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* Once the salaries have been inserted, calculate an average across the organisations for the same job. It is suggested that the highest and lowest figures in each row are excluded from the calculation. To find the average, add up a II the remaining salaries for each job and divide the sum by the number of salaries included in the calculation.
* Use these calculated averages for each job as a starting point for setting the salary. Decide how the organisation wants to compare itself with these other organisations. It may want to pay salaries above or below the average.
* The salaries should follow the same pattern as the grades. In the example grading structure above, salaries should be higher in the A grades than the B grades.
* When a job cannot be compared with jobs in other organisations, the grades can act as a guide as the example on page 19 shows. Using this system means that salaries are calculated in a simple way and line managers are not paid huge salaries compared with those they line manage. However, it is possible that jobs on the same grade may not always be paid the same salary. For example, an officer working on a medical project may need medical qualifications and therefore be given a higher salary than an officer working on a community development project.
* Once a set of salary levels has been identified, consider the overall costs in relation to available funds. If necessary, repeat the process until an acceptable solution has been achieved.

QUESTIONS TO ASK YOURSELF WHEN RUNNING THE HUMAN RESURCE DEPARTMEN OF AN ORGANAIZATION:

* How do we set salaries in our organaisation?is this fair, transparent and consistent? How can we improve on this?
* Do we have clear job descriptions?if not, how can they be improved? Do we fully consider the kind of person we are looking for when a vacancy arises?
* Do we grade jobs? If no, what would be the benefits if we did?
* What issues do we take into account when we decide how much a member of staff is going to be paid? Are there other things we should consider?
Benefits
When researching local practice on salaries, it is helpful to also collect information about staff benefits that other organisations provide. Organaisations that cannot afford to pay high salaries could offer a good benefits package in order to attract staff.
Benefits could include:
* medical cover
* death in service provision
* provision for retirment
* various types of leave
* allowances such as free transport to and from work
* flexible working hours
* learning opportunities
* staff retreats
* personal use of office equipment
* accommodation.
In this section we look in detail at some of these types of benefits. It is not always necessary or possible to provide all of these benefits to staff, but according to the local, situation it may be appropriate to provide some of them. Whatever benefits are provided, it is important that they are provided to all categories of staff where possible.

For medical cover and death in service, insurance is sometimes available. In some countries, employment law states that certain types of insurance must be provided. Types of insurance that organisations could provide are given in the next table.
Organisations usually find it easiest to provide such benefits by taking out policies with commercial insurance companies. However, this is not always possible. Where insurance companies are not accessible, the organisation could consider whether it can provide such benefits itself.

WHERE INSURANCE COMPANIES ARE AVAILABLE
* Decide with company to use:
1. Use an insurance broker for advice where possible. Otherwise find out what companies similar organisations use.
2. Investigate the companys reputation. How long has it been established? What is its past history for paying when a claim is made?
* Consider how much it will cost to take out a particular type of insurance for all staff. Remember that excess charges may need to be paid in order to make a claim.
* Ensure that staff members complete the necessary forms and attend any medical examination required by the insurance company.
* Consider what will happen if a member of staff is involved in an event that is excluded from the insurance cover. Will the organaisation cover the costs?
WHERE INSURANCE IS NOT AVAILABLE:
* Find out what common practice is amongst local organaisations. Have they set budgetary limits for medical and heath in service provision?
* In order to budget for medical and death in service cover, calculate past costs of medical provision for staff and find an average. Multiply this average by the number of employees to give a total. Where there is no histrical data, ask other local organaisations what a likely cost would be.
* In order to reduce financial risk on medical cover, it is wise to set a monetary limit for each staff member, where local law allows. The staff member could also make a contribution towards medical costs, such as 20% of all claims. There could be exception to such limits. For example, if an employee requires medical treatment due to a work-related incident, the organaisation may cover all the costs.
* Organaisations should decide how they would address long-term illness such as cancer, hepatitis, HIV and diabetes.

Once each type of insurance scheme is in place, the details must be communicated to staff members. They should be made aware of the basis of cover, essential criteria and exclusions, and how to claim from the policy.
NOTE: There are some types of medical provision that enable people to carry out their jobs, particularly those who travel. These may include vaocinations, malaria treatment and mosquito nets. These should be included with the equipment that is provided to staff as relevant to their role. Rather than viewed as a benefit.
Provision for retirement: in some countries it is either customary or a legal requirement for employers to contribute towards a staff member's future retirement. Such contributions are usually a percentage of an individuals salary and are made in addition to the salary. The contribution should be clearly indicated on the payslip.
Relocation allowance: it is worth considering providing a relocation allowance for staff who need to move residence to another area of the country in order to work for the organisation. Such an allowance could be a contribution towards transporting family and possessions to the new location. It could also provide for temporary accommodation after relocation.
LEAVE
Policies for the following types of leave should reflect local law and common practice.
Annual leave: it is very important for staff to have a certain amount of rest from work during their contract. All staff members should be entitled to a number of days of paid annual leave.
Issues to consider include: * How annual leave will be calculated for part-time or short-term contracts. For example, someone on a three-month contract could be allowed to take one-quarter of the annual leave entitlement of permanent staff. Someone who works half-time could be entitled to take half the number of days that a ful-time member of staff can take in one year.
* How staff will apply to take their annual leave. It is important that all staff members do not take annual leave at the same time. Where possible, leave should be taken proportionately through the year.
* Whether staff members can carry forward unused annual leave to the following year.
National hollidays: a list of recognised national and local holidays should be prepared and circulated to all staff members. Provision should be made for staff members who have to work on any of those days. For example, they could be paid extra or they could take an additional days paid leave.
Overtime: organisations should consider how staff are compensated if they work more than the normal number of hours per week. For example, they could be paid for those hours, some times at a higher hourly rate of pay, or they could be awarded with additional leave.
Short-term sick leave: short-term sickness is usually defined as a periods of sickness that last less than a certain number of weeks. Sometimes, local law or practice requires staff to produce a certificate from a doctor if they are absent from work for more than a certain number of days. Sick leave should never be viewed as additional annual leave. A certain amount of sick leave should be paid but it is wise to ret an annual limit to discourage staff from abusing this benefit.
Long-term sick leave: long-term sick leave is usually defined as a period of sickness of more than the period set for short-term sick leave. Often, allowances for long-term sickness are based on the length of employment. For example, staff members who have worked for the organisation for over one year may be entitled to more paid long-term sick leave than those who have served the organisation for less time. If a staff member is unable to work for a long period of time as the result of an accident at work. it may be appropriate for the organisation to provide them with greater support than usual. Staff on long-term sick leave should be monitored very carefully. Organisation should remain in contact with staff members who are on long-term sick leave in order to show concem for the staff member, and to assess when they can return to work. If the staff member is unable to carry out their position and consider whether a more appropriate position could be need to review their position and consider whether a more appropriate position could be offerd. paid sick leave usually only applies to staff who haue an employment contract. It would not usually apply to those carrying out casual work.

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