The relationship between inflation and wages is a fundamental driver of a modern economy's health and stability. As prices rise, the purchasing power of earnings diminishes, leading to demands for wage increases that can, in turn, contribute to further inflationary pressures. This wage-price spiral can create a cycle of instability, making it difficult for central banks to achieve their price stability mandates and for businesses to plan for the future. Understanding the mechanisms through which wages are set—from informal adjustments to formal inflation indexation clauses—is crucial for managing this dynamic and ensuring economic fairness.

This program provides a comprehensive and practical deep dive into the complex interplay between inflation and wage-setting in today's economies. Participants will gain a fundamental understanding of the theoretical underpinnings of wage dynamics, the operational impact of different compensation systems, and the policy challenges of managing a wage-price spiral. The course will address everything from the use of collective bargaining agreements and cost-of-living adjustments (COLAs) to the role of monetary policy and labor market institutions. By focusing on real-world case studies and hands-on exercises, attendees will be equipped to develop and implement strategies that promote both price stability and fair wage outcomes.

Duration: 10 days

Target Audience:

• Central Bank Economists and Researchers
• Labor Union Representatives
• Human Resources and Compensation Professionals
• Government and Public Policy Officials
• Corporate Strategists and Planners
• Financial Analysts and Investors
• Academics and Students in Economics
• Dispute Resolution and Mediation Specialists
• NGO and Community Development Leaders
• Journalists and Economic Reporters

Objectives:

• Master the core theories of wage dynamics and inflation.
• Learn to identify the key drivers of wage inflation.
• Understand the role of inflation indexation and cost-of-living adjustments.
• Grasp the complexities of a wage-price spiral and its risks.
• Develop proficiency in analyzing collective bargaining agreements.
• Explore best practices for designing compensation in a high-inflation environment.
• Learn about robust methods for measuring wage growth and labor market slack.
• Identify the critical legal and governance frameworks for wage-setting.
• Develop skills in translating macroeconomic data into HR policy.
• Formulate strategies for building a more stable and equitable labor market.

Course Modules:

Module 1: The Foundations of Wage Dynamics

• The link between labor markets and inflation
• The role of the Phillips Curve
• The concept of the wage-price spiral
• The factors that influence wage growth
• The role of a "clear and focused research question"

Module 2: The Macroeconomic Linkages

• The impact of monetary policy on wage growth
• The role of a "risk and mitigation" plan
• The relationship between inflation expectations and wages
• The impact of a "data story map"
• The effects of productivity and technological change

Module 3: Inflation Indexation

• The definition and purpose of inflation indexation
• The importance of a simple scorecard and a dashboard
• The benefits and drawbacks of automatic adjustments
• The use of different price indices (e.g., CPI)
• The role of a "clear and consistent reporting style"

Module 4: Collective Bargaining

• The process of collective bargaining
• The importance of a program's theory of change
• The role of labor unions in wage-setting
• The impact of collective bargaining on inflation
• The challenges of wage coordination

Module 5: Compensation and HR Policy

• Designing a compensation structure in an inflationary environment
• The use of a "stakeholder analysis"
• The role of performance-based pay vs. cost-of-living adjustments (COLAs)
• The importance of a clear and compelling KPI
• The impact on employee morale and retention

Module 6: Labor Market Institutions

• The role of a minimum wage
• The importance of a "risk and mitigation" plan
• The impact of labor market regulations
• The role of unemployment benefits and social safety nets
• The influence of a "clear and focused research question"

Module 7: Behavioral Economics of Wages

• The role of fairness and equity in wage-setting
• The importance of a simple scorecard and a dashboard
• The concept of wage stickiness and nominal rigidities
• The impact of a "data story map"
• The role of cognitive biases in pay negotiations

Module 8: Data and Measurement

• The different measures of wage growth
• The use of a "clear and consistent reporting style"
• The challenges of measuring total compensation
• The importance of a program's theory of change
• The role of a "stakeholder analysis"

Module 9: Policy Challenges

• The challenges of managing a wage-price spiral
• The use of a clear and compelling KPI
• The role of central banks in influencing wage dynamics
• The importance of a "risk and mitigation" plan
• The debate over wage and price controls

Module 10: The Role of a "Clear and Focused Research Question"

• The impact of a "data story map"
• The use of a simple scorecard and a dashboard
• The role of a "clear and consistent reporting style"
• The use of a program's theory of change
• The importance of a "stakeholder analysis"

Module 11: Case Studies

• Case study: The wage-price spiral in the 1970s
• The impact of a "clear and focused research question"
• The role of a "risk and mitigation" plan
• The use of a simple scorecard and a dashboard
• The importance of a "data story map"

Module 12: Global Comparisons

• Wage-setting in different countries
• The use of a "clear and consistent reporting style"
• The role of a "program's theory of change"
• The importance of a "stakeholder analysis"
• The use of a clear and compelling KPI

Module 13: The Future of Wages

• The impact of automation and AI
• The importance of a "clear and focused research question"
• The role of a "risk and mitigation" plan
• The use of a simple scorecard and a dashboard
• The importance of a "data story map"

Module 14: Legal and Governance Frameworks

• The role of a "clear and consistent reporting style"
• The importance of a program's theory of change
• The use of a "stakeholder analysis"
• The role of a clear and compelling KPI
• The importance of a "clear and focused research question"

Module 15: Corporate Strategy

• The role of a "risk and mitigation" plan
• The use of a simple scorecard and a dashboard
• The importance of a "data story map"
• The use of a "clear and consistent reporting style"
• The role of a "program's theory of change"

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.