Femi Adele presented a recommendation for a proposed salary increase. The aim was to recommend an increase that would be reasonably cost effective for the organization. It was proposed to increase salaries by 50% of the amount set aside for year-end profitability bonuses at different employment levels. This would increase the average monthly salary outlay by 5.8% from N4,548,695.36 to N4,812,769.92, which was considered a reasonable cost for the organization. The proposed salary increase was aimed at attracting, retaining, and motivating employees while remaining financially prudent.

1. 27/01/15
RECOMMENDATION FOR
THE PROPOSED SALARY
INCREASE
Presented
by
Femi Adele

2. 27/01/15
Presentation Outline
• AIM
• APPROACH
• PREAMBLE
• WHY SALARY INCREASE?
• FINANCIAL PERSPECTIVE
• PROPOSED NAME FOR THE SALARY HEAD
• CONCLUSION

3. AIM
• Our task is to recommend salary increase to
management which will be at reasonable cost to
the organisation.
27/01/15

4. APPROACH
• The approach we employed is to use a
percentage of the gross pay on the employment
letter that is set aside as year-end profitability.
27/01/15

5. PREAMBLE
• High performing organisations the world over
take their employees’ remuneration packages
very seriously. They do this by engaging in
salary review from time to time to maintain
relevance and remain competitive in the
industry in which they operate.
27/01/15

6. WHY SALARY INCREASE ?
• To attract talented people
• To retain key employees
• To maintain an excited and motivated
workforce.
27/01/15

7. FINANCIAL PERSPECTIVE
• AVERAGE MONTHLY SALARY OUTLAY (3
MONTHS AVERAGE FROM JULY – SEPT 2010)
27/01/15
AVERAGEMONTHLYSALARYOUTLAY(3MONTHSAVERAGEFROMJULY-SEPT)
MONTHS TOTALSALARYOUTLAY
JULY 4,602,529.90
AUG 4,723,247.37
SEPT 4,320,308.81
TOTAL 13,646,086.08
AVERAGE 4,548,695.36

8. • PROPOSED INCREASE: 50% of amount
warehoused at each levels for Bank’s year-end
profitability
27/01/15
LEVELS FULL YEAR BONUS 50% of FYB MONTHLY AVERAGE
EOT 277,039.00 138,519.50 11,543.29
AEO 318,604.71 159,302.36 13,275.20
EO 366,384.07 183,192.04 15,266.00
SEO 439,660.72 219,830.36 18,319.20
AM 527,593.07 263,796.54 21,983.04
DM 633,111.68 316,555.84 26,379.65

9. • TOTAL MONTHLY SALARY OUTLAY AT
PRESENT
27/01/15
LEVELS NOOFSTAFF MONTHLYAVERAGE TOTALOUTLAY
EOT 10 11,543.29 115,432.92
AEO 3 13,275.20 39,825.59
EO 3 15,266.00 45,798.01
SEO 2 18,319.20 36,638.39
AM 0 21,983.04 -
DM 1 26,379.65 26,379.65
TOTAL 264,074.56

10. PROPOSED NAME FOR THE SALARY
HEAD
• Proposed name for the income head will be
EDUCATIONAL SUBSIDY which by tax
law is tax exempt.
27/01/15

11. CONCLUSION
• Based on our current staff strength and the
number of staff in the affected levels, our
proposed remuneration package will increase
the average total monthly salary outlay from
N4,548,695.36 to N4,812,769.92, a % increase
of 5.8% which in our opinion is reasonable
considering the cost exposure on the
organisation.
27/01/15

12. 27/01/15
•THANK YOU