Warren Heaps – Birches Group LLC
Africa is a Diverse Continent
Africa is a vast continent with over 50 countries. There is much diversity, too, amongst the people, cultures, climate, economies and businesses across the region. Not surprisingly, there is also tremendous diversity in compensation in Africa — not only the obvious differences in actual amounts of pay, but importantly, a wide range of practices in addition to base salary.
Pay and Benefits in Africa
Birches Group recently examined the total compensation for Working Level Professionals – college graduates with five to eight years of experience and a level of technical expertise in their respective profession. Typical positions included Accountants, Brand Managers, Bankers, Engineers, Human Resources and other occupations across ten markets in Africa.
The results confirmed the wide range of absolute pay levels – from around $40,000 to over $110,000 per year.
Allowances and In-Kind Benefits Are Important
The salary numbers only tell half the story. In many developing countries, employers provide allowances and in-kind benefits to local staff. These benefits include cash allowances such as 13th month and vacation bonus, as well as cash or in-kind payments for transportation, food, housing, recreational activities, and more.
Allowances and in-kind benefits provide from 8% to over 30% of the total package, depending on the country. Therefore, it’s critical to consider these elements in designing pay packages. To overlook these “extras” and focus just on base salary would result in a potential gap against the market.
Global Approaches Need Local Tailoring
Global employers take pride in having consistent approaches to compensation around the world. But in developing countries, local practices and insights need to be fully considered in the broader context of the employer’s compensation strategy. The best way to ensure your pay package is competitive is to reference a good market survey, that captures all of the elements of compensation in the market, from the leading employers present in the market.
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