Potential impact on employee rewards outlook for 2020

It is that time of the year when many organisations plan and budget for the coming year. Indeed, these plans reflect their perspective on the internal and external environment, the impact on their businesses and people, and how they plan to respond. Specifically, rewards or remuneration decisions are often made within a strong context of internal and external factors that impact business. Putting such a plan in place provides a sense of direction and a basis of measuring progress.
  
A report by KPMG, an audit, tax and advisory services firm, from an employee rewards perspective, distilled the outlook for Year 2020, with a view to empowering employers to take informed decisions that will support attainment of corporate objectives. The report underscores the need for Human Resource (HR)/ Rewards practitioners to stay abreast of local and global developments, to ensure they are providing holistic guidance to the business, while ensuring alignment with business imperatives.
 
The report focuses on economic, regulatory, global developments, market psyche and developments, and their potential impact on employee remuneration in 2020 and beyond. Based on the firm’s industry remuneration surveys, the 2020 Pay projections, which covered sectors, like Consumer Markets, projected 11% average pay increase in 2020; Telecomms, 11%; FCMG, 10%; Banking Industry, 7%; Oil and Gas (E&P), 10%; and Legal Services 11% .

Furthermore, on emigration of talent, with Nigeria experiencing a high rate of talent emigration to Canada, the UK and other Western countries, in search of a better life, the KPMG report argued that the heightened war for talent that the emigration has created can potentially drive up wages. Although, it said issues driving up this trend transcend the workplace, as employers would have to focus on what they have control over in fostering a workforce that is physically, emotionally, and mentally healthy balanced. This includes a conducive work environment, equitable and competitive rewards, better medical cover, learning and career growth opportunities, and other relevant support systems.