I met with my ex-colleague this weekend and she was bit low. After 2 years working her bum off in the same organization, her recent request for a pay rise had been dropped. Her manager had said that she didn’t ‘contribute anything new or add value’ to the position.
As you can visualize, after years of working overtime, missing lunches and continuously going the extra mile to get her work done to the maximum possible standard, she found his reasons just a little bit annoying. Was her boss right to reject her pay rise? Shouldn’t hard work be rewarded? What if you just don’t have the time to “contribute something new” to the position?
While there are undoubtedly many reasons that drive workforces, it’s an undeniable truth that most employees work for a pay check, irrespective of what really affects their commitment level most.
Henceforth, compensation is a serious element in any association, and there’s simply no room for errors. Using right compensation management strategy and plan can help to reduce your risk of mistakes, make more well-versed decisions linking pay to performance, and help you develop a pay plan that’s both unbiased and competitive.
Employees receive a salary or wage for carrying out the job responsibilities. The definite salary amount paid is reliant on many reasons such as: market rates, experiences of the employee, their knowledge, their ability and skill set, and their prospective for improvement. A salary upsurge is usually provided to an employee for many reasons:
While there’s no prerequisite, legal or otherwise, for an employer to offer salary raises, it is certainly a common anticipation among employees that salary upsurges will be provided on a periodic basis.
While job performance is a main factor in any pay raise choice, but it is important to give importance to other aspects as well:
Knowing how to govern salary increases will guarantee that the process is fair and unfailing. Consider the below mentioned steps:
One thing that is very important to consider while pay raise is that there should constantly be a lookout for workforces who go above and beyond the regular call of duty. It doesn’t at all times need to come in the form of a salary raise, but viewing top performers that you identify as a value giver is not a yearly checkbox — it’s somewhat that should happen each single day.
It is at the employer’s decision when and how often salary raise will be given. Govern what would be the suitable timing & occurrence for your business.
On a consistent basis, you should be revising the salaries of your employees by relating them against roles at competitor companies with comparable characteristics and in depth salary benchmarking. You can get access to this kind of data by co-ordination with salary consultants or subscribing to different compensation databases. Once you have right to use this data, you can use it to make judgments as part of a daily compensation review.
Internal impartiality – Guarantee that there is professed equity in the salary rises being provided to workforces in the establishment who perform alike role, own a related skill set, and have a similar level of performance.
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