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      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      The 7 Strategies of SA’s Strongest B2B Sales Performers for 2021

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      3 Sales Strategies SMEs Can Borrow from SA’s Strongest Performers

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      SA’s Strongest Salesforces Focus on Value, Not Discounting

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      Devastating Financial Gender Gap Has Grown: Women Are Better Investors, But Retire With 30-40% Less Than Men

      Why SMME’s Need To Think Small

      Devastating Financial Gender Gap Has Grown: Women Are Better Investors, But Retire With 30-40% Less Than Men

      Five Money Management Principles To Start 2021 On The Right Financial Footing

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      Home BUSINESS Staff Managing Staff

      About That Increase …

      ExpertHub Staff by ExpertHub Staff
      Oct 25, 2009
      in Managing Staff
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      About That Increase …
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      RelatedTopics

      7 Steps To Building The Perfect Team In Your Business

      How Outsourcing HR Can Optimise Your Human Capital

      How You Can Give Back To Your Employees


      Question:

      Are you paying your employees what they are worth? Do they have a right to a salary increase? Sean Snyman, a founder member of LabourNet Holdings, says it’s important for employers and employees to be realistic and objective.

      Answer:

      In South Africa there is no legal right to an annual salary increase. We have a free market economy, so salaries are determined by negotiation, not legislation. In a small-to-medium business, however, salary increases are usually entirely at the discretion of the owners.

      There are two exceptions to this:

      • A statutory minimum wage may be declared by the Minister of Labour. This is known as a sectoral determination in terms of the Labour Relations Act. One example is the Labour Ministry’s announcement of wage increases for farm workers in January 2006, which also regulated future annual wage increases until 31 January 2010.
      • Bargaining councils, formed by trade union members and employers’ organisations, deal with collective agreements, labour disputes, and schemes and proposals – they may collectively agree on an industry sector percentage increase, which has to be adhered to by all members.

      Employees who believe they are due a salary increase and that they are being treated unfairly have little recourse in terms of the law, although they are entitled to strike. A more positive option would be for the employee to motivate for an increase in a mature fashion, taking into account their performance, ways of addressing objections, industry norms and their own market value. Both sides need to remember that salary levels are largely dictated by market forces, including the cost of replacing the employee and the contribution that the employee makes to organisational performance.

      Sean Snyman, director, LabourNet Tel: +27 11 532 8801, www.labournet.co.za

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