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Thread Started by #nischal2000

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
31st October 2011 From India, Karimnagar
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!
31st October 2011 From India, Bangalore
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
31st October 2011 From India, Madras
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
31st October 2011 From India, Yavatmal
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.

31st October 2011 From Germany, Hallbergmoos
Will he accept for a promotion in terms of designation alone?? would it be feasible from your side
31st October 2011 From India, Madras
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).
31st October 2011 From India, Bangalore
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.

31st October 2011 From United Kingdom
If the company is least concerned with the motivation of employees, why you are worried about retention of employees?
1st November 2011 From India, Delhi
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.
1st November 2011 From India, Bangalore
  • This is very common problem faced by any HR. A consistent, prudent and fair stand on all such situations will prove you as a good HR.
  • Firstly convince yourself about employees argument and demand. In case you are convinced then alone you will be able to present his case to management and may get positive response from management. Do not look at this case as a case of individual but have a organization wide perspective. Management wants you to be HR of entire organization and not of a individual. Your presentation to management should be for set of employees and not for individuals.
  • Lastly, in spite of your best efforts management may not agree with you. But do not ever give any false promise or false hope to employee. Be very clear and transparent and let employee make his own decision.
  • In such a situations only thing you can do is put in your fair and best efforts and forget about outcome or results.

1st November 2011 From India, Pune
Dear Nischal
In my views it is always better to retain the talent than to think about any other option. To retain the talent is a complex issue and this needs a prudent experience. ponder about it talk to the other seniors and then take a stand.
1st November 2011 From India, Madras
Dear CiteHR members,
Same thing had happened with me as I was not given my due appraisal despite promises from the management.And also it happened for 2years that I was have a great output at work but still was never motivated else appreciated.
Infact juniors were hired at higher pay packages and it was really disheartening that freshers were hired at higher pay packages.Why is it so that hard work was not valued and even asking for hike called for critiscism.
Infact,I was willing to participate in the activities enthusiastically but was demoraled by everyone.
Although my experience and work profile were good but still new companies hire only for minimal rise on last pay package.
How to rise please suggest??How to grow in monetary and knowledge terms???
Please,please guide....
1st November 2011 From India, Delhi
Hi Nischal
This is a very common scenerio. As an HR person you must act immediately. Get the permission from the Management to terminate the employee immediately. Call him to your office, tell him that he is a very able and important part of the organisation. It is also true that his salary is less compared to the market rate.
Still, the company has its own policies and procedures. It is very difficult to revise the salary of one employee,especially under a threat that he will quit if it is not done. So give him the assurance that he will definitely be compensated at the time of annual increment. His case will be considered as aspecial case too.
All said, if he still insists that he will quit, get his resignation then and there, accept it and show him the door with all end service benefits.
Inform the conserned dept about his exit, tell them to share the additional resposbilities untill a new person is recrited on emergency. Go for an immediate replacement.
1st November 2011 From United Arab Emirates, Dubai

1. First of all when he was hired, you (the management) would have shown him the salary structure and compensation for the post, right? If he felt that his salary was low, he should have demanded more at the time of interview itself. After accepting the offer and joing the organization and even worked for sometime, then he starts saying that his salary is lower than the market standard, means he is indecisive. Leave alone how important the role is.

2. Secondly, just because someone puts in his resignation, you should not increase his salary. As someone rightly put it, if you start doing so, everyone will start the same strategy of putting you a threat of resigning and then demanding more. There is no end to it.

3. What you should ideally do is that try to understand the salary level of your industry. If you feel that you are paying reasonably a good salary, you need not worry.

4. These kind of people (working only for money) will not look at other benefits such as organization's background, growth opportunities for the organization and self in the long run, conducive work environment, freedom to take decision, etc.

5. Even if you increase his salary, what is the guarantee that he will not still look for a job still. If someone offers a better salary, he will still quit.

6. therefore try to talk to him and have patience till next annual review. If he does not have patience, allow him to push off.

1st November 2011 From India, Madras
It's the duty of the management to think on the matter. if the employees are under paid and looking for green pastures as a HR you can't get it solved unless the management of the organization steps in and decided something about increments, hikes.. etc. it's some thing like management set the rules of the game and you play accordingly..
Md. Mujahid
1st November 2011 From United States, Washington
kindly do some wage survey as you described about the market standard select some of the competitor company and do the survey and submit the same to your mgmt about the present uprising tread in the salary hike this will help you to have a clear discussion with ur mgmt
2nd November 2011
Pls suggest me if a employee join a company and after one month he dead in a road accident, he is covered under gratuity act or not,
2nd November 2011 From India, New Delhi
Dear Hitesh,
Pl.clarify -
1. Was the deceased employee met with the fatal accident while he was on official duty? / in the course of employment ?
2. He served for only one month, presumably he has't fulfilled the qualifying service. Does your co. follow Gratuity Act or your own gratuity rules/fund based scheme ?
3. Does the employee covered under Workmen's compensation Act ?
4. Was he covered under DLIS as a part of EPF ? or ESI Scheme.
Pl.exmine the issue from the above view point and clarify so that it will be easy to give my opinion.
Sorry for his tragic demise.
2nd November 2011 From India, Bangalore
Hi All,
Ideally i would have compared the salary standards and later would have asked Employee to eye higher designation with higher expecting salary, as Employee had already served the organisation for a decent tenure so he would definitely look for growth along with salary. The words to be used are to be well chosen and very clear.
Thanks & Regards,
Nalla kishore
Team Lead HR
2nd November 2011 From India, Bangalore

You know, no one is indispensible. When a King dies, the Kingdom does not end with him - it goes only.

I think you have taken him from some company where his salary was low and you have given him a raise accordingly, maybe it is not as per market trend but it was one that he accepted. Why did he accept the same in the first place? Everyone feels that his/her salary is lower than either his collegues or the market. You cannot please everyone. You should tell him that when the offer was made, why did he not raise his displeasure at the amount offered or tell you'll that the amount offered was lower than the market prevalent rates ??? if he didnot make his point vocal at that time, he should give you time to make the correction. He cannot hold you at gun point. Tell him what he is doing is completely unethical and something which will not help him in his career path as sometime along the way these wrong moves do have a habit of catching up with you.

My advice to you is, tell him the above and if he still wants to move, let him go otherwise he will create a lot of negativity around him which will cause more damage. I am speaking from experience. I had an identical case although the person was not so critical as maybe in your case, but after putting things on the table he realised that it was as much his fault because a Company will always try to negotiate and get people at the best cost possible. However in my case the person stayed back understanding what I told him and I did respect his case and got the necessary correction done in the next financial year.
3rd November 2011 From India, Nagpur
Dear Mr.Buddy, You can give suspense pay in a way that his pay suits to his cadre in that Orgn. It should be confidential and convince the employee to put it confidential. Sathish Reddy P.
3rd November 2011 From India, Jaipur
Dear Mr.Buddy,
He might have accepted lower package keeping his salary (old orgn.) in mind. But here, his cadre fellows may be drawing more. So it is better to be settled confidentially. First of all, you have to know that this is era of employees.
Sathish Reddy P.

3rd November 2011 From India, Jaipur
Let it be so what? In this case the poster says that he is not comparing his salary with the existing people in the organization. He says that he is getting salary not as per the industry standard.
So what if it is employees era? You mean to say that they will dictate terms with you and you will keep honouring their salary increase.
there is no confidentiality in this. You need to be straight foward and open to employees. If you (management) do dilly-dallying business like this, you will end up in trouble.
3rd November 2011 From India, Madras
If the guy has potential and you consider him as an asset, nothing wrong in negotiating the pay hike. There is no rule as to the hike should be made in the next apprisal cycle. It can be in the interrugnum also on case to case basis.
3rd November 2011 From India, Lucknow
Hi Nischal,

First of all tell me, do you, as an HR , actually able to evaluate as to if mgmt is right on this part or the employee? i.e do you think that the employee is actually getting a lower package as to his performance and in comparison to others' packages Or all the employees are getting lower package than the mkt Addition to that do you think this person can actually get a higher package if he quits and joins somewhere else.

If the company is paying other employees more than him in spite of his good performance in comparison to others then its your duty to talk to management and bring his contribution to the company in their notice. But,Employees generally use this trick in a situation when Management or some other authorized person has praised the employee in some words which conveys the message that the company will suffer without the presence of that particular person in the organization.

It doesn't mean you are not to praise them and motivate them. Rather it is the job of HR to appraise their work in a manner which conveys a msg that company praises their performance only as long as they are part of the organization and working for its welfare as its member. But they can't dominate the company management anyhow.

So better if the employee is having any this kind of thing in his mind that company is to agree on his conditions, then it will give him a message as he can drive the management as he wants to. But yes if the employee is actually being paid lower package instead of his extraordinary contribution towards the organization welfare then Management must realize this and should give him a reasonable hike. This is a situation where your true qualities of an HR are to be examined. Now you will have to play the role of a bridge between mgmt and the employee. All the best and do share what finally the results are ....

Thanks & regards,

Renuka Prashar.
3rd November 2011 From India, Jaipur
Hi Renuka,
Thanks a lot for your help. I had the same thought in my mind wherein I did not want this guy to drive management at his will. The problem here is this guy was offered a hike based on his package from his last job; which was less. But here with us he has evolved as a key resource, and now asking for a pay raise. I Tried negotiating with the management about this issue, but the main worry is if this will send a wrong message to the rest of the folks in the team. I don't want any other fellow of the Team to get inspired by this guy's hike. For now, I am planning to suggest his direct manager to start preparing for a backup. please let me know if you have any other thoughts to retain this guy.
3rd November 2011 From India, Karimnagar
Hi Nischal,

First of all tell me that you said that the guy was offered a hike from his last job. Is this information given to you by the guy himself or you have verified yourself. Because it may be possible that the person is just pressurizing the management by creating rumors so better if you verify it on your level if you can. Second thing , I think you should try to drive this person according to his mental state. See Nischal, I think you would agree with me that HRM is all about the psychology of persons. and generally people listen and agree upon the things in the way they want to listen it. So better if you can somehow read his mental state that it will help you to take a decision which he will accept happily.

This can also help you to retain that employee.

How to do it and taking right decision at right time is in your hand.

I hope you understand my point. Beside that , if the person is just threatening on no facts then you need not to worry, he will not be going anywhere. But yes, again I will suggest you a thing, if you really think that the salary of the employee is actually low as per his performance then you should keep on trying to convince the management. Because, it will not work for long.

Hope it will be helpful,

Thanks & regards,

Renuka Prashar
3rd November 2011 From India, Jaipur
Hi Nischal.

When an organization recruits an employee, the organization makes him an offer of employment and only when the individual has acepted the offer, he joins the company. So, today, if the employee feels that what he was offered in the past is less, he is also partly responsible for it. He cannot blame the organization. It is immaterial to think whether he was taken at a lower salary or not.

Now, any organization cannot randomly reconsider any employee's salary at any point in time of the financial year. If a company does this, it will be doing only this and nothing else. This is the reason why we have appraisal cycles. The organization considers the productivity of employees and gives them a salary hike during the appraisal cycle. Your employee must be mature enough to understand this, and you must convey it to him with conviction. Mr. Pon has suggested that there is no rule that you wait until the next cycle. If there is no such practice, the organization will suffer.

Now, no person is indispensible. The organization wont close down if one employee resigns. So get all your heads to have a proper business continuity plan. What would you do if this employee were sick and bed ridden for a long period? Shouldnt you be prepared to run business as usual? So the leads should identify and train second in line.

Now, having said that, it is also imperative for the HR to make sure that the workforce is contented and motivated to work. So, if you see a need to increase the pay of this employee, and if it is in your power to assure a hike, give it to him in the next appraisal cycle. Show him what aspects of his performance have indiced this hike and what you appreciate about his performance. Also, show him what you expect in his performance for the coming cycle.

DO keep the forum posted of the outcome.
3rd November 2011 From India, Madras
Very simple. Please find out from his personnel file what his pay in the last organization was. Also, compare what his peers are getting in the organization. See if he is paid lesser than them. At least this differential can be met. Now as far as the question of 'this employee' getting paid lower than industry standards is concerned. You can actually do some research based on industry & type of experience. Also try to line up a few candidates and see how much the replacement costs you. You will get a fair idea about industry norms.
Your employee might go job shopping and come back to the table with a new offer from another firm and bargain with you. You can share this with the management and let them take a call because their actions will lead to an inflation in the salary bill.
3rd November 2011 From India, Nasik
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