Autumn Jane
Workplace Happiness
Anurag Jain
Hr Manager
+1 Other

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Dear All
Would like to put across a query to you all……….
What kind of a compensation & increment policy do organizations have for people who have been with the company for a long time, say for atleast more than 5 years (chances that they will remain in the company till retirement being very high), but whose roles have not changed, have remained the same for all the years and will remain the same.
For eg: A front Office Executive who is good in her role and who is not willing to take up any new responsibilities, therefore, cannot be laterally moved nor could there be any further role enrichment, and additionally who may have already reached the limit of remuneration as per the market rates.
How does one determine the increase in compensation for such kind of individuals or roles?
Please do give your comments on the same.

Dear Muskaan

Another way to describe "stagnant jobs" is call "dead end jobs" - because the nature of these jobs do not have a career progression. The job nature of a Front Office Executive is not such "dead end jobs" because giving proper training and development, the job can be enlarged.

In your case, it is the jobholder that is not willing to take on the added responsibilities. Here are two possible options for your to explore:

1. When the job reaches the maximum of it's salary range, wage freeze kicks in. No further increment until such time when the job is enlarged or an upward market movement that requires you to update your salary structure. You may, however, reward her a lump-sum variable amount at year-end to recognize her good contribution.

2. Annual increment can include the following components: Inflation % (across the board) + merit % (performance driven) + market catch-up %. Because your jobholder is still performing at an acceptable level and you want to retain her, you may also look at adding a small component for loyalty. But please do your sum first before any implementation.

There is however a 3rd option, but it needs an open mind to accept and implement:

Because of the market is coming out from a recession, do think about - with the same amount of salary being offered to current jobholder, you are able to get a more competent and right attitude replacement to do the same job and willing to learn and take on more responsbility. This would improve your "Value Added per Payroll Dollar" tremendously.


Autumn Jane

Dear Muskan,

Where the job roles are steady and defined and it seems that the staff will stay till the age of the retirement, you are required to do the below:

1. Explore the opportunities of Job Role Enhancement and intelligently addition of Planning, control, quality and suggestions to management as an extension of existing Job Role.
2. Estimate and project their leadership skills and find out the feasibility of assigning the job role to these persons
3. A policy could be a Appraisal Policy and not should be a increment policy. Increment is an outcome of appraisal and hence due weightage shall be given to the appraisal and subsequently the training and development of resources. How to increase the salary/wages and in what manner is a procedural part and suitable logical assumptions shall be taken. For an example: Every increment % shall contain few elements e.g.
A. Dearness%
B. On the job performance (Technical or subject matter specific / Behavioural / Coordination and Management/achievement) %
C. Outstanding achievements%
D. Future job role enhance viabilities%
E. Multi Tasking capabilities%
F. Make the total % of Increment
G. Comparable it to industry norms
H. If this already been achieved, you may recommend to management for the below [I]
I. Add Other benefits: Children education / Medical Reimbursements / Dress / Mobile / Vehicle loan / Children Marriage support / Loans and Advances for specific purposes/ Holiday Vouchers

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