Good Bye to Annual Salary Increases

11/04/2017 8:00 PM

Zimbabwean companies to a large extend have now realised that increasing fixed remuneration like basic salaries and allowances is a risky affair. The majority of companies are on the brink of collapse as a result of poor judgment when it comes to managing remuneration. Others have adjusted salaries haphazardly resulting in unsustainable wage bills. Others have not necessarily increased salaries but have increased headcount haphazardly resulting in the same net effect; a wage bill that is not sustainable.



The biggest challenge facing many organisations is changing the mind-set of both management and employees; especially the Unions. I am not sure anyone normal will ask for a salary adjustment in this current environment. Unfortunately unreasonable people are everywhere and they are found in abundance in formal organisations. It is surely abnormal for an employee or workers committee or union to ask for an adjustment to their salaries when they have not been paid for months and in some cases for years. Why would normal people waste company resources and time trying to bargain for something that they know does not exist now and even in the short to medium term.



 


This is misguided for a country that is struggling to even pay civil servants and catastrophic for individual companies. It is the highest level of irresponsibility for any leader or executive to borrow in order to pay wages. There are companies that are borrowing to pay salaries hoping that their goods or services will be bought by simply paying employees. If you are in charge of any organisation and all the value you are creating is being consumed by employees through salaries you must close the company in shame. In the current economic circumstances and in the foreseeable feature, it’s not ideal to adjust salaries upwards at all.



Memory Nguwi is an Occupational Psychologist, Data Scientist, Speaker, & Managing Consultant- Industrial Psychology Consultants (Pvt) Ltd a management and human resources consulting firm. https://www.linkedin.com/in/memorynguwi/ Phone 481946-48/481950/2900276/2900966 or email: mnguwi@ipcconsultants.com or visit our website at www.ipcconsultants.com


Memory Nguwi
Super User
This article was written by Memory a Super User at Industrial Psychology Consultants (Pvt) Ltd

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