Page 27 - DRG HR HANDBOOK- Nikita Pillay

Some businesses have remuneration committees in sector and choose the position within that market for
place for this purpose but knowing where to start can be which you strive, e.g. median, upper quartile, etc.
difficult. Salary surveys can be useful for benchmarking
The government has made significant changes to
at more junior levels, particularly with the volume of data
Employment Equity (EE) reporting requirements
that can be generated when comparing pay for roles
with the goal to improve the accuracy and efficiency
that are common in the marketplace. of collecting data about wage disparities between the

The value of different components of the package highest-paid and lowest-paid employees. This will enable
can differ greatly depending on the employer. Salary the Department of Employment and Labour to identify
wage gaps and set benchmarks for different sectors.
benchmarking considers all aspects of remuneration to
ensure an accurate reflection of the package is given. Employers must ensure that they have policies and
mechanisms in place to resolve remuneration gaps and
Importantly, salary benchmarking allows companies
avoid unfair discrimination, real or, perceived. If there are
to make comparisons of these figures between a large
disproportionate differences in remuneration that are not
number of businesses. As part of the analysis, research
justifiable, they need to take measures to progressively
can determine the overall mean, as well as lower and
reduce such differences or face possible consequences
upper quartiles, of staff members overall compensation
in the years to come. Failure to do so may be costly
packages.
as employers may receive hefty penalties should the
In developing a suggested pay-line and salary scale Department of Labour conduct an equal pay for equal
structure the organisation’s policies on remuneration work audit.
must be taken into consideration, such as skills
With the correct role profiling and salary benchmarking
shortages and premiums, competitive position, review
technology, we are able to aid in helping you build
dates, lead/lag policy, etc.
consistency across the organisation. It is our pleasure
One needs to identify the market segment with which to assist companies in these critical areas of attraction,
the organisation should compare itself, e.g. industry motivation, and retention of their staff.

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