Standard Group employees get a ‘marginal’ pay rise

NAIROBI – The Standard Group has announced a salary increase for all its employees and adopted a performance-based reward system that will determine who gets a raise or promotion in future.

This is good news for the employees of the Group – which owns The Standard newspaper titles, KTN, Radio Maisha and PDS – coming at a time when inflation (now hovering at around 20 per cent) has eroded stagnant incomes of the working class in Kenya.

“In view of the sustained rise in inflation and cost of living,” Ms Nelly Matheka, the assistant director in for legal and human resource (HR) administration, says in a circular to all employees, “Management has decided to make marginal increases in staff salaries even though the prevailing economic condition is a constraining environment with respect to the business revenue generation.”

 The term “marginal” was, however, not defined in the circular with a figure or percentage, leaving employees guessing on how much the pay increase will actually be. Further, the Group has moved forward the salary review date from July to January of every year, bringing it in line with the practice at its rival, Nation Media Group.

But a cynical employee who talked to BUSINESS TODAY said: “That’s peanuts. Just look at what Nation gives its staff. At last Christmas everyone was given Ksh10,000 as bonus.” Like this cynic, many at Standard Centre, I&M and the bureaus, are not holding their breath, saying the marginal raise is likely to average Kshs3,000 depending on someone’s salary.

“As is the policy, the salary adjustment will exclude anyone who got an increment of any form during the last quarter preceding this increment, anyone who was appointed during the last quarter and those on probation,” Ms Matheka says in a circular dated January 27, 2012. The exclusion clause is likely to cause tension at Standard Group centre, given that most expected across-the-board review of salaries.

Also excluded, according to an inside source, are unionisable employees who benefit from collective bargaining agreement by their union. And to ensure only deserving cases live well and laugh to the bank, the company will now base its salary review on hard work and creativity.

This is the system being used by many companies globally to not only to increase productivity but also stimulate responsibility and creativity among employees. “Further, Management has adopted a performance-based reward system where every employee’s individual performance is monitored and a panel-based evaluation will be conducted from time to time to determine those deserving merit increments,” Ms Matheka says in the circular.