Employee Trying To Quit For Salary Hike - CiteHR
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Hi All,
I have an Employee who claims that his pay package is very low compared to the Market standards. I put his request across to the management about the pay hike. But the request was declined stating that this would motivate others to go head and ask for Salary hike. The problem is that this resource is an core resource and was hired on less package from his last job. This guy is not ready to accept any thing other than a pay hike. I have tried convincing him on company policies, other benefits, promising to consider him in next appraisal cycle, but still no luck. This guy threatens to quit if salary not raised and the management is not ready for the Hike.
Can you please help me with a way out of this situation. I want to retain him.
Thanks in Anticipation,
Nischal Kumar

Hi Nischal,
First, why was this employee hired on a lesser package? Is that because of your industry standards. Again is your company an IT company? One this about your management is correct as if you hike his salary as a retention tool, this may become a negotiation tool for your employees to hike their salary.
First find out whether he has another offer. if so, ask him to share the opportunity details. Many employees will not accept to this. However you may still require to convince that you will show this to the management and speak about his compensation appraisal. Apply a SWOT analysis about this employee leaving your organization. Share the same with your employer.
My brief advise is that to have a skill matrix done and start de-risking your employees. Starting from Niche skills to Vanilla skills.
Good luck!

Is his resignation will have a great impact in terms of replacement and other issues ?
If yes, then, try to pay him a separate allowance in voucher payment every month till the company next revision for all your staff

Dear Nischal,
How you can retain this employee without increasing his salary? (As pay hike is most important to his)
My opinion is that if management is not ready to increase his salary then showing other benefits is wasteful. If he retain because of these benefits then i don't think his performance will be increase?????????
With Regards,
Vineet Deshmukh

1. Go for Compensation survey study with in the industry. Orgn should have their own standard in terms of monetary part.
2. If management is ready to give him handsome hike as per market standard in coming appraisal, If possible take written confirmation from the management & speak to him.
3. This situation will help you to understand what is in the mind of the management.
4 If organisation give nuts, they will get monkeys. Value those who really deserve.

Will he accept for a promotion in terms of designation alone?? would it be feasible from your side
It is unfair to deny the deserved. This is moreso as you realised he was hired for lower pay. Pay for the product especially at a time when he found his worth in the industry. you should be prepared to pay for the product you buy. Otherwise prepare for the alternative(s).

Dear Nischal,
Unlike others that have given you solutions, I will raise questions for you to ponder over. Then, if possible you can give some answers. My questions are in blue after your statements underneath.
Some companies do allow such resources to go and then rehire them with a higher pacakage at a higher level after a while.
Have a nice day.

If the company is least concerned with the motivation of employees, why you are worried about retention of employees?
Nischal ji,
I feel in a hypothetical situation if the employee quits and the concerned department suffers it is established that he is a
good and retainable worker.
It is evident from your post that he was working at a discount and is now asking for a hike which seems to be normal as he might have better offers which he is seriously pursuing.
As an HR you have to re - design his salary package at an optimum level or else you might end up losing him.

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