Human Resources / Reward Practices Survey 2015/2016
The prevailing economic headwinds present Human Resources (HR) professionals with an enormous challenge of helping businesses survive the downturn, while also repositioning to optimise future opportunities. HR realises that a strategic approach, beyond cutting costs and heads, is required to ensure sustainability. To discharge this strategic role, HR requires the right and complete information to demonstrate that proposed reforms are appropriate for steering the business in a positive direction. Internal and external data are required to form a holistic view of issues and determine how best to respond.
In line with KPMG’s objective of inspiring confidence and empowering change for companies, we have designed the 2016 edition of the HR/Reward Practices Survey to focus on how companies are dealing with the prevailing economic slowdown. Armed with the right information, an organisation can better review existing programmes, policies and practices, with a view to cutting needless cost, while enhancing efficiency, effectiveness and better alignment with strategic objectives.
We are, therefore, pleased to present the findings from the 4th Edition of the KPMG Annual HR/Reward Practices Survey (“the Survey”). We have expanded the Survey to enhance its robustness and relevance to participants. Majority of companies have either Down/Right-Sized and / or placed a Freeze on Recruitment.
Salary Cuts, on the other hand, are not common. We also noted other measures such as Zero-Based Budgeting, Optimising Cost via Infrastructure Transformation and Reduction in Travel Cost as strategies for surviving the tough times.
Based on the survey results, 76% of the participants implemented salary increases of up to 10% in 2015. Based on our experience of the market, the two major drivers of the increase are inflation and collective bargaining agreements with employee unions. 33% of the respondents review their pay structure every year. It is however left to be seen what the actual pay movements for 2016 will be, in light of the economic uncertainties and widespread focus on cost containment.
In 2017, we expect to see strident agitation by unions for some palliative measures to cushion the effect of the recession on employees. This may, therefore, threaten the relatively-peaceful relationship between unions and management.
The survey showed that the culture of Workcation1 and Sale of Vacation, which are common in the global market, is still alien to the Nigerian market, as 82% and 100% of the respondents, respectively, do not currently adopt these practices.
The survey covers the following key areas:
Download the 2015-2016 HR Reward Practices Survey Report here
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