Hi,
I'm employed with a furniture and fixture manufacturing company in XYZ. These days, we have lots of projects that need to be completed on time. Employees are aware that if they leave at this time, management will do anything to retain them. Employees are resigning and blackmailing the management, stating that a decent salary hike is the only condition under which they will withdraw their resignation. This has become the norm of the day. Please advise on how to stop this practice.
Warm regards,
Saumya
[Name of the place edited to ensure privacy]
From India, Mumbai
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1I'm employed with a furniture and fixture manufacturing company in XYZ. These days, we have lots of projects that need to be completed on time. Employees are aware that if they leave at this time, management will do anything to retain them. Employees are resigning and blackmailing the management, stating that a decent salary hike is the only condition under which they will withdraw their resignation. This has become the norm of the day. Please advise on how to stop this practice.
Warm regards,
Saumya
[Name of the place edited to ensure privacy]
From India, Mumbai
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Dear Saumya,
In pure economics, the theory of supply and demand works here. If the company has no pool of workers to recruit from, they have no choice but to give in or lose business. Please provide more information about the size of the firm, what pay is like compared to other similar organizations, how long the firm has been in business, etc. The more information you can provide, the more precise the advice you will receive.
From United Kingdom
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In pure economics, the theory of supply and demand works here. If the company has no pool of workers to recruit from, they have no choice but to give in or lose business. Please provide more information about the size of the firm, what pay is like compared to other similar organizations, how long the firm has been in business, etc. The more information you can provide, the more precise the advice you will receive.
From United Kingdom
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Hi, We have 500 employees. Our Organisation is know for having latest machines and using latest technologies. People from our Company are picked up by competitors and they are offered double salary.
From India, Mumbai
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From India, Mumbai
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You have answered your question. If competitors are offering double the salary that you pay, would you not be tempted to leave? Any organization has to pay its workers in line with what others pay, or they will have attrition. Maybe introducing a loyalty bonus may stem the rot for a while.
From United Kingdom
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From United Kingdom
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Generally speaking, after the liberalization in India, which coincided with the waning of the Labour and Trade Union movement, it has been the employees in general who were at the receiving end.
Summary termination without even notice or notice pay, bifurcation of Minimum Wages, denial of Maternity Leave, denial of gratuity, etc., are just some of the excesses committed by small companies. Such cases are being documented from time to time in CiteHR for all to see.
People talk about "Laissez-Faire" or free-market economy as the reason for such a situation.
It also means allowing the Law of Demand and Supply to act.
Under these circumstances, employers have always had the upper hand as there were more people chasing fewer jobs.
Now, the situation seems to be reversed in the case of your company. Whatever the reasons, employees have got a chance to dictate terms.
In my opinion, this is a good situation. It will force employers to treat employees a bit better than they have been doing so until now. Maybe some companies will start seriously thinking about Retention Strategies and Employee Motivation - which so far are encountered only in classrooms by MBA HR students.
Warm regards.
From India, Delhi
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Summary termination without even notice or notice pay, bifurcation of Minimum Wages, denial of Maternity Leave, denial of gratuity, etc., are just some of the excesses committed by small companies. Such cases are being documented from time to time in CiteHR for all to see.
People talk about "Laissez-Faire" or free-market economy as the reason for such a situation.
It also means allowing the Law of Demand and Supply to act.
Under these circumstances, employers have always had the upper hand as there were more people chasing fewer jobs.
Now, the situation seems to be reversed in the case of your company. Whatever the reasons, employees have got a chance to dictate terms.
In my opinion, this is a good situation. It will force employers to treat employees a bit better than they have been doing so until now. Maybe some companies will start seriously thinking about Retention Strategies and Employee Motivation - which so far are encountered only in classrooms by MBA HR students.
Warm regards.
From India, Delhi
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Hello Saumya,
I believe you are discussing regarding workmen category. This is the time most of the employee start looking for new opportunities; to retain them we need to provide them with competitive pay and better working environment.
Today’s in this competitive world employees drive the organization not the machines. I would advice to prepare a legally validated employment contract with 2 month notice period. The wise thing is always have back of plans to deal with emergency situation (additional employees’ arrangement).
I believe this will be the learning instances for you; I would advice straight talk with the management about the issues and be ready with the probable solutions. If you provide better pay, benefits, development plans and working environment employee will be happy to work with you.
Hope this may help you in finding a solution to this situation.
From India, Bhubaneswar
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I believe you are discussing regarding workmen category. This is the time most of the employee start looking for new opportunities; to retain them we need to provide them with competitive pay and better working environment.
Today’s in this competitive world employees drive the organization not the machines. I would advice to prepare a legally validated employment contract with 2 month notice period. The wise thing is always have back of plans to deal with emergency situation (additional employees’ arrangement).
I believe this will be the learning instances for you; I would advice straight talk with the management about the issues and be ready with the probable solutions. If you provide better pay, benefits, development plans and working environment employee will be happy to work with you.
Hope this may help you in finding a solution to this situation.
From India, Bhubaneswar
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Hi Saumya,
This happens in many places. To avoid such problems, keep on taking trainees at a low cost with a training period of six months to one year so that, once the other employee threatens to resign, the best trainee will take over. This will make other experienced employees think before asking for a threatening pay hike. One important thing is supervisors are not thorough with the work. They depend on their subordinates for any work, and this is the main problem that persists for employees threatening to resign or asking for a pay hike. Management should never lose their balance over this type of threatening pay hike. However, sincere and loyal employees should always be rewarded.
From India, Madras
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This happens in many places. To avoid such problems, keep on taking trainees at a low cost with a training period of six months to one year so that, once the other employee threatens to resign, the best trainee will take over. This will make other experienced employees think before asking for a threatening pay hike. One important thing is supervisors are not thorough with the work. They depend on their subordinates for any work, and this is the main problem that persists for employees threatening to resign or asking for a pay hike. Management should never lose their balance over this type of threatening pay hike. However, sincere and loyal employees should always be rewarded.
From India, Madras
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Hi Saumya,
You have a good opportunity to restructure your salary grade with this challenge. Don't view this act of employees as "blackmail." These are just words from owners and stakeholders. You are in HR; think and react differently.
Immediately conduct a SWOT analysis for your existing workforce in coordination with your management. Inform them that if they don't act, they will be at a disadvantage going forward, and as HR, you will need to put in extra efforts to maintain the workforce.
"Job evaluation" is the best way forward. It will help you compare jobs to assess their relative worth for establishing a rational pay structure.
Don't rush to match competitors paying double salaries. Develop a long-term plan for the company. Focus on providing fringe benefits, implementing a good appraisal system, and creating a growth structure within the company.
For instance, consider implementing "3 performance bonuses" a year and other incentives.
Wishing you good luck and urging you to see the challenge ahead as an opportunity to excel as an HR professional.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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You have a good opportunity to restructure your salary grade with this challenge. Don't view this act of employees as "blackmail." These are just words from owners and stakeholders. You are in HR; think and react differently.
Immediately conduct a SWOT analysis for your existing workforce in coordination with your management. Inform them that if they don't act, they will be at a disadvantage going forward, and as HR, you will need to put in extra efforts to maintain the workforce.
"Job evaluation" is the best way forward. It will help you compare jobs to assess their relative worth for establishing a rational pay structure.
Don't rush to match competitors paying double salaries. Develop a long-term plan for the company. Focus on providing fringe benefits, implementing a good appraisal system, and creating a growth structure within the company.
For instance, consider implementing "3 performance bonuses" a year and other incentives.
Wishing you good luck and urging you to see the challenge ahead as an opportunity to excel as an HR professional.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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