Salary Hike [Thread 501039] - CiteHR
Ukmitra
Business Development, Employee Relations,

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Hai seniors
Iam working for a staffing company,here my boss is excellent in recognition of talent and effort,he gave hike to person i.e., employee @30% 2 times in one year and now six months passed and now he is expecting one more hike the owner ship is on me to take a descision.the problem is my boss feels the employee`s performance has gone down so badly now he is in intention to do it .and also he dont want to loose employee.
please i want immediate answer
seniors please help
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sir
Thank you very much for your advice and the attachment was very helpful but what do i do know do i say as the employee is claiming that as the market trends are bad his performance is down,so based on the same as the revenue of the organization is down the hike is also down this time.
yes iam asking what do i say and convince him i mean he was a good performer previously and so he got a hike but now i dont know for some reason his performance is down.management feel it as demotivation but i say even after 60%salary hike in salary why he will be demotivated,employee says due to market trends i could not perform or because of back offs ,but i say if its that case then take the ownership of failure and dont ask for hike
Hi Deepthi,
You are actually answering the question that you are asking?
"His Performance is Down"? Who decided this and what was the basis to this remark?
Does his reporting manager has a tangible analysis with him to claim his performance was down.?
Was the subject employee given his expectation for period this evaluation is being done.
Just because "I feel it" attitude is not good for Leaders, hope you got the point.
You need to ask yourself this question and seek answer and then make your package and sell it to the subject employee and most impt "set his target and expectation within his KRA and KPI" for next review.
Well, remember when good things have to be conveyed all wants to be in front-end to do it. But when something bad needs to be conveyed, they push some one else. Old Politics still works. Hmmm.
As I understand the manager doesnot want to lose the employee but also wants to safeguard his budget. You could act as below:

1. Understand with the manager what hike he is proposing for the employee.

2. Over and above the hike you can suggest an aggressive incentive plan (special incentive plan if required), that is in lines with the expectation of the manger and employee.

3. Agree with the manager now on treatment of incentive, if the employee is not able to meet the defined targets. Is he willing to part with some cash still if employee meets 80% or 90% of the plan?

4. In parallel speak with the employee to understand his aspirations (work/salary), what he feels worked out well last year, what the challenges were and how he is looking to address the challenges for the coming year.

5. Ensure that your proposal will meet the needs to both employee and the manager. If not, be candid to share your thoughts

6. Lastly, while communicating to the employee, ask the manager to do the talking (in your presence).

7. Last but not the least, if there are (your and manager’s) senior in the organization take them into confidence.

All the best.
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