Crystal Balls, Job-Hoppers, and Salary Benchmarking with AltGen

AltGen has been in the game for the last twelve years and blimey have we seen some changes. When we started out, renewable energy was one of the lowest-paying industries in the country (particularly for engineers). Now, with the industry having matured over the years, our data shows that it is perhaps one of the highest-paying globally.

In the past two years alone, we have seen a phenomenal increase in remuneration. Salary benchmarking has become more important than ever, not just as a levelling tool, but as a crystal ball. Companies need to know where salaries are going, not just where they currently sit. Salaries are predominantly adjusted annually or as a knee-jerk reaction when an employee threatens to, or receives an opportunity to leave.

We would argue that, when it comes to hiring and retaining employees in the renewable energy industry, clients need direct and up-to-date data that will ensure their salaries are market-related.

Who is who in the zoo: real-time salary strategy updates

Paying employees according to the market value of their skillset is naturally crucial to staff retention strategies. Salary benchmarking can act as a baseline for predicting salary increases, consequently allowing for accurate project costing (or forecasting future hires for anticipated projects). A survey by Leapsome recorded that a staggering 76% of employees stated poor compensation and a lack of benefits as their top motivation for resigning.

Additionally, the report stated that 44% of organisations lose their employees because of inadequate and outdated salaries. The timeline for a salary to become outdated is shorter than you might think…

>>> Food for thought:

There are several free online tools that provide data on the average salaries but very few that speak to the renewable energy industry specifically, and even fewer that speak to the context of the African market.

Using salary as a competitive gain

Some companies out-price their employees, paying them more than the market value of their skill, meaning it becomes incredibly difficult for their employees to find another employer that will match, never mind increase, their salaries. With this said, employees need to consider the ramifications of jumping ship (job-hopping) for higher pay checks and what it will do not only to their credibility in the market, but career prospects... Afterall, the best skills on the market see the value in gaining experience under their belt.

“There is a continuous weigh-up of opportunity cost, motivations, and salary. Companies need to make sure that they have legs, naturally laying the foundation for a career path for their employees…the salary will follow.”

-         Robert Veith , Sales Director - AltGen

Underappreciated and therefore under-skilled

Other companies are paying salaries that are sorely in need of an update, sometimes at no fault of their own. Although employees often stay at a company for reasons other than salary, like company culture for example, underpaying employees can encourage movement which results in an underdeveloped skill.

Furthermore, by failing to appropriately invest in a skill, companies are not only doing the industry a disservice but themselves as well. High staff turnover slows down processes, development, and innovation, and consequently can have a significant impact on profit margins as well as our collective success in achieving global renewable energy targets.

If you forget to add one or two ingredients to the cake, it is going to flop.

2030 RENEWABLE ENERGY TARGETS: AVERAGE INSTALLED CAPACITY (GW) BY REGION

AltGen: The Sweet Spot

Companies need to ensure that they are paying candidates what they are worth, but predicting this value can be difficult, particularly when niche skills in the renewable energy industry are lumped in with other industries.

Through the deployment of our extensive network of professionals, we have a touchpoint at every level. Our success in the renewable energy industry has been built on robust market intelligence that we have gleaned through three decades of working with these skills.

Over the years through our consulting and advisory services, AltGen has generated a significant amount of intellectual property. We are always happy to share these insights according to the needs of our clients. Next time you’re on a call with us, make the most of our expertise, and ask away!

Need some benchmarking advice? Call.

Careers@altgen.com | +2721 880 2561