{"id":31263,"date":"2022-10-12T13:30:24","date_gmt":"2022-10-12T13:30:24","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill"},"modified":"2022-10-12T13:42:48","modified_gmt":"2022-10-12T13:42:48","slug":"expanding-the-remuneration-pie-without-increasing-the-wage-bill","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill","title":{"rendered":"Expanding the Remuneration Pie Without Increasing the Wage Bill"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Namibia. <\/strong><\/span>Doreen Zamuee<\/p>\n<p>TODAY&#8217;S FIRMS MUST balance the impact that rising inflation rates have had on their profit margins while also considering the basic necessities of their workforce.<\/p>\n<p>Doreen Zamuee<\/p>\n<p>TODAY&#8217;S FIRMS MUST balance the impact that rising inflation rates have had on their profit margins while also considering the basic necessities of their workforce.<\/p>\n<p>It is no secret that the Namibian economy is experiencing and will continue to experience increased inflationary pressures.<\/p>\n<p>This is accompanied by anticipated price hikes for housing, utilities, food, and non-alcoholic beverages, as well as a consistent decline in the value of the Namibia dollar.<\/p>\n<p>A direct cash infusion into the already high salary bill \u2013 on which most businesses spend more than 50% of their revenue \u2013 used to be the traditional solution to employees&#8217; financial woes.<\/p>\n<p>This article&#8217;s goal is to persuade businesses to think about other options for raising employee net income (cash in the bank) without having to increase the already substantial salary budget.<\/p>\n<p>EQUITY SHARING<\/p>\n<p>The provision of equity shares, as some private corporations have started doing, is a known method of raising employees&#8217; net income, which, for the purposes of this article, means expanding the pie.<\/p>\n<p>When a corporation offers its employees equity shares, it&#8217;s either as a reward for good work or sold at a set, or discounted price.<\/p>\n<p>Research shows that companies which offer employees shares have lower staff turnover rates, and greater retention and overall performance.<\/p>\n<p>This is, however, a longer-term investment for the employee who is able to invest for the future.<\/p>\n<p>The advantage of this option is that of tax exemptions offered on the payment of dividends at the end of each financial period.<\/p>\n<p>This is unfortunately not a tangible option for non-privately owned entities.<\/p>\n<p>BALANCING THE COST OF LIVING: ACCOMMODATION<\/p>\n<p>Namibian human capital initiatives need to include the urgent finding of ways to offset inflation by increasing the net income employees could remain with, without increasing the wage bill.<\/p>\n<p>A proposal would be to take a look at employees&#8217; immediate needs and finding ways to assist them in these areas.<\/p>\n<p>Currently accommodation is the biggest expense for the majority of employees.<\/p>\n<p>With such vast space and a population of just over two million people, Namibia has one of the most overvalued real estate markets in the world.<\/p>\n<p>Companies could help by entering into an agreement with financial institutions to provide loans for real estate at lower interest rates.<\/p>\n<p>The rates may be advantageous for both the firm and the respective bank. The company would gain because more money would wind up in employees&#8217; pockets without having any impact on the wage bill.<\/p>\n<p>Prime-1 interest rate reduction may put at least N$500 in the employee&#8217;s pocket.<\/p>\n<p>The benefit for the external stakeholder could be increased in clients with millions gained through compounded interest.<\/p>\n<p>Free advertising on the company platforms may even be considered if the interest rate is low enough.<\/p>\n<p>Also consider an agreement with a developing firm where those who cannot afford to purchase houses through the bank could enter into an agreement that allows them to rent to own.<\/p>\n<p>The basic model allows a tenant to enter into an agreement for rental property directly from the developer, and cut out the interest enforced on lower-earning income clients by banks.<\/p>\n<p>This, if properly facilitated, could offer security and long-term employment (retention) with the institution and allow for the ultimate ownership of property. Liability can be clearly communicated in the documents.<\/p>\n<p>AGREEMENTS WITH PHARMACIES<\/p>\n<p>Pharmacies&#8217; flexibility with setting up profit margins allows for negotiations with institutions on the price for medicine.<\/p>\n<p>Companies with a great staff complement can use these numbers to their advantage, where employees can benefit from purchasing medicine at a reduced rate simply by presenting their medical aid and staff card.<\/p>\n<p>These agreements could be highly beneficial, particularly for those employees who suffer from chronic ailments.<\/p>\n<p>The pharmacy as a business will benefit from the numbers that enter their doors.<\/p>\n<p>The overall result would be money remaining in an employee&#8217;s pocket.<\/p>\n<p>The same could be applied to other healthcare service providers.<\/p>\n<p>AGREEMENTS WITH INSURANCE PROVIDERS<\/p>\n<p>At present, many Namibians are paying high amounts of money for insurance they do not use.<\/p>\n<p>The proposal is that companies could approach insurance service providers to offer employees reduced rates and barter for advertising space on employer platforms when the insurance companies have new products.<\/p>\n<p>One such benefit, which would be a huge incentive, was an OUTBonus model.<\/p>\n<p>The ultimate result: Money in the employee&#8217;s pocket.<\/p>\n<p>DAY- AND AFTERCARE FACILITIES<\/p>\n<p>Child-rearing is another aspect that cuts deep into the net income of young parents. Company time is often spent fetching children from school and taking them to aftercare facilities.<\/p>\n<p>Further, parents spend large amounts of money paying for these facilities on a monthly basis.<\/p>\n<p>Providing a daycare facility provides savings in two areas: fuel spent on transporting young ones from one place to another, and ensuring that employees are back at work on time.<\/p>\n<p>Employees are actually supposed to rest during the lunch hour, which does not happen as they are too busy fending off traffic and figuring out the shortest routes to ensure their destination is reached.<\/p>\n<p>There is research that argues both for and against this idea.<\/p>\n<p>The latter being that parents, particularly nursing mothers, end up spending the bulk of their time at the daycare, which reduces their productivity.<\/p>\n<p>Compare that with an employee who has to drive 20km to nurse and rush back to work. That is time lost as well. One could at least manage such a mother or father better if they are at the facility.<\/p>\n<p>Further, this benefit could also serve as a resource-mobilising initiative. Parents are already paying large sums of money to have their children in daycare, why not redirect those funds from their salaries?<\/p>\n<p>The payment is guaranteed before the salary is released to the bank. Secondly, academic institutions, such as the International University of Management, could allow its final-year students to offer tutorship as part of the experience required.<\/p>\n<p>From the above, it is clear that it is indeed possible to &#8216;pay&#8217; an employee without raising the business&#8217; wage costs.<\/p>\n<p>If properly carried out, the methods presented above have the potential to raise the amount of money the employee will have to work with.<\/p>\n<p>* Doreen Zamuee is a human resources professional and holds a master&#8217;s degree in human resource management from Sussex University.<\/p>\n<p>It is no secret that the Namibian economy is experiencing and will continue to experience increased inflationary pressures.<\/p>\n<p>This is accompanied by anticipated price hikes for housing, utilities, food, and non-alcoholic beverages, as well as a consistent decline in the value of the Namibia dollar.<\/p>\n<p>A direct cash infusion into the already high salary bill \u2013 on which most businesses spend more than 50% of their revenue \u2013 used to be the traditional solution to employees&#8217; financial woes.<\/p>\n<p>This article&#8217;s goal is to persuade businesses to think about other options for raising employee net income (cash in the bank) without having to increase the already substantial salary budget.<\/p>\n<p>EQUITY SHARING<\/p>\n<p>The provision of equity shares, as some private corporations have started doing, is a known method of raising employees&#8217; net income, which, for the purposes of this article, means expanding the pie.<\/p>\n<p>When a corporation offers its employees equity shares, it&#8217;s either as a reward for good work or sold at a set, or discounted price.<\/p>\n<p>Research shows that companies which offer employees shares have lower staff turnover rates, and greater retention and overall performance.<\/p>\n<p>This is, however, a longer-term investment for the employee who is able to invest for the future.<\/p>\n<p>The advantage of this option is that of tax exemptions offered on the payment of dividends at the end of each financial period.<\/p>\n<p>This is unfortunately not a tangible option for non-privately owned entities.<\/p>\n<p>BALANCING THE COST OF LIVING: ACCOMMODATION<\/p>\n<p>Namibian human capital initiatives need to include the urgent finding of ways to offset inflation by increasing the net income employees could remain with, without increasing the wage bill.<\/p>\n<p>A proposal would be to take a look at employees&#8217; immediate needs and finding ways to assist them in these areas.<\/p>\n<p>Currently accommodation is the biggest expense for the majority of employees.<\/p>\n<p>With such vast space and a population of just over two million people, Namibia has one of the most overvalued real estate markets in the world.<\/p>\n<p>Companies could help by entering into an agreement with financial institutions to provide loans for real estate at lower interest rates.<\/p>\n<p>The rates may be advantageous for both the firm and the respective bank. The company would gain because more money would wind up in employees&#8217; pockets without having any impact on the wage bill.<\/p>\n<p>Prime-1 interest rate reduction may put at least N$500 in the employee&#8217;s pocket.<\/p>\n<p>The benefit for the external stakeholder could be increased in clients with millions gained through compounded interest.<\/p>\n<p>Free advertising on the company platforms may even be considered if the interest rate is low enough.<\/p>\n<p>Also consider an agreement with a developing firm where those who cannot afford to purchase houses through the bank could enter into an agreement that allows them to rent to own.<\/p>\n<p>The basic model allows a tenant to enter into an agreement for rental property directly from the developer, and cut out the interest enforced on lower-earning income clients by banks.<\/p>\n<p>This, if properly facilitated, could offer security and long-term employment (retention) with the institution and allow for the ultimate ownership of property. Liability can be clearly communicated in the documents.<\/p>\n<p>AGREEMENTS WITH PHARMACIES<\/p>\n<p>Pharmacies&#8217; flexibility with setting up profit margins allows for negotiations with institutions on the price for medicine.<\/p>\n<p>Companies with a great staff complement can use these numbers to their advantage, where employees can benefit from purchasing medicine at a reduced rate simply by presenting their medical aid and staff card.<\/p>\n<p>These agreements could be highly beneficial, particularly for those employees who suffer from chronic ailments.<\/p>\n<p>The pharmacy as a business will benefit from the numbers that enter their doors.<\/p>\n<p>The overall result would be money remaining in an employee&#8217;s pocket.<\/p>\n<p>The same could be applied to other healthcare service providers.<\/p>\n<p>AGREEMENTS WITH INSURANCE PROVIDERS<\/p>\n<p>At present, many Namibians are paying high amounts of money for insurance they do not use.<\/p>\n<p>The proposal is that companies could approach insurance service providers to offer employees reduced rates and barter for advertising space on employer platforms when the insurance companies have new products.<\/p>\n<p>One such benefit, which would be a huge incentive, was an OUTBonus model.<\/p>\n<p>The ultimate result: Money in the employee&#8217;s pocket.<\/p>\n<p>DAY- AND AFTERCARE FACILITIES<\/p>\n<p>Child-rearing is another aspect that cuts deep into the net income of young parents. Company time is often spent fetching children from school and taking them to aftercare facilities.<\/p>\n<p>Further, parents spend large amounts of money paying for these facilities on a monthly basis.<\/p>\n<p>Providing a daycare facility provides savings in two areas: fuel spent on transporting young ones from one place to another, and ensuring that employees are back at work on time.<\/p>\n<p>Employees are actually supposed to rest during the lunch hour, which does not happen as they are too busy fending off traffic and figuring out the shortest routes to ensure their destination is reached.<\/p>\n<p>There is research that argues both for and against this idea.<\/p>\n<p>The latter being that parents, particularly nursing mothers, end up spending the bulk of their time at the daycare, which reduces their productivity.<\/p>\n<p>Compare that with an employee who has to drive 20km to nurse and rush back to work. That is time lost as well. One could at least manage such a mother or father better if they are at the facility.<\/p>\n<p>Further, this benefit could also serve as a resource-mobilising initiative. Parents are already paying large sums of money to have their children in daycare, why not redirect those funds from their salaries?<\/p>\n<p>The payment is guaranteed before the salary is released to the bank. Secondly, academic institutions, such as the International University of Management, could allow its final-year students to offer tutorship as part of the experience required.<\/p>\n<p>From the above, it is clear that it is indeed possible to &#8216;pay&#8217; an employee without raising the business&#8217; wage costs.<\/p>\n<p>If properly carried out, the methods presented above have the potential to raise the amount of money the employee will have to work with.<\/p>\n<p>* Doreen Zamuee is a human resources professional and holds a master&#8217;s degree in human resource management from Sussex University.<\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/namibia\">Namibia<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Namibia. Doreen Zamuee TODAY&#8217;S FIRMS MUST balance the impact that rising inflation rates have had on their profit margins while also considering the basic necessities of their workforce. Doreen Zamuee TODAY&#8217;S FIRMS MUST balance the impact that rising inflation rates have had on their profit margins while also considering the basic necessities of [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":31262,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[234,236,233],"class_list":["post-31263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Expanding the Remuneration Pie Without Increasing the Wage Bill - Namibia<\/title>\n<meta name=\"description\" content=\"Doreen Zamuee TODAY&#039;S FIRMS MUST balance the impact that rising inflation rates have had on their profit margins while ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Expanding the Remuneration Pie Without Increasing the Wage Bill\" \/>\n<meta property=\"og:description\" content=\"Doreen Zamuee TODAY&#039;S FIRMS MUST balance the impact that rising inflation rates have had on their profit margins while ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-12T13:30:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-12T13:42:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/10\/postQueueImg_15-6346c4458d379.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Expanding the Remuneration Pie Without Increasing the Wage Bill\",\"datePublished\":\"2022-10-12T13:30:24+00:00\",\"dateModified\":\"2022-10-12T13:42:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill\"},\"wordCount\":2111,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/10\/postQueueImg_15-6346c4458d379.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/expanding-the-remuneration-pie-without-increasing-the-wage-bill\",\"name\":\"Expanding the Remuneration Pie Without Increasing the Wage Bill - 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