September is typically the month when HR departments revise their reward and performance management strategies and budgets for the year ahead. Many are also exploring how to leverage AI, automation and data-driven HR to make these activities more efficient and equitable.

“Annual salary reviews and bonus processes can literally take a minimum of eight weeks to complete,” says Yoliswa Mqoboli, Executive Committee Member at the South African Reward Association, who has first-hand experience in actively developing AI solutions to reduce this burden.

AI-driven analytics and automation can bring the kind of change that HR departments and their stakeholders desperately need.

The HR problem
While many organisations already have repositories of historical reward data, much of this is captured manually and analysed by hand.[1] [2]  AI, automation and data-driven HR promise to take away the pain and simplify the performance review journey for HR practitioners, corporate managers and employees alike.

“We spend most of our time modelling reward data in Excel and chasing feedback on bonus schedules and pay increases; we don’t get to the important stuff, like developing innovative strategies and addressing pay inequalities,” says Mqoboli.

Unrivalled speed and simplicity
AI can support faster data processing, but it isn’t a magic wand. Instead of spending weeks building spreadsheets, AI tools can assist with automating repetitive tasks, such as performing calculations, flagging anomalies or summarising data. However, there is still heavy reliance on humans to input structured data and exercise oversight on the data.

Better insights
The future of AI will also likely disrupt traditional annual performance reviews. There is room for innovative tools that will monitor employee and team performance in real time to provide companies with richer datasets on which to base their remuneration decisions. In turn, employees will have access to current and historical data that would give insights on their developmental plans and improvement areas for succession into next roles.

Talent rescue
Embedding AI analytics into current processes can help HR spot early signs of employee disengagement and turnover risks. This lets them address issues proactively, design recognition incentives, and develop other programmes to drive retention.

Fairness and equality
AI models, through machine learning, can be trained to ignore biases humans naturally stumble into. They can also expose biases in performance and remuneration governance and decision making, helping companies become better employers and more compliant with law. 
​
Time for humans to shine
The biggest transformation that AI-driven analytics and automation bring to the table is that they allow HR practitioners to flex their expertise.
​
With AI taking over the heavy lifting, they can tackle business-critical initiatives that demand human ingenuity and finesse, like developing better reward strategies.

Where is the AI?
Although there are examples of inhouse AI solutions being developed by large South African corporations, Mqoboli says few commercially available options have leveraged AI at all.

“We’re seeing heavy investment in AI-driven HR in other countries, but here it’s still a niche offering,” she says.

No doubt, then, HR departments will want to see more on offer in 2026 so they can move ahead with their transformation.

ENDS

MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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For many South Africans that are formally employed in both the government and private sectors, mid-year marks a pivotal time for mid-year salary reviews and potential raises. It is a time brimming with anticipation and hope, as employees look forward to some financial relief for their hard work and dedication.

However, the economic landscape is a complex and ever-shifting terrain. “Whilst the inflation outlook has improved over the last few months with CPI averaging 3.0% as at April 2025, there’s a lot happening both locally and globally that impacts employers’ ability to meet everyone’s salary increase expectations,” says Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).

She advises that employees manage their expectations by understanding the economic factors at play. This understanding can lead to more constructive and better-informed salary conversations, ultimately fostering a healthier employer-employee relations environment focused on driving much needed productivity for the country.

Know the factors at play
Employers' ability to increase salaries is influenced by several factors, including national and global economic growth prospects, company performance and affordability, as well as skills market trends.

Inflation is expected to remain moderate and within the South African Reserve Bank’s 3-6% target range through 2025/26. However, even with recent cuts, interest rates remain high, making debt expensive for individuals and organisations alike, and leaving both employees and employers under financial strain.

While we dodged the VAT bullet, the increase to the fuel levy will still hit everyone hard, from individual motorists to company and public service fleets. This cost might be offset by expectations of lower fuel prices but will still have an adverse impact on expenses. Additionally, rising food costs due to droughts and other climatic factors will put further pressure on budgets.

Employers will also be hampered by weaker GDP growth than previously predicted, as well as global economic instability fuelled by US President Trump’s on-again-off-again tariffs. Tariffs on South Africa’s trading partners could create unwelcome local inflation, making organisations wary of committing to higher labour costs.

"Considering the present economic circumstances, a balanced approach to salary adjustments is required. The intention is not to undervalue employees but to explore comprehensive strategies for improving the overall employee value proposition in a manner that ensures business sustainability and job security," says Sebesho.

Given these facts, you may need more information to optimise your remuneration package beyond just a salary increase.
 
Take a positive approach
Despite economic pressures, you can improve your odds by taking some simple steps, such as:

• Know your job’s worth - There are many sources of salary information so you can decide if you are being paid fairly, but make sure you use authoritative information from recognised experts, along with considering remuneration policy information from your employer.
• Be understanding - If you do your homework and understand your employer’s constraints, you can approach your salary increase conversation more rationally and constructively, which could help you win a more positive outcome that also helps you retain your job in the long term.
• Show your value - Salary increases are typically based on performance, so now is the time to demonstrate how well you have done personally and your contribution to the organisation’s goals – this might help you get a bit more than you expected.

• See the big picture - Remuneration isn’t just about money but includes benefits and other rewards as well, so review your entire remuneration package and ask about non-monetary or money-saving benefits, including how you can flex your retirement benefits to help offset any immediate financial shortfall without compromising your long-term savings goals.

Keep it real and respectful
While you may be desperate for, expecting or even demanding an above-inflation increase, it is important to be realistic and, especially, respectful during a salary increase conversation.

Employers are also strapped due to economic conditions and understanding their limitations without over-comprising yourself will be appreciated.

Sebesho concludes, "It is essential to expect fair and equitable pay that allows you to participate effectively in the economy. However, understanding both perspectives is crucial for balanced salary adjustment negotiations that ultimately safeguard employment."
​
She invites readers to engage constructively on the topic and to consider broadening remuneration insight through the SARA Thought Leadership Quarterly and the SARA conference (add links to website)

ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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Mid-year is the perfect time to re-evaluate your performance and reward management processes and practices, as this marks the financial year-end for several organisations in South Africa. ‘Many are already reviewing the performances of individuals and the organisation as a whole and could use this opportunity to also reflect on how their reward systems could be improved or developed,’ says Janine O’Riley, Chartered Reward Specialist and EXCO member at the South African Reward Association (SARA). ‘It’s crucial to ensure that these systems truly drive the right employee behaviours in our fast-changing environment.”
 
Beyond financial rewards
“In South Africa, many organisations still use performance ratings and hierarchical structures to evaluate performance and allocate mostly financial rewards,” says O’Riley. “This traditional approach often emphasises individual achievement and measurable outputs, which can lead to a focus on visible accomplishments like meeting sales targets or project milestones rather than equally valuable contributions like teamwork, mentorship, or fostering a positive organisational culture.”
 
Research shows that employees are increasingly motivated by non-financial factors. They seek meaningful work, independence, opportunities to “make a difference”, and earn acknowledgement that resonates with their personal values and aspirations.
 
O’Riley says that by evolving or adapting performance and reward strategies to incorporate intrinsic motivators – such as individual purpose, growth and development opportunities, flexible work arrangements, and personalised reward and recognition – organisations can build deeper engagement with their employees, boost productivity, and build a more loyal, motivated, innovative workforce.
 
Blending intrinsic and extrinsic motivators
Financial incentives will always remain an extrinsic motivator. “Being paid a market related salary and short- and long-term incentives or performance bonuses will almost always have a motivating effect on employees, especially in South Africa with our volatile economic situation,” says O’Riley. She gives the example of a call centre that offers performance-based bonuses that motivate employees to improve service quality, which benefits both employees and the organisation.
 
In contrast, a strong intrinsic motivator could be enabling employees to work independently and empowering them with decision making and ownership. This could, for example, mean allowing them to provide suggestions on continuous improvements or innovation, thereby boosting their daily motivation. 
 
Meanwhile initiatives around employee wellness programmes can serve as both intrinsic and extrinsic motivators. An organisation might implement a reward system that combines financial incentives for meeting objectives with recognition programmes that celebrate community involvement and personal growth. For instance, employees who participate in financial literacy outreach programmes could receive certificates of appreciation as well as opportunities for professional development.
 
How to remain competitive
Organisations should critically review and consider innovating their performance and reward systems. They should aim to embed trust and purpose into their culture and use technology to support these innovations. O’Riley gives two specific suggestions:
 
*             Create a culture of psychological safety, where employees feel comfortable sharing ideas, giving feedback, and admitting mistakes without fear. This is critical for nurturing genuine trust and collaboration, especially in the South Africa context where historical and socio-economic factors influence workplace dynamics.
 
*             Integrate social purpose and community impact into performance and reward systems to significantly boost intrinsic motivation, particularly for younger generations like Gen Z and Millennials who prioritise purpose and social responsibility above financial motivation. Recognising and rewarding contributions that benefit society or align with personal values can deepen engagement, motivation, and loyalty.
 
“Open-minded organisations are experimenting with more holistic performance and reward systems, peer recognition programmes, and recognition of soft skills that support organisational agility and social impact,” says O’Riley. “Ultimately, performance management should be an ongoing journey rather than something to tick off on the calendar.”

ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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In the workplace, the traditional notions of career growth and promotions are being reshaped by the ambitions of Generation Z (born 1997 - 2012) and Millennials (born 1981 - 1996).
 
These younger professionals are shifting the focus from tenure-based progression to more dynamic, purpose-driven career paths, forcing organisations to rethink their reward and promotion strategies.
 
The changing landscape of career progression
“Previous generations viewed career success through the lens of long-term loyalty and hierarchical advancement,” says Deon Smit, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).
 
Today’s young professionals, however, prioritise learning, flexibility and meaningful work. For them, career progression is not necessarily about climbing a corporate ladder. Rather, it’s about acquiring diverse experiences, continuous personal development, and making an impact.
 
A study by McCrindle revealed that 63% of Gen Z professionals consider opportunities for advancement as a key factor in their workplace decisions. “However, instead of waiting years for a promotion, they expect clear, merit-based progression pathways that reward skills, innovation and contributions rather than time served in a role,” says Smit.
 
Furthermore, job-hopping is no longer considered a red flag but a strategic move for exponential progression. Gen Z and Millennial professionals in South Africa change jobs regularly, not due to a lack of commitment but in search of better growth and career opportunities, better work-life balance, and organisations that align with personal values.
 
What younger generations expect from employers
Gen Z and Millennials are not just seeking a salary; they want to work for organisations that align with their personal values. According to research by Human8, 71% of South African Gen Z employees expect brands and employers to contribute positively to society. Also, 77% are willing to engage more with organisations that prioritise inclusivity and social responsibility.
 
Employers who fail to integrate purpose-driven initiatives into their corporate culture risk losing valuable young talent to competitors who do. Organisations must look beyond traditional corporate social responsibility and embed social impact into their daily operations, whether through sustainability efforts, ethical business practices, or employee-driven community projects.
 
Rethinking reward strategies
“South African organisations must evolve their reward strategies to cater to the shifting expectations of the modern workforce,” says Smit. Some innovative approaches that can help organisations attract, engage and retain Gen Z and Millennial employees:

1. Customisable benefits packages - A one-size-fits-all benefits model no longer appeals to today’s workforce. Employers should offer tailored benefits that allow employees to choose what suits them best, such as mental health support, wellness programmes, extended parental leave, or flexible work arrangements.
2. Frequent and real-time recognition - Unlike previous generations that were satisfied with annual performance reviews and bonuses, Gen Z and Millennials thrive on continuous feedback and recognition. Implementing peer-to-peer recognition programmes, instant reward systems and regular check-ins can boost morale and motivation.
3. Clear career development pathways - Organisations must offer structured career development plans that include mentorship, training and leadership programmes. Providing employees with a roadmap for growth will reduce turnover rates and increase loyalty.
4. Work-life integration and well-being initiatives - Young professionals place a high value on well-being. Organisations should invest in initiatives like mental health resources, employee assistance programmes and work-life balance opportunities to support their workforce’s overall health and happiness.
5. Diversity, equity and inclusion initiatives - Gen Z and Millennials expect workplaces to be diverse and inclusive. Organisations that actively promote gender equality, representation and inclusive policies will attract a more engaged and committed workforce.
6. Purpose-driven work and social impact - Employees are more engaged when they believe in their organisation’s mission. Providing opportunities for employees to contribute to meaningful causes, whether through volunteer days, sustainability initiatives or corporate giving programmes, enhances job satisfaction and loyalty.

 
The future of work in South Africa
As organisations navigate the future of work, they must acknowledge that career success is no longer defined by longevity or title alone. Instead, today’s workforce seeks meaningful engagement, rapid skills development and a balance between professional and personal aspirations.
 
Organisations that cling to outdated models of career progression and rewards risk alienating a generation that is more connected, informed and selective about where they work. By embracing flexible work arrangements, values-driven leadership and modern recognition strategies, businesses can build stronger, more committed teams and drive long-term success in the evolving job market.
 
Smit advises organisations to rethink their approach to career progression and reward structures. “Those that adapt will not only attract top talent but will also be able to foster increased innovation, productivity and sustainable growth,” he says.

ENDS
 
MEDIA CONTACT: Rosa-Mari Le Roux, [email protected], 060 995 6277, www.atthatpoint.co.za 
 
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The battle to attract, engage and retain talented employees continues, and many South African organisations are turning to flexible benefits to lure candidates away from their competitors.

“Skilled workers are realising how valuable they are and are demanding more than a generic remuneration package with set benefits,” says Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).

To make flexible benefits work for them, companies have to understand the diverse needs of their employee and develop the right offering of benefits to best meet those needs.

How do flexible benefits work?
A good flexible benefits scheme offers employees:

• A variety of possible financial and retirement, health and wellness as well as work-life benefits to choose from
• The ability to select a mix of benefits that best suits their personal needs
• The means to readily adapt the benefit mix to changes in their life circumstances, and
• The power to periodically adjust any contribution to each benefit

In an ideal case, staff could be so well informed and empowered that they could manage their benefits independently through their digital corporate employee portal, adapt their mix at will, or adjust benefit contributions in return for extra take-home pay.

However, employers may face practical constraints on the benefits offered, as well as the frequency and level of adaptability they are able to support. For example, benefits that are contractually agreed on or regulated such as retirement fund contributions and risk cover, may be legally restricted and/or have limited flexible options to ensure responsible outcomes for employees. There are also cost considerations, where a specific risk cover has been negotiated based on intended membership and a defined risk profile, thus negating the possibility of constant membership changes

The scope of flexible benefits
Flexible benefits may be financial, material, environmental or even emotional. So, employers should never limit themselves only to traditional cost-to-company elements when developing their programme.

A tiered health insurance plan is a common alternative to traditional medical aid, allowing employees to adjust the cost of medical cover to their specific needs and/or excluding services they don’t typically use, like a gym membership.
A range of leave types and flexible working arrangements might be more attractive to employees seeking work-life balance, protecting their mental health, or raising children.

In-house wellness programmes, such as mental health awareness and support, or a variety of physical therapies may also be welcome for those employees who prefer preventative approaches to managing their health.

However, it’s not practical to list every possible benefit and it is up to employers to use employee feedback to determine what's best for their situation and continually innovate to remain competitive.

“Whatever the benefits are, the objective should be to have a comprehensive benefits programme that caters to diverse needs and employee preferences in a manner that enhances their overall well-being and job satisfaction in a responsible manner.” says Sebesho. “This helps them feel empowered and valued, driving them to greater workplace engagement and productivity.”

Know your employee
A successful flexible benefits programme starts with knowing what existing and potential employees want. Jumping in feet first could result in a model that falls short of expectations. So, the vital first step is to engage with staff and subject matter experts and build the scheme around their feedback on what’s valued.
​
Research should consider factors like:

• Demographics: Understand the age, family structure, and life stages of your employees to tailor benefits accordingly.
• Gender - Women have different needs and concerns from men, like the pressure of raising children as a single mother.
• Stage of life - Older employees may be more concerned with retirement contributions whereas younger workers may need better medical aid and flexible work arrangements for their young families.
• Organisational level - Lower-level workers may want more take-home pay whereas affluent employees could care more about variable incentives and rewards.
• Financial implications: Determine the budget available for benefits and prioritise offerings that provide the most value to employees. Also evaluate the cost-effectiveness of different benefits to ensure they are sustainable.
• Benchmarking and compliance - consider what benefits are commonly offered in your industry to stay competitive and ensure compliance to laws regarding mandatory benefits.
• And any other parameters that help determine the best course of action.

“Again, it is possible and up to each employer to innovate and build a comprehensive, competitive flexible benefits offering that enables effective attraction, engagement and retention of diverse top talent,” says Sebesho.

ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
For more information on SARA please visit:
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You’ve decided it’s high time you got paid what you’re worth, and you’re about to knock on the boss’s door to ask for a raise. Before you do, take a moment to get your ducks in a row. 

“Convincing your employer to increase your salary can be challenging, and many employees make avoidable mistakes that weaken their case instead of strengthening it,” says Nicol Mullins, Master Reward Specialist and Past President of the South African Reward Association (SARA).

So, if you’re planning to negotiate your way to a bigger paycheck, make sure you steer clear of these five common pitfalls.

Getting the timing wrong
Asking for a raise just after joining the company or too soon after your last increase will probably be seen as premature or unprofessional. Salary reviews typically follow structured cycles, and approaching your manager at an inappropriate time reduces your chances of success.

“For example, if your company has not performed well or budget constraints have been imposed, your request will likely fall on deaf ears,” says Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at SARA.

Not demonstrating added value
Many employees ask for a raise without first establishing a strong case for why they deserve one at all. Simply fulfilling job responsibilities is not enough - you need to showcase consistent, measurable achievements, contributions and reliability.

“Demonstrating how your work has positively impacted the business strengthens your request, especially if your manager agrees with your evidence,” says Deon Smit, Master Reward Specialist and Executive Committee Member at SARA.

Using anecdotal evidence
Hinging your request on personal financial needs or comparisons with colleagues will prove fruitless. Most employers base remuneration on individual performance, trusted market benchmarks and business impact - not personal expenses, informal discussions about peer salaries, or arbitrary remuneration data gleaned from the Web.

“Instead, focus on your unique contributions to the company and the value you bring to your role and responsibilities,” says Mullins.

Using ineffective communication and approach
Approaching the conversation with threats, ultimatums, or vague references to news articles and generalised salary data weakens your credibility. Instead, rely on your company’s remuneration policy, verified industry benchmarks and a professional, well-prepared presentation of your case.

“A well-informed, positive and collaborative approach fosters a more constructive negotiation, and a greater probability of winning your raise,” says Sebesho.

Failing to take responsibility for your career
Employees often assume their employer is solely responsible for their career advancement, and consequently neglect their own professional development and growth. So, they miss out on opportunities for salary progression.

“Proactively engaging with your manager on your skill development, performance differentiation, and career planning ensures a stronger position when requesting an increase or even a promotion,” says Smit.

Revising your strategy
So, to recap - poor timing, not demonstrating value, using anecdotal evidence, ineffective communication, and no career initiative are all big mistakes. Individually or in any combination, they will likely see you leaving your boss’s office no better off than before.

“By avoiding these mistakes and approaching your salary negotiation strategically, you greatly enhance your chances of a successful outcome,” says Mullins.
ENDS

MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
For more information on SARA please visit:
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Artificial intelligence should not be used in employee remuneration just because it’s an exciting new technology.
“We need to identify real opportunities and problems first and then decide if and how we can apply AI to them,” says André Daniels, Chartered Reward Specialist and Exco member at the South African Reward Association (SARA).

Avoiding FOMO (fear of missing out)
Many South African reward professionals and employers might feel that they are being left behind, which could lead to panic-driven AI deployments. This mindset risks investing large amounts of time, money and resources into planning and implementing a solution that never yields a net positive result.

“The use of AI in remuneration should rather be purpose driven, focused on solving specific problems and creating tangible value, but not adopting it for its own sake,” says Daniels.  

Automation vs AI
Speaking at SARA’s 2024 Conference, Johan Steyn, founder of AI for Business, warned that AI should not be mistaken for automation. “There’s a very good chance that AI is not what you need to achieve efficiencies and effectiveness,” he said. After analysing a given problem, it may be found that simple automation is a more appropriate solution than AI.

AI can certainly contribute to efficiency, reward system transformation, bias and fairness measurement, annual salary reviews and streamlining other processes. Yet, it promises far greater utility than classic automation. 

Data utilisation
Daniels says he was inspired by Steyns’ presentation and assertion that AI is best utilised to discover meaningful patterns in corporate data.

Because of this, Daniels’ main focus currently is the value potential of AI in remuneration that lies in its ability to mine insights from remuneration and related data. In this way, it’s much like LiDAR, a laser mapping technology that can reveal archeological sites hidden deep underground.

“Similarly, AI can be used to reveal hidden patterns in remuneration data that inform powerful strategic decisions, reward policies, business processes and equity approaches,” says Daniels.

Building on flexibility
Even now, many organisations implement ERP solutions, usually at immense cost, only to see them fail to deliver the envisaged business-critical outcomes. Definitely, any AI-based implementation should be flexible enough to adapt to both current and future needs.

This will ensure that employers are investing in a bespoke solution that can evolve within its changing business environment, rather than something generic that doesn’t do everything it needs to.

Starting with the obvious
There is an opportunity to identify quick wins for some of the more obvious applications.

One is managing complexity. Do we really still need people to manually compile remuneration disclosures, or could an intelligent agent do this far more efficiently and accurately?

Another is managing bias. For example, can an AI model with access to an employee database carry out equal-pay-for-work-of-equal-value (EPWEV) analysis and judgements better than a human?

Or could AI help you refine your remuneration processes so that time-consuming admin and labour are eliminated?
Certainly, AI has been shown to quickly turn raw data into rich insights to inform and empower decision making at all levels of the organisation, including remuneration.

Beyond the obvious
After the quick wins, organisations can start looking at less obvious applications.

Could AI assist with the alignment of reward strategy to remuneration practices, ensuring cohesion between these concerns?

Might it also integrate remuneration with other HR practices, such as analysing the talent profiles of individual workers to help reward practitioners understand the reward preferences of a workforce? Or allowing them to understand how and when people prefer to be recognised?

Would employees, who sometimes feel embarrassed discussing their personal challenges with another human, find comfort in seeking guidance from an impartial AI agent? Not the limited chatbots with preprogrammed responses, but a language model that is trained to offer, say, realistic advice and assistance in a non-judgemental way. 

Starting off right
Before considering AI as a one-size-fits-all solution, organisations need to identify what they are doing that doesn’t add value or isn’t working, and opportunities to institute step change in their practices. What can they do that would take them to the next level?

This means identifying concrete business problems that must be solved or opportunities that may be exploited, rather than starting with an AI-first approach and expecting to retro-fit the model as and when required.

Only then should they consider which tools or solutions to employ - which may or may not include AI.

Involving reward professionals
For SARA, the burning question is: if AI is identified as a solution in remuneration, what is the role of the reward professional in the future?

This is critical because, if we cannot show them what their future looks like alongside AI, they see technology as an enemy that makes them redundant, and fear progress instead of embracing it. “However, if there is a shared vision of their role in the future, it becomes an exciting opportunity to work towards,” says Daniels.

With clarity on how the reward professional of the future adds value to the business, they can fully understand how to become better strategic enablers in organisations, and communicate their worth confidently.

ENDS
 
MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
For more information on SARA please visit:
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 The world of work is evolving rapidly and along with it, employee demands and remuneration practices.
“Companies who want to stay ahead of the talent race need to keep abreast of these changes and adapt accordingly,” says Dr Mark Bussin, Master Reward Specialist and President of the South African Reward Association (SARA).
​
Dr Bussin says these are the top 10 global trends impacting remuneration policies and practices:

1. Remote and hybrid work are becoming the norm rather than the exception. Companies need to develop flexible reward policies for this model to succeed, especially where employees in different regions face cost-of-living challenges. A set remuneration package that ignores location could drive critical talent away.
2. Pay transparency and equity are seeing greater demand from industry influencers and lawmakers. What companies pay and how they arrive at those figures will come under more intense scrutiny, and they’ll be expected to expose, explain and correct gender, race and other pay gaps.
3. Focus on holistic total rewards continues to grow, not just in terms of non-monetary benefits above base salary, like wellness programmes, flexible working hours or career opportunities. Younger workers also want to contribute to societal solutions through employers who are proactive about their concerns.
4. Skill-based pay and agile remuneration see companies focusing rewards on the skills employees bring to the business rather than their job title, and creating agile reward structures that meet the enterprise’s rapidly changing talent requirements. This motivates employees to develop in-demand skills that evolve with their employer’s needs.
5. Variable pay and performance based remuneration rewards employees for their performance in relation to their organisation’s success, not just their individual efforts. Bonuses, profit sharing, share options, incentive pay and other schemes can all motivate workers to focus on corporate outcomes.
6. AI and data analytics are already being used extensively to optimise rewards and will continue to shape the future of remuneration. They allow HR teams to develop data-driven remuneration packages that are fair, competitive and aligned to enterprise strategy. 
7. Flexible benefits and reward personalisation mean the days of fixed, one-size-fits-all benefits are numbered. Increasingly, benefits are tailored to each employee’s particular needs and adjusted as their life circumstances change, such as swapping unnecessary medical benefits for more take-home pay or vice versa.
8. Global mobility and expatriate remuneration have changed significantly over the past few years. Remote working, digital transformation and other global developments have unearthed new opportunities and challenges for employers, creating the need for refined remote worker and expatriate remuneration models.
9. A growing focus on wellbeing and mental health benefits comes from the realisation that, in today’s fast-paced, always-connected digital world, employees are under greater stress than ever. Mental health interventions, support programmes and compassionate allowances are essential to maintaining productivity in the workplace.
10. Sustainability and ethical remuneration are becoming increasingly more important to employees, concern groups and lawmakers alike. To attract and retain talent, enterprises have to offer fair and equitable remuneration while aligning their business strategy and practices with meaningful corporate social responsibility goals.

“These concepts will become more business-critical in the coming years and organisations who depend on skills excellence must embed them deeply in their reward strategy,” says Dr Bussin.
 
ENDS

MEDIA CONTACT: Idele Prinsloo, idele@atthatpoint.co.za, 082 573 9219, www.atthatpoint.co.za 
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South Africans can look forward to an average salary increase of 6% in 2024/2025 says Dr Mark Bussin, Master Reward Specialist and Executive Committee Member of the South African Reward Association (SARA).

“There is a glimmer of hope regarding GDP growth and, if we continue on this trajectory, it could mean the brighter future we’ve all been praying for,” he says.

Salary increases may not be the only consideration in a robust total rewards programme, but they are definitely a cornerstone. For organisations, they’re also a key factor in business sustainability.

Likewise, they are essential to employees who, due to inflation, become relatively poorer over the course of any given year. A timely salary increase helps them stay ahead of the cost of living and pursue a lifestyle they’re content with.

Influences
Typically, the start point for setting salary increases is the consumer price index (CPI). However, employers need to consider additional factors, such as:

• The projected financial performance of the organisation
• The affordability of the increases
• The sustainability of the business
• The extent of salary increases in the previous year
• The performance of individual employees
• Union expectations and demands
• Current employee remuneration compared to market benchmarks
• How important the attraction and retention of key roles and critical skills are to the organisation

Understanding these and other factors unique to their business helps employers take the guesswork out of salary increases.

What to expect
SARA’s data indicates that increases for 2024, by staff category, will look as follows:

• Unionised Staff - median of 6.25%
• General Staff - median of 6.01%
• Specialists - median of 6.00%
• Management - median of 5.97%
• Executives - median of 5.79%
• CEO - median of 5.70%

The increase percentage above inflation is the employee’s real salary increase. According to Stats SA, inflation is currently 4.4%, so an increase of, say, 6% results in a real salary increase of 1.6%.

SARB’s recent reduction in interest rates from 8.25% to 8% also improves the cost-of-living gap somewhat as workers will pay less to service their debt.

However, according to Dr Bussin, it’s a thin silver lining as many employees remain over indebted while others continue to live in what he calls “in-work poverty”.

“We need to aim for a living wage that allows workers to live with dignity,” he says.

Rewards and growth
While salary increases are a hot topic right now, Dr Bussin warns that remuneration and increases do not live in a silo.
“The country needs growth, and growth needs skills and talent,” he says. “We have both, but we must unleash them by creating the correct government policy framework and certainty to support it.”
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Therefore, lawmakers need to urgently implement much needed policy reforms that will boost organisations’ ability to grow and hire unemployed people.
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ENDS

MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
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