Are you being paid what you are worth? Take-home salaries must be addressed to ensure that people earn what they are worth, says Nazlie Samodien, SA Rewards Association (Sara) Exco member.
“Some salary structures are structured to ensure that the employee gains significant financial rewards; others are not. Job seekers need to understand whether the company they are applying to is offering a basic pay and benefits or a total package (cost to company).
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“Take-home pay can vary depending on how the company’s remuneration is structured. I’ve seen job seekers earning a basic salary of R15 000, for example, being offered a total package of R20 000.
“They are under the impression that they are being offered an increase of more than 30 percent without knowing that they must now pay for all the benefits from the total package that is being offered.”
According to Samodien there is no rule of thumb on what to ask for on remuneration, it depends on the seniority of the role, whether the applicant has scarce skills, the availability of variable remuneration such as commission and the level of experience.
There are a number of things that employees or job seekers need to take into consideration before accepting a salary offer.
The first is to establish whether or not there is variable pay such as a commission and how the company structures the commission scheme. “I would advise potential employees to ask what the average commission payments have been with other employees in the role over the past six months,” says Samodien. “This will then put them in a better position to understand what measures are used to calculate commission and how difficult or easy it will be to earn.”
Consider total earnings, which incorporate any other incentives provided by the business such as bonus payments or long-term incentive schemes. Employees can be worse off if they don’t consider these variable pay elements over the short and long term.
“Depending on what candidates are sacrificing in their current roles they may want to negotiate this on appointment,” says Samodien. “For example, if they are eligible for a bonus with their current employers and the payment is imminent, they can negotiate an on-appointment bonus with the new company. It is also worthwhile asking the new company for a mock payslip so that it is obvious to see what will be paid into the bank account once all the deductions have been made.
“Successful candidates may need to do a lot of travel and a company car or fuel card may need to be factored in,” says Samodien. “Then there is medical aid, retirement plans and income protection benefits for employees in the event of death or disability. It is worth asking what the returns on the retirement funds have been over the past five years.”
In addition, it is important that applicants establish the aspects of work-life balance that they need to thrive. Many organisations offer gyms, crèches, wellness centres and more.
“Some employers have outstanding recognition programmes that are linked to performance and could include overseas trips.”
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