My takeaway from the sharing session:
Competitive wages is important to attract and retain talent. However with higher wages, the propensity to maintain wage cost competitiveness has become increasingly important for sustainability. Therefore, we need to increase productivity to combat the rise in higher wages.
Especially in our economy like Singapore that is often influence by external factors, our wage system needs to be very flexible and responsive to remain competitive.
For a competitive wage system, you may wish to consider the following;
- If you do not have any job grades in place in the Company, start with job levelling with career progression in mind.
- If you wish to develop salary ranges, the min. max should be 1.5 ratio.
- Consider introduction of Monthly Variable Component (MVC).
Apart from sustainability, it is important to stress on work performance. This involves having a good performance management system and establish Key Performance Indicators (KPI). The general guidelines to KPIs should include (but not limited to);
- Consider the relevance to company's business
- Ensure the goals are quantifiable & transparent
- The goals / targets must be responsive & timely
- Employees' are able to influence the outcomes
I thought you might also be interested to read this article from Adobe and how they keep key employees from quitting, cheers!
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