The top two criteria used to differentiate annual salary increases are individual performance and company performance, a Kenyan survey reveals.

According to a survey carried out in Kenya by Virtual HR services in partnership with South Africa’s 21st Century Group, the top two criteria used to differentiate annual increases in most organizations are individual and company performance. The other consideration for awarding salary increase is affordability.

The survey was carried out to determine the nature and extent of salary movements in Kenya for last year and the first quarter of 2015. The data which was collected from some of the leading Kenyan brands including Safaricom Limited, Strathmore University and Libya Oil Kenya Limited among other organizations sampled 13 CEOs, 57 Executives, 872 Managers and 5 247 General Staff.

The survey revealed valuable insights which can be useful for senior management and HR executives in Kenya’s corporate world. From the research, we found that, in most organizations, the executive management have the highest prevalence of the total consolidated package at 38.5%.  The executives are also more likely to enjoy flexibility in their package compared to the general staff.

The crust of the report in the survey revealed that the top two reasons why employees leave organisations are either being forced out as a result of non-performance or downsizing or because they choose to leave for personal or career growth.

Despite differences in industry and organisational culture, most employees are motivated in their job because of one or many of the following factors:

  • The organisation for which they work

  • Remuneration offering, including incentives

  • Their boss

  • The work environment such as culture, personality fit and flexibility

  • Recognition

  • The achievements they can produce when they play a specific role

  • The status that a position gives them

  • Their peers, team and co-workers

  • The work schedule

To keep every employee satisfied and motivated, managers should understand what motivates each employee individually and design their work environment accordingly.

The detailed report which is available for free on request concludes that, salary increase determination is not an isolated decision and is made with consideration of your organization’s affordability as well as your company’s history of salary increases.

To get this report for FREE, Call us +254(020) 233 7980 or Email: info@virtualhr.co.ke