Kenyan Salaries & Pay. 2009 PricewaterhouseCoopers National Human Resource Survey

Here is the 2009 PricewaterhouseCoopers Kenya National Human Resource Survey on salaries and pay in Kenya.

Key findings on Kenyan Salaries.
• Highest paid is the CEO in the Financial Services sector at a total cost of KShs 3.9 million per month – compared to KShs 2.5 million per month in 2007 in the same sector
• Average CoE for the CEO across all sectors has increased by 30.7% since 2007 – but the economy only grew by 1.7% and 7.1% over the same two year period November 2009
• Lowest paid position is the Room Steward in the Professional Services sector at KShs 9,450 per month -up from KShs 8,001 per month for the Cleaner/Janitor/Tea lady in the Manufacturing and Processing sector in 2007
• In 2007, the highest paid position was 315 times higher than the lowest paid position. This year, it is 414 times higher.
• Awarded an annual average increment of 10.9% for management positions and 10.3% for non management positions, against an annual average inflation rate of 22.68%;
• Project an annual average increment of 10.4% for management positions and 11.4% for non management positions in the next 12 months since the last increment

Management positions – Highest paid per sector in Kenya amount in K'sh
Financial Services CEO 3,922,679
Manufacturing and Processing CEO 3,200,110
NGO, Development Agencies and Missions and Delegations CEO 1,508,435
Professional Services CEO 1,890,433
Insurance Services CEO 3,294,246
Trade CEO 1,698,280
ICT and Multi-media Divisional GM 1,385,570
Hospitals, Health and Medical Services CEO 2,688,998
Hoteliers and Hospitality CEO 1,636,333
State Corporations and Public Services CEO 1,033,292

Management positions – Lowest paid per sector
Financial Services Audit Assistant 20,961
Manufacturing and Processing Supply and Services Manager 13,203
NGOs, Development Agencies, Missions and Delegations Executive Housekeeper 26,046
Professional Services Warehouse Manager 21,000
Insurance Services Executive Housekeeper 29,447
Trade Secretary 37,540
ICT and Multi-media Assistant Marketing Manager 50,000
Hospitals, Health and Medical Services Assistant Project Officer 11,112
Hoteliers and Hospitality Supply & Services Manager 26,375
State Corporation and Public Services Section Head/Supervisor 20,000

Non management positions – Highest paid per sector based
Financial services Receptionist 188,219
Manufacturing and processing Cashier 217,417
NGO, development agencies
and missions and delegations Receptionist 130,160
Professional services Clerk 64,482
Insurance services Cashier 238,548
Trade Technician 107,260
ICT and multimedia Technician 117,350
Hospitals, health and medical
services Messenger 131,983
Hoteliers and hospitality Head Waiter 56,621
State corporation and public
sector Storekeeper 70,500

Non management positions – Lowest paid per sector
Financial Services Room steward 17,500
Manufacturing and Processing Driver (Light vehicle) 15,751
NGO, Development Agencies and Missions and Delegations Room Steward 16,632
Professional Services Room Steward 9,450
Insurance Services Cleaner/Janitor/Tea Person 26,675
Trade Room steward 11,917
ICT and Multi-media Cleaner/Janitor/Tea Person 20,667
Hospitals, Health and Medical Services Room steward 20,213
Hoteliers and Hospitality Room steward 15,355
State Corporations and Public Services Security guards 20,161

Human resource issues

These have been challenging years for organisations as they face…
• GDP paltry growth of 7.1% in 2007 and 1.7% in 2008
•Reduction in private consumption, occasioned by post election disruptions, unfavorable weather conditions, high cost of food and fuel, a dysfunctional coalition government and the global financial crisis
• High energy costs arising from the effects of drought;
• Contraction of the agriculture sector by 5.1% and of the tourism sector by 36.1%
• High inflation of 22.68% that continues to erode earnings

But…
• Continued focus on infrastructural development saw an increase by 8.3% on the building and construction sector
• This is the right step in the reduction of cost of production and distribution of goods

Organisations have embarked on a delicate balancing act of…

• Aligning salary increments to the increasing rates of inflation and yet remain profitable
• Freezing salary increments

61% have felt the effects of the post election violence drought, global recession and low economic growth…

To cope with the effects of the recession….

• 64% of the organizations retrenched staff
• 39% of the organisations process improvement measures;
• 38% introduced new products and
3% of the organisations closed or services; some branches/ended operations
• 18% of the organisations resorted in particular service areas to outsourcing of services
• 6% made pay cuts

Brain gain…return from the Diaspora

• Applications -lowest number received is 1, highest number received is 1,200 and average number received is 72;
• Recruited on average 3;
• 50% recruited into middle management and 24% into senior management;
• Most participants negotiated to fit the returning professionals into the existing salary structure;
• Main reason for employing returning Diaspora is their qualifications, experience and international exposure

In 2007, you asked us to explore the new millennials or so called Generation Y.

We asked you what your Generation Y employees want. You said in rank order:

• Access to on-line professional/social networks
• Flexible dress code
• Flexible working hours
• Gym membership
• Use of Mp3 players in the office
•Blackberries
• Working from home
• Cafeteria style benefits

We carried out a mini PwC Survey to find out what makes this breed ofemployees “tick”…

They want…

• Challenging non routine work
• Work environments where they can express themselves freely without fear
• Constant dialogue not hindered by hierarchical stratification
• 84% want to receive on-going feedback in informal settings – that can lead to growth
• 92% want to access to their immediate supervisors when they need to

Did you know that…
98% want to be trained, developed and sponsored for further studies
• They prefer on-the-job training, classroom training then e-learning in that order
• 98% want to be mentored
• Majority are not concerned about flexible dress codes
• 94% would like to go on secondment outside the country – after an average of 3 years
• 92% consider flexible working hours as highly important – “as long as expected outputs are achieved, it should not matter where the work is done”

They expect to…
• Change employers between 3 – 5 times
• Leave employment at the age of 40
• Receive competitive salaries and appreciation when they do good
• Exploit frequent challenges that offer fast growth opportunities

Their top three greatest career concerns are financial security, job fulfilment and working in a positive environment.

They want fun team building activities, sporting activities and parties – they want to participate in CSR.

Looking into the future…
Some key challenges that employers expect are:
• Retaining Generation Y employees.
• Higher pay demands due to inflation;
• Intense competition for talent;
• Staff leaving for emerging employers within the region;

The business environment will continue to be dynamic…
• The last two years have been challenging for businesses and for people management;
• Employers expect people management challenges to continue into the future;
• The Human Resource function must continue to adapt in order to address people management challenges and remain a relevant business partner.