Hr Manager
Region Head - T & D
Isabel Paul
Clinical Psychologist Working With Corporates
Assistant Manager - Training (us Healthcare
+8 Others

Hello Friends,

We a Small size Software company, half of my employees have their Appraisal due in Jan. Seeing the current market scenario my Director want to pass on the message to the employees that we are not in the position to give a big salary hike or max a single digit hike to the employees in 2009.

Kindly help me how should i go ahead on this I would like to arrange a counseling session to the employees on current recession, pls revert back what points should I include in the same.

I don't wat to loose my current employees as they are very competent & hardworking too.

Kind Regards
Vishal G
Asst. Manager HR

28th January 2009 From India, Mumbai
dont worry.Market is bad outside, forget about giving hike, employees should be happy that they have a job.
You wont have such situation where employees will leave you, since it is very difficult to get a job outside now.
Some employees will expect a hike, but they should also understand what is the current situation.:)
28th January 2009 From India, Bangalore
I do agree with what Sonia has stated. The employees will be awae of the situation and first you should assure them that evefn in this recession, the company is ensuring to protect everybody's job. To ensure this, the company may have to take some hard step as to hold/limit the increments for some period. Thats how we can also reciprocate our belongingness to our company.
I do hope that this should work.
Best wishes,
Dr. Hemant Modak
28th January 2009 From India, Pune
But yaar they are working and they are not animals so give them proper hike. Because once you lose trust and enthusiasm of your employees you will have to incur more loss, because in this recession period you wont find such hard working employees, all will be lazyboners like I am.
28th January 2009 From India, Pune
Hi Vishal

I believe at this time of recession, companies are doing salary cutts or lay offs. Your director is sill good enough to give his employees a single digit salary hike.

Even i have done salary cutt to 30% in my organization. :icon1: and i seriously dont feel bad about it. Rather i am greatful to the company atleast they are bearing our cost.
In case in todays situation if any one cahnges his/her job - their is no job security , might be there you will be the first in the lay off list.
Lets take it postively - At this time you will come to know who is loyal and sincere to the company. Who is with you and who is not?
In future when the market picks up you will have a clear vision about whom to promote whom not, who has potential, who supported the company at critical time? Also a biggest thing that which employee acn sustain and work under pressure also?

So you yourself first take this situation normal and be positive and then council them.
tell them on Monday 26th Jan,09 when we were celebrating Republic Day- in US more than 75,400 people lost the job and it is termed as Bloody Monday so atleast thank God that you are not one of them.

Market situation may get more worse..so we have to be prepared for that also..Just work to the fullest and everything will be good.
28th January 2009 From India, Delhi
well...your Co. employee need to feel happy abt even a single digit salary hike...well there are many co. who are ding salary cutting....:(
hope they must be understing the current situation.....
Vineet Singh
9999 105631
28th January 2009 From India, Delhi
I dont look at them as employees, first make them feel as a family member. they are too human beings and understand the markets, putting accross honestly to them that we are fighting a bad time, where all the employees are reciving pink slips, and we would not like to do that, to avoid the same, we would want your suggestions.
Put the ball in their court......
meaning ask them what would they like ....
1. Hike in salary , and have few employees fired
2. Or wait for good times, till then hold on to hikes..... + bonus
3. and few other good options.
let the people vote the decission for you.
dont take head ache... its about employees, let them decide there future.
you only facilitate it for them.

28th January 2009 From India, Lucknow
I dont think you need to worry about this. I am sure that they will not expect a hike. In fact those who have jobs can thank their stars.
I am sure you can just explain to them and they will understand.
All the best
29th January 2009 From India
Hello Friends,
We all are discussing with our jobs in hand. But think of those who are on the other side. Those who have lost their jobs should reply to this in a better way. So, let them come in this thread, then the picture will be more clear.
29th January 2009 From India, Patna
Hi Vishal,
As job security is more important rather than giving hikes this hard time, as being a HR you should explain them about this hard time and convey them clearly about the job security at your company as you r worried about the loosing the employees who were proficient.
Counselling is not required as all the employees might be aware of the current situation, conveying the message is sufficient.
29th January 2009 From India, Bangalore

i have been reading everbody's views since long time on the recession..i do agree with sumeet's comment........first of all we have to take our employees under trust and let them feel as a family member.......as you said its a small company you can request your MD to address a meeting to all employees about this hard time and let the employees clarifiy their queries and future security directly with the boss.So that they will have clear idea about job secutiry and the reason of not giving any hike this time time.
If you MD thinks can assure your employees for the future benefits when the market condidtion become stable.
as sumeet said you can ask the employees about their views........i can say on this that when decision is participative it gives the feeling of recognition and also motivate the employees by their involvement in decision making.especially when crisis arises and we work as a team bond among people becomes strong.
i can understand as an HR sometime we become very hard and have to take decision which we really don't want but we also think about situation considering as an employee.

29th January 2009 From India, Chhattarpur
Hi Forward them this PPT and then declare the single digit hike decision I m sure it will work. Chetan
29th January 2009 From India, Thana
Hi sonia, If they got an offer from outside, and they want salary hike from our side then what i have to do. what i have to say can u help on this. regards chakri
29th January 2009 From India, Hyderabad
Your doubt is 100 % correct at the same way please go through the others view , if you give any good amount of increment in the earlier period also , the people from your company were leaving , so , do not worry. Think that every thing happening good for you. It is not only in India also over the world , in Dubai many well established companies are sending their employees on compulsory leave, decremental, cancel their visa . This is the right time the management feel to cut down the cost in the salary structure. This is the only the temporary situation ,
The best regards
Raman Rajamanickam
29th January 2009 From United Arab Emirates, Dubai
Dear Vishal
a) Keep the message brief and to the point- don't take a long time to set up the context , be gentle but firm. Don't be defensive (at least you have a job) or comparative (other companies are firing)
b) Listen (ALOT), empathize with their woes (EMI's) but don't be apologetic or feel guilty.
c) Offer to help in whatever way is possible within the organizational limits (check with your director beforehand on what can be done). Keep the door open.
It would be good if there is an organizational communication from the very top beforehand, as it will reduce the rumours (that can build up and blow up) as well as make your task easier.
Best of luck
30th January 2009
U hv to handle the situation carefully woth out effecting employee morale.Following are the few steps
1.A letter from the top has to be circulated to all employees explaining the business,its market and present trend keeping in view the economic melt down
2.It is the time that all employees have to sacrifiy certain things/benefits which helps the company to be on tracks
3.it appears that your company has not retrenched/asking any one to leave the job,which it self shows the greatness of the management,such being the case performance reward/increment does not come in to picture
4.Instead worrying, the employees together invite the top man and express their commitment towards the organisation and assure him of their support in facing the challanges and to sacrifies one year increment .
5 In addition they have to collectively put their efforts in reducing the cost where ever possible
if this is followed there will not be any issue
30th January 2009 From India, Hyderabad
Hi Vishal,
I am completing my PGDM course but still i m worried about my placement. So employees in an organization getting worried is quite obvious. You can actually compare economies by telling them that some of the econmies have negative GDP. Atleast we have approximately 6% GDP. We are lucky that the scenario is not so bad that thousands of people are losing their jobs. So accepting reality instead of cribbing about the situation is the only appropriate solution at this point of time. So just keep your cool and try giving your 100 percent without expecting much could be the only solution at this point of time. I hope my suggestion would help you in some way.
Meenal Kelekar
31st January 2009 From India, Mumbai
Inflation is comming down and market rates of all commodities are also stabalised to its real market worth. Due to abnormal and irrational economic growth in last 5 years indian economy has inflated artificially and IT and Banking Finance sector has further inflated the market salaries which was never heared before of 500 to 800% salary hike in last 2 years.

Now this artificially inflated mechanism has busted and financial engineering exposed that they were playing with only figures and those figures were not matching with real money in the market circulation finally everything has to get re-evaluated to real worth because financial engineering by mode of electronic money did not match with actual money (Satyam Funda) artificial figures become scrap economy and results are frustration to high flyers..............

Noe the time has come for not only slowing down of economy and inflation but more likely a deflation is very much likely in next two quarters because the worth of money is more than its circulation tag price. Money is more precious than before and become more costlier therefore salaries will be re-adjusted in next 18 months who soever did not aclamatise with this changes will loose his market and will become obsolete.

Be careful,

1st February 2009 From Saudi Arabia
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™