Tue, 17 Sep 2019

Top 5 questions about salaries answered

News24
23 Aug 2019, 23:43 GMT+10

Many employees have unanswered questions about their salaries, wonder whether they are getting paid at market-related levels and how their benefits compare.

The South African Reward Association (SARA) often receives questions related to issues regarding salaries, bench-marking and benefits.

This is according to Muhammed Goolab, executive committee member of SARA. He shares the top five questions employees usually want answered.

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How are salary increases determined?

Some of the factors that employers use to determine salary increases include affordability, business performance, union agreements, industry trends, as well as salary market movements.

It is for these reasons that salary increases aren't always aligned to inflation and macro-economic trends, although both these factors are considered when determining increases.

How much could I earn when I reach my potential?

The rates of pay for various roles are determined by market demand. Organisations pay employees for the job they perform at the level they are in within the business.

"As an employee masters a role or discipline, they are often promoted to higher levels with increased responsibilities," says Goolab.

"This is usually reflected in an increase in pay. As you master a role or discipline, you should find yourself in the upper end of the salary range for that job."

Why do my friends get paid much more for doing the same work I do?

While job roles may seem similar, several factors determine an individual's pay level.

Different industries, for example, pay at different levels for the same skill, while some companies pay premiums for skills that they place more value on.

This, combined with factors such as affordability and the differences in an individual's performance, can all contribute to varying pay levels for similar roles.

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