As the end of the 2023 Financial Year grows near, it is a great time to reflect on the last 12 or so months on how things have gone for your company. Economic uncertainty has increased alongside inflation and the world has ended up in a position that few, if any, accurately predicted.
The most important consideration right now is inflation. This is a cost that affects everyone at every level, and will affect your suppliers, customers and naturally your employee too.
Your budget for FY2024 will need to account for staff salary increases as an absolute certainty and you will need to be aware of your own budgetary constraints before you accommodate any salary changes.
You will also need to consider current market conditions as even your most engaged and motivated staff will have one foot out the door if they believe they are not getting the best deal available given their financial pressures, and the talent wars that is still providing lots of choices for job changes.
If your business wants to be an Employer of Choice and attract good staff, then you need to budget and account for realistic and competitive workforce costs for the next financial year – or face a staff exodus which give you even more challenges!
There is significant potential for staff to become disgruntled and turn that frustration at their employer if they believe they are not being rewarded sufficiently for their work. If there is consistent and comprehensive plan for reviewing staff remuneration, the trust from staff increases, retention increases, and threats of wage theft diminishes.
How do you ensure you get a return on investment for any wages you pay? This is where performance monitoring comes into play and can give you a sound and logical basis for what wages your staff should receive. You should know what a good performance looks like – with clear measures for both your assessment and the focus of the employee.
We help many businesses with wage and salary reviews every year and we can help yours too. Planning ahead does not have to be overwhelming and it can be what saves you from suffering the same headaches as businesses. There is some underpinning work – that will pay back dividends for years to come. It can also be what saves your business potentially costly mistakes. We provide consultation services, as well as full audits of staff KPIs, remuneration levels and more. If you would like to know more or if you need our help with something urgent, please feel free to contact us on 0408 897 079 or at suzanne@performanceadvantage.com.au
Suzanne Diprose, Director
Suzanne@performanceadvantage.com.au
0408 897 079
