Employee remuneration governance: Missing piece of the puzzle

Employee Relations

Dr Request Machimbira

A workplace is a productivity theatre where a fundamental truth reigns supreme — employees crave a fair return on their service, a quid pro quo that acknowledges their toil.

This primal expectation is the heartbeat of every organisation and the underlying melody that harmonises the rhythm of productivity.

As the venerable adage goes, “A fair day’s pay for a fair day’s work.”

It is a simple yet profound principle that has stood the test of time.

Conversely, employers, the custodians of the purse strings, expect an optimum return on their investment, a symphony of productivity that crescendos into sustainable growth.

This dichotomy of expectations has birthed a timeless crisis, a tug of war between two vital stakeholders locked in a delicate dance.

The employee expects a slice of the pie, while the employer seeks to optimise the recipe for success.

This paradox begs a few more questions, yet the answers are neither compelling nor persuasive.

Caught in the crossfire of this existential debate, I, the arbiter, find the employer more culpable.

Why? Because they have the responsibility to create a fair, transparent and equitable compensation regime.

Anything short of this is a dereliction of duty and betrayal of the trust reposed in them by their most valuable asset — their people.Does your organisation have a job evaluation policy?

If not, your organisation is guilty of a human resource (HR) governance offence.

A policyless job evaluation system is akin to a ship without a rudder; it is susceptible to the whims of capricious decision-making.

It is a recipe for disaster and a ticking time bomb waiting to unleash a maelstrom of discontent.

Job evaluation policies provide a framework and a guiding light that illuminates the path to fair compensation.

They answer critical questions: Which system to use? What compensable factors to choose?

Who should sit on technical committees? What are the processes that need to be followed?

Without this framework, chaos reigns supreme, and the loudest voice often becomes the only voice that matters. We need more orderliness and less noise. Systems create order.

In the absence of a job evaluation process, all answers are correct and none are correct.

It is a case of “every man for himself”, where the squeaky wheel gets the grease. This is a dangerous proposition.

Clearly, not all answers are correct.

It is a recipe for mediocrity, where talent is neither recognised nor rewarded fairly, or at least systematically.

The absence of a job evaluation policy creates a vacuum and an eerie silence that screams of neglect.

Unfortunately, organisations are not insulated from the consequences of this vacuum. It is a breeding ground for discontent and a fertile soil for grievances to take root. Employees need to be educated on the provisions of an organisation’s job evaluation policy. The workplace is a graveyard of emotions; do not make things worse.

Cure your culpability as an employer; take proactive steps to educate and communicate with your people.

Further, do you have a board-approved salary structure?

If not, your company is guilty as charged.

A salary structure without board approval is a governance breach.

It is a ticking time bomb waiting to unleash a whirlpool of arbitrariness.

It is fertile ground for chief executive officers and finance directors — often conflicted by their own biases and interests — to play God.  Governance demands critical principles, fairness and transparency. On the part of a board, not having an approved salary structure is an assault on the oversight role.

Board HR committees need to provide leadership and oversight on compensation matters.

A salary structure minus a job evaluation system equals guesswork.

Having thumb-sucking employee salaries is medieval, if not Stone Age.

Organisations need to modernise compensation practices and HR professionals should step up to the plate.

In conclusion, the delicate priorities of job evaluation and remuneration governance require a symphony of transparency, fairness and accountability. It is time for employers to take responsibility for creating a fair and equitable compensation regime.

It is also time for HR professionals to come to the party and champion best practices. The workplace is a grand stage; let us put on a show that celebrates talent, recognises hard work and rewards excellence.

Dr Request Machimbira is the executive director of Proficiency Consulting Group and International Wellness Institute. He writes in his personal capacity. For feedback, email request @proficiencyinternational.com or phone +263772693404.

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