Economic troubles might impact on employees' bonuses

In South Africa, the rising costs of living brought on by the weakening rand, rising oil price and surging energy costs have many consumers feeling the pinch without any relief.

"It's caused added tension and dissent in the workplace, however employers have some tough decisions to make in the current economy. For many employees this has been the second or third year without a bonus or significant increase, which is effectively meaning they are earning less in real terms not to mention in relation to the escalating costs of living brought on by the electricity and fuel prices," says Lyndy Boland, acting managing director of Manpower Group South Africa.

Environment has changed permanently

"This year, employers will again be considering whether to implement bonuses and raises. The South African Chamber of Commerce and Industry's Business Confidence Index in April dropped to 94.3 points, the lowest in three years. This April's figure was 8.2 points below the April 2011 level. However, it is not simply a case of waiting for things to get back to normal; in fact, it seems things have changed permanently with regards to the working environment. The economic troubles have changed the way employers and employees operate as we move into a 'human age' of business. Many employees and business are sitting, expecting things to stay the same as they always were without realising that things have changed and they need to change with them in order to move forward," Boland continues.

It will start meaning more power in the hands of those willing to learn and adopt and less in those who are not. Increased income will be in the hands of individuals through the way they work and learn, using their skills to add value to their services and their remuneration. Bonuses and increases are no longer the given they once were, they are now becoming the payment for value received.

Right talent instead of any talent

"While many employees wait to start receiving their annual perks again when the economy picks up, many employers have questioned the need to continue with the way things used to be. Changes in the economy have thought them to maximise staff skills and redistribute jobs. These perks are increasingly becoming the means to keep and attract the 'right talent' instead of 'any talent' as the world becomes increasingly competitive and desires ever-increasing standards of output. For many employees this has left them feeling left out in the cold, but new thinking proposes a harsh reality - learn multiple skills and keep on learning as distinct and static positions are a thing of the past.

"Though some may view this as a negative, the power is shifting toward the individual as the decision maker in their careers and how they are remunerated for it. The shift is a move in a positive direction and is almost a revolution in terms of how businesses and people, work and live. Living in a new normal that is anything but normal, epic shifts are converging and moving the world into the human age. Identified by Manpower as a new world era, the human age will be an era of great transformation, radical changes and new developments, where business models will have to be redesigned, value propositions redefined and social systems reinvented," explains Boland.

"As attitudes change, time too is become much more of a commodity than ever before, employees are appreciating more of it and employers are seeing the benefits of it and it being increasingly used as a means of reward or negotiation as people either seek to utilise more time for themselves or more time working. This too may prove to offer some alternative to the old practice of raises and bonuses across the board based on performance appraisals and reviews," Boland concludes.