Case Study: Remuneration at Zenith Manufacturing

Background: Zenith Manufacturing is a mid$-$sized company based in Johannesburg, South

Africa, specialising in producing high$-$quality automotive parts. With a workforce of $500$

employees, Zenith prides itself on its innovative engineering and commitment to quality.

However, the company is facing challenges in retaining key talent, particularly in technical

roles, due to the competitive nature of the automotive industry.

In recent months, several skilled engineers and technicians have left Zenith to join competitors

who offer more attractive remuneration packages. The Human Resources Director, Lindiwe

Ndlovu, has identified that Zenith's current remuneration strategy is not as competitive as that

of similar companies in the region. A benchmarking study by the HR department revealed that

Zenith's salary offerings are below the market median, particularly for specialised roles.

Additionally, other companies in the industry offer more generous benefits, such as

performance bonuses, stock options, and flexible working arrangements.

Lindiwe has recommended that Zenith re$-$evaluate its remuneration policy regarding employee

remuneration to prevent further loss of talent and attract new employees. However, the

company is also concerned about balancing its salary offerings with financial sustainability.

$3\mathrm{.}1$ Identify the remuneration building block $[1$ mark$]$ inadequately addressed in Zenith

Manufacturing. Provide specific examples from the case study $[1$ mark$]$ to support your

answer.