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Inside this issue

  • Five steps to consider when determining annual increments
  • Justifying executive pay
  • Focus on African surveys
  • Update on global alliances
  • Introducing PE Paterson Plus

Five Steps To Consider When Determining Annual Increments

Pay Increases Don't Have to Match Market Averages.

A challenge confronts the HR executive when he or she is asked to recommend pay increases for the next salary cycle.

We suggest that there are at least five steps that merit careful consideration as part of the process.

Step One – confirm market alignment

Benchmarking of wage rates against the market should ideally be undertaken with reference to the middle of the salary cycle – for example, as at 30th September each year, when salary increases are granted on 1st April of the following year.

If the rates are in line at the middle of the salary cycle, this creates a lead period when they will be ahead of the market and a lag period when they will be behind the market – whilst on average being equal to the market for the whole year.

Justifying Executive Pay

Levels of executive pay continue to raise contentious comment. The stricter governance controls implemented in recent years now require disclosure of levels of executive pay as well as the policy and rationale on which it is based. Justifying Executive Pay has thus become an important issue for all those charged with responsibility for establishing both executive and non-executive pay levels.

Focus on Africa Surveys

Focus on Africa Surveys
Our extended focus on providing salary survey information for a range of African countries is making good headway and we expect to release our Zambian survey in July/August and our Mozambique survey in November this year.

Through our joint venture with Ernst & Young, we are also developing insight into salary levels in Mauritius, Madagascar, Seychelles, Angola, Zimbabwe and Namibia, a country which we have already covered for 18 years.

Plans for 2016 include introduction of a salary survey covering Mauritius, Madagascar and Seychelles.

Through our relationship with other partners, we also cover Botswana and Lesotho, and there is potential for us to add East African nations, such as Kenya and Tanzania, to our portfolio.

Update on Global Alliances

As part of our on-going strategy to provide clients with cutting edge expertise and high levels of service, P E Corporate Services (PECS) enjoys carefully selected alliances with international global leaders in the compensation arena. Our joint venture arrangements were reviewed for relevance during the past six months and selective changes were made in three areas.

Towers Watson:

Our twenty year-plus working partnership with Towers Watson was formalised into a structured strategic alliance during January. Towers Watson is one of the world's largest professional service organisations and a global leader in the remuneration and benefits field.

As part of the alliance, Towers Watson and PECS will work together on the design, communication and implementation of HR programmes for companies - covering pay, compensation, reward and remuneration. In addition, they will co-operate on the design of change management and communication strategies for organisations undergoing major change, including mergers and acquisitions as well as on organisational workforce strategies related to capabilities, composition and culture. Towers Watson's Data Services products and services, and its Global Grading Methodology, is available to PECS' clients in South Africa as part of this agreement.

Introducing PE Paterson Plus

Introducing PE Paterson Plus Web-Based Job Grading

As an exciting new product development, P E Corporate Services has recently launched PE Paterson Plus, a web-based grading tool using the traditional Paterson job grading methodology. Being linked to the most popular job evaluation system in use in South Africa, the development will be of benefit to a wide range of organisations across most industry sectors.

The new system combines the best of the traditional Paterson job grading system with an objectively defined sub grading methodology. It provides multi-site, multi-user access to a secure password protected, individual client base. A specific development of the system is that it creates clear records of rationally determined grading results for each job description. Results can be downloaded in Excel format and there is also a PDF grading sheet that can be used as part of the Grading Committee Minutes.

In the Press

Martin and Melanie recently broadened their horizons by engaging in an online chat with Destiny Magazine.

The topic: organisational design, pay benchmarking, incentive schemes, and corporate governance.
The verdict: loads of fun and a great networking success!


The Truth About Environmental Sciences Careers in South Africa and Africa

Date: 11 June, 2015
Time: 07:30 – 11:00
Venue: 1 Ettric Road, Forest Town, Johannesburg
Topics Include
  • Talent acquisition. The attraction, employee engagement and retention trends in the Energy and Environmental industry
    • Creating transformation in this industry covering succession planning as well as capacity and capability needs.
    • Using talent analytics to determine the efficiency and effectiveness of human resources in your organisation
    • An update on learnings from the recent Africa Indaba
    • Remuneration trends in the Environmental Sciences industry
RSVP: 2 June 2015 - louisec@pecs.co.za

Louise Crewe
Business Development Consultant
Tel: +27 (0) 12 345 1065 | Fax: +27 (0) 86 618 3472
Mobile: +27 (0) 72 676 9460 | Email: louisec@pecs.co.za
Complimentary Pan Africa Survey Forum - 27th May 2015
Xenophobia within South Africa, the increasing sophistication of African nations, and the commercial potential of the continent are trending topics within our business sector.
Join us for a forum in which we discuss these and other findings from the P E Corporate Services recent Pan African Survey.
Date: 27th May 2015
8h00 - 10h30
Venue: Johannesburg Country Club, corner Woodlands Drive and Lincoln Street, Woodmead.
Topics Include:
  • How Xenophobia Impacts Pay Strategy - Today and Tomorrow
    Martin Westcott, Executive Chairman, P E Corporate Services
  • Pay in Africa - Latest Trends and the 2015 Survey
    Lionel van Schalkwijk, Regional Manager KZN, P E Corporate Services
RSVP: 24th May 2015 - louisec@pecs.co.za
Louise Crewe
Business Development Consultant
Tel: +27 (0) 12 345 1065 | Fax: +27 (0) 86 618 3472
Mobile: +27 (0) 72 676 9460 | Email: louisec@pecs.co.za

Upcoming Leadership® Courses

Effective Influence - the undervalued organisational resource
  • Johannesburg: 9 - 10 June
  • Cape Town: 23 - 24 June
In association with Louis Allen South Africa.
Professional Management Leadership™
  • Johanesburg: 20-23 July 2015
Effective Management Leadership in Practice™
  • Johannesburg: 11-14 August 2015
Gretha Brews
Skills Development Administrator
Tel:+ 27 (0) 11 442 4334 | Fax2Email:+ 27 (0) 86 519 8956
Email: grethab@pecs.co.za
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