Dinesh Divekar
Business Mentor, Consultant And Trainer
Partner - Risk Management
[email protected]
Consultant In Legal Matters
+2 Others

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Hello seniors,
recently i joined an IT company. i need to handle 8 staffs, all of them are already frustrated with the management due to the salary reduction(Hourly calculation of salary ), All of them are working after the probation period (3 months) some one reached almost 1 year. and salary didn't credited in correct time. also they have pressure with work loads,
and company announced there confirmation with salary increment from 1 April 2015, but one of the important staff is given the resignation letter, i need him ..
what to do ???
i think i need to report the MD ?
how to report, what to report ?

From India, Thiruvananthapuram
Dear Shiraz,

It appears that your company belongs to SMEs category. What is your designation? Are you from HR or Team Lead or Project Lead?

If the salaries are not credited timely then this obviously will cause frustration. Going further if the salaries are reduced then it must have added fuel to the fire. Nevertheless, you have not mentioned clearly why and how the salaries have been reduced.

Secondly, if one of the staff has tendered resignation then forward the resignation to HR or MD of your company. Let them arrange the replacement within the notice period of exiting staff.

Lastly, when you discuss the resignation of the employee, take the analysis of the workload of each member. If excess workload is the reason for the employee exit, then it needs to be fixed.

Final comments: - Frustration with management is one part of the story. How are the relations among the members of your team. How many times team members volunteer to help others? What efforts have you put up to simplify your systems and processes? What efforts have you put up to reduce the future workload? What you could do on your own have you done that?


Dinesh Divekar

From India, Bangalore
You are in an IT company.
I assume it's a software development company
They were paid higher earlier because of longer work hours and reduced as overtime has come down ? Or in what other mode was the salary reduced.
There are 3 facts of life in software,
1. People will learn and leave. Live with it.
2. It is a high demand industry where good talent is in short supply. If you will have not paid salaries on time, and people have not left, eight wore only be because they do not have experience yet or they are not worth much.
So I don't think you can do much to retain this person. You must inform your MD immediately.
3. In the small or large software development companies, workload and long hours are a part of life. If your employees are crying about it, then either they do not know the scenario in the industry .....
For the rest of the things, correct information can be provided on leave after you answer the questions raised by Mr Divekar.

From India, Mumbai
Don't call it a company....

It looks like a development back-office with kind of proprietorship of MD. In many cases, the proprietor acts as a dictator, even though he is MD reporting to some management abroad.

Here the health of organization solely depend on the directorship of the MD. Until he is educated about the proper HR ways of work, the scenario might not change.

If you have joined as HR person in this organization, then this would be big challenge to bring change. Are you up to taking it?

The only way to bring this change would be through setting up / correcting the processes.

Example1: Who credits the salaries? Must not be MD himself. What are his review & reporting processes to MD? As HR, establish these processes & he would have to credit the salaries by strict deadlines without delays.

Example2: If employees have finished probation period, but haven't received confirmation, then under what contract are they working? They can actually leave any day without notice period. Work out to provide them some kind of contract without any delay, so they feel binding with the organication.

Such small changes would bring back the loyalty of employees in the organization.

Though this does not gurantee the retention; You will still face iteration in the company, but at least the guilt that they are leaving due to bad management won’t be there… :-)

Remember, engineers never leave organizations because the company policies are not good…. They adapt. They only leave for better opportunities or exterior preferences…. In case of IT, both possibilities are abundant.

Best Regards,


Under the Shops and Establishment Acts of the States there cannnot be deduction or reduction of salary of employee. To those employees whom Payment of Wages Act applies also deduction or reduction cannot be done unless authorized by law. Even for workman, there cannot be change in conditions of service under section 9A of the ID Act by reduction in wages. Reduction in salary may also attract penal provisions in some labour laws. The reduced wages can be recovered under respective labour laws. It is the duty of HR to advise Management accordingly.

From India, New Delhi
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