analytics Forum
    • Member Companies
  • BENEFITS
  • EVENTS
    • Events List
    • Annual Conference
    • RemNet Connect
    • Special Interest Groups (SIGs)
  • SURVEYS
    • SPEEDBACK Surveys
    • Request a New Survey
    • Historical Surveys
  • RESOURCES
    • Service Providers
    • System Providers
    • Recommended Websites
    • RemNet Gender Tool
  • BLOG
  • CONTACT
  • JOIN

Remuneration Budgets – The Allocation Conundrum

    Home Budgets Remuneration Budgets – The Allocation Conundrum

    Remuneration Budgets – The Allocation Conundrum

    By Kathryn Greene | Budgets | 0 comment | 14 June, 2017 | 1

    In August 2016, I posed the question “Are the days of 3% over?”.  At the time, I was hearing through the members of the New Zealand Remuneration Network that some organisations were considering reducing their remuneration review budgets from the standard 3%.  In that post, I encouraged our membership to think about how they were setting their budgets and consider blazing their own trail rather than following the heard.

    Recent market insight from Strategic Pay, who surveyed 512 New Zealand organisations in March 2017, suggests that many of you put a lot of thought and energy into your decisions this year. The Strategic Pay report highlighted that on average, employees in New Zealand can expect to receive a base salary increase of around 2.2% in the coming year.

    But here is the conundrum of this downward trend, how best to allocate meaningful salary increases with a smaller pot of funds?

    One option is to give everyone the same amount, say 2%. By taking this course of action you might be seen as being ‘fair’. But, in doing so, you risk demotivating your high performers who feel they are due much more than ‘Mr Average’ sitting next to them.

    On the other hand, you could focus your efforts and limited cash on high performers or identified retention risks. But, in doing so, you risk disheartening ‘Mr Average’ who is essential to keeping your business ticking along.

    Perhaps you should focus on correcting past wrongs such as increasing salaries for those below market, or perhaps ‘catching up’ your gender pay gap?

    As with setting your remuneration budget, to solve the allocation conundrum you will need to forge your own way.

     

    Please share in the comments your suggestions for solving this puzzle.

    No tags.

    Leave a Comment

    Cancel reply

    Your email address will not be published. Required fields are marked *

    CAPTCHA
    Refresh

    *

    Recent News

    • Xero’s Rewards Optimisation Project August 4, 2022
    • A focus on Wellbeing and Mental Health September 28, 2021
    • Aftermath of Covid-19 for Remuneration and Benefits August 2, 2021

    Archives

    • August 2022
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • September 2020
    • July 2020
    • March 2020
    • January 2020
    • November 2019
    • October 2019
    • August 2019
    • July 2019
    • May 2019
    • March 2019
    • February 2019
    • November 2018
    • September 2018
    • August 2018
    • July 2018
    • March 2018
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • April 2017
    • February 2017
    • November 2016
    • August 2016
    new-zealand-remuneration-network-footer-logo




    About Remnet
    Benefits of membership
    Events
    Join RemNet
    Sitemap

    Recent News

    • Xero’s Rewards Optimisation Project

      Xero’s largest cost is remuneration and reward and like most companies, Xero

      4 August, 2022
    • A focus on Wellbeing and Mental Health

      This week its Mental Health Awareness Week, and with the Auckland in

      28 September, 2021

    Contact Us

    Email: info@remnet.org.nz

    Address:
    PO Box 9525
    Newmarket
    Auckland 1149
    © New Zealand Remuneration Network 2023
    • HOME
    • ABOUT
      • About RemNet
      • Committee Members & Executive Management
      • People Analytics Forum
      • Member Companies
    • BENEFITS
    • EVENTS
      • Events List
      • Annual Conference
      • RemNet Connect
      • Special Interest Groups (SIGs)
    • SURVEYS
      • SPEEDBACK Surveys
      • Request a New Survey
      • Historical Surveys
    • RESOURCES
      • Service Providers
      • System Providers
      • Recommended Websites
      • RemNet Gender Tool
    • BLOG
    • CONTACT
    • JOIN
    RemNet