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Fair and transparent remuneration is the best way to go

28 April 2022 Ellen Roelants Employers

Acerta's two-yearly survey of more than 2,000 employees shows that 45% of Belgians do not know how their salary is determined. The other half identified seniority and experience as the most important pillar. A fair wage, a clear growth path and transparent communication work best. But how exactly do you do that?

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Take the ABC (Autonomy, Bonding and Competence) into account in your remuneration policy

There are two important conditions for a strong and sustainable remuneration policy: transparency and fairness. For example, employees will more readily accept differences in pay between colleagues if it is clear why those differences exist. For example, responsibilities, seniority and experience are measurable, and thus form a clear criterion. However, one should not pay purely on the basis of years of work, because that does not motivate. So how do you motivate your employees?

Healthy motivation is the best fuel for high-performing employees. Motivated employees are those who see their basic needs of Autonomy, Bonding and Competence fulfilled, according to the theory of self-determination (Deci & Ryan):

  • Autonomy: being able to make your own choices and decisions
  • Bonding: feeling a bond with colleagues, working relationships and the organisation
  • Competence: being able to perform one's tasks.

Of course, pay remains an important pillar for motivating people and keeping them motivated. Did you know that the ABC model can also be integrated into your wage policy? Only when remuneration meets personal needs, is perceived to be fair and is transparent, does it have a motivating effect.

Important asset in a difficult labour market

Research continues to show that more than 70% of Belgian workers want more say in the composition of their pay package. It is therefore striking that more than 8 out of 10 Belgians indicate that they have no choices in their current salary package. If, as an employer, you do give your employees choices, you will gain a major competitive advantage in the current situation of labour shortages and the war for talent. In addition, a green cafeteria plan can also be used to make a commitment to the climate. You can offer bike leasing, electric company cars, etc. Win-win-win for your organisation, your employees and the climate!

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Written by Ellen Roelants

Senior Consultant

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