Pay To Keep The Best!

A hot topic currently in the news is the public sector pay schemes.

In the public sector pay increases are around 3-4 % on average across the sector, which is above the rate of inflation 2.1% and inline with the “experts, true” rate of inflation, 3.9% but is it enough?

Private sector businesses seem to recognise that retention amongst their best employees and pay increases occur and reflect the efforts. You make the company money and they will pay you accordingly! The average pay increase in this sector is around 5-10%.

Public sector businesses have seen pay increases of around 2.9%, however some believe the true value to be lower. Public sector businesses have more restrictions and don’t have the advantages of operating to make a profit. I believe this to be the main reason why pay increases are limited. It is difficult to obtain authorisation for pay increases in private companies, never mind a new pay scheme that has to be passed by government.

In my opinion private sector businesses run to make profit, thus it is sensible to invest in the assets that make you your profits. The main and most common retention technique involves pay increases, but where private sector businesses excel the most is with putting together a bigger overall salary package through extra benefits, bonuses and training and development to increase retention.

Private sector businesses tend to have higher and bigger pay bands, yet the Public sector businesses are the soul of the nation, teachers, nurses and police, shouldn’t steps be taken to increase their pay? They might not make some shareholders money, but support the infrastructure and economy private sector workers can be productive at work.

Due to the skills and necessary drive to increase the retention within the Public sector, the basics of a good salary structure that reflects the true benefits and demands of the employee in that job should be in place. Businesses should implement retention techniques to keep the skills, knowledge and best practices within the organisation. If pay is an issue why can’t experienced experts within the field be offered “ Advisor/Consultancy/Coaches/Mentors” roles to train and pass on knowledge before you cannot retain them any longer?

One thought on “Pay To Keep The Best!

  1. Matt

    Whilst I agree that money always talks… and the peanuts and monkey cliche… there is another way. By using value based recognition and reward programs that give more than just cash – you can fin, keep and improve employees…and not just in the private sector. The best comapny I’ve seen doing this in Australia is RedBalloon – their package is based on amazing experiences only. What would you rather do (and tell people about!) – get some money you spend on groceries or do that sydive you always wanted to do or have a massage at home. Take a look at http://corporate.redballoondays.com.au/

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