FROM: Karen Coster, GM Finance & Administration
TO: Ben Russell, CEO
CC: General Manager, Human Resources
SUBJECT: Salary and Wages Budget
You may recall that at our recent off-site management conference, we discussed a number of important strategic HR issues, including the review of our remuneration and benefits policies and the possible appointment of additional staff.
I attach the approved Salary and Wages budget for the current financial year. As you may recall, these figures were based upon a total establishment of 167 (full-time equivalent) employees.
Please note that our agreed Salary/Sales KPI is 21%. Based on projected sales of $60.96m for the year, we are currently running at 20.59 %.
Figure 1: Summary of Star Industries Salaries and Wages Budget (for 12 months, commencing 1st July 200W to 30th June, 200X)
Position |
Estab. Positions |
Base pay ('ooo p.a) |
Penalties & O/T |
Benefits/ loadings |
Super |
Other on costs |
Total ('ooo p.a.) |
CEO |
1 |
200 |
- |
42 |
30 |
40 |
312
|
Level 1 |
2 (@$90k) |
180 |
- |
60 |
27 |
36 |
303 |
Level 2 |
2 (@$75k) |
150 |
- |
30 |
22.5 |
30 |
232.5 |
Level 3 |
9 (@$60k) |
540 |
- |
108 |
81 |
108 |
837 |
Team Leaders |
8 (@$50k) |
400 |
40 |
80 |
60 |
80 |
660 |
Shift Supervisors |
12 (@$50k) |
600 |
60 |
120 |
90 |
120 |
990 |
Officer/Assistants |
14 (@$50k) |
700 |
70 |
140 |
70 |
140 |
1120 |
Staff |
F/T equiv, 120 (@$45k) |
5400 |
540 |
540 |
540 |
1080 |
8100
|
TOTAL
|
167 |
8170 |
710 |
1120 |
920.5 |
1634 |
12554.5 |
I'd like to point out that on current salary/sales ratio has been stable at an average of 21% for four years now. I consider our careful attention to cost control - particularly wages, as a major contributing factor to our ongoing success at STAR and would caution you against committing us to a more risky strategy by agreeing to increase salaries and wages at a time when we have already committed $2.684 in reserve funds to our expansion plans.
I think we should talk this through as soon as is convenient
Karen Coster
Back to top