In a bid to ensure sustainability, companies are taking a critical look at their employee benefits structure to identify areas that unduly expose them to escalating costs.
Remuneration is one of the areas businesses are exploring to contain cost. Developing a better understanding of cost optimization, while repositioning for future opportunities, has become a strategic imperative for HR/Reward practitioners.
There is a renewed trend towards revising HR/Reward policies and practices, which unduly expose companies to escalating costs, in a bid to ensure sustainability. Overall, companies are taking a critical look at their employee benefits programme to identify areas to cut, while retaining only critical, compelling items that have real impact on employees’ welfare.
Monetising benefits-in-kind items, reviewing foreign denominated pay, restructuring gratuity schemes and reviewing incentive plans are some of the areas companies are exploring to manage costs. With the increasing pace of developments, HR/Reward practitioners need to closely monitor the rewards landscape, as companies relentlessly pursue changes aimed at reining in cost and keeping operations as nimble as possible.
To read our 2016 publication on Emerging Trends in Remuneration Practices in Nigeria, click "Download PDF" below.
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