Laeia
hi everyone
im currently studying HR at university and im really stuck on this case study.
Its about employee relations and there has been a mistake made in 3 employees contracts in regards to pay. as in these 3 are getting paid more than everyone else. i have to play the role of the hRM and solve the problem
The line supervisor and payroll manager are refusing to put thru the 3 employees wages as they say its unfair to the other employees.
All contracts have been signed.
How can i solve this problem?! im completely stuck on this and i really need some help! please help me!

From Australia, Perth
Ed Llarena, Jr.
89

Hi!

I am not knowledgeable about your labor laws but let me help out based on certain basic employment terms and references.

An Employment Contract duly signed by the authorized officers of your company is a binding document that your payroll supervisor and staff must respect regardless of the "outrage" they may feel about the "high" rate given to the three "new" employees. We assume that the salary rate was negotiated in good faith by the concerned employees.

The feeling of "outrage", anger, or resentment by old employees seeing that newly hired ones are being paid so high is a normal employee reaction. That's why salary matters, especially managerial and executive salaries, are highly confidential and are supposed to be handled not by ordinary payroll employees but a trusted and mature executive that understands executive compensation.

If this is executive compensation, then your problem is negligence on your organization: for entrusting such a sensitive issue to ordinary employees.

If this is not an executive compensation issue, but of hiring rates that are beyond the company's salary structure, then the problem is both employee and corporate.

Your payroll supervisor does not have any business meddling with pay decisions. His job is merely to make sure that every employee with the proper employment contract is included in the payroll list and is paid on the normal pay period.

If they have a complaint on the extra ordinary rate that was given lately to the three (3) employees, then they must submit their complaints to the proper forum, e.g. Grievance System (if unionized) or Compensation & Benefits Committee (if not unionized).

You would do well to have a Compensation Policy that will provide clear guidelines with regards to hiring rates and other issues.

My company has a very good HR Policy Manual that includes this policy. If you will be interested, you can buy this from us and I can extend additional assistance in solving this ccurrent problem of your company.

Best wishes.

Ed Llarena, Jr.

Managing Partner

Emilla Consulting

(helps improve corporate governance in Asia and the Pacific Region)

From Philippines, Parañaque
afolabi ajayi
6

Dear Colleagues,
The case in question as per the newly employed officers and their compensation is a matter of negotiation-this supports Ed's postulation.
On a more radical note I believe strongly that who ever handled the contract/employment documentation must have been careless or was not just professional about his/her job.
Such documents needed to be handled with all confidentiality required as it is the right of the newly employed to privacy.
In addition, depending on the status of the employees, certain documents have to be attended to by senior executives of companies as against the regular recruitment-trainee status.
I would advice strongly that whoever the culprit was should brush-up and try as much as possible to execute his/her task professionally without sentiments, join the relevant Institute/s in the land for current trends in the HRM profession.
Thanks.

From Nigeria, Lagos
Ed Llarena, Jr.
89

Afolavi,
Your rejoinder is great. But let's not forget that Laeia's problem is classroom based. It is only a case study.
I responded as if its an actual case, just to give Laeia (and the other students who are members of this forum) a feel of how consultants would react to such a problem occurs in an actual situation.
Hope we were able to help.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting

From Philippines, Parañaque
rauf111
hi
im currently writting my final project on '' partnership in employee relations'' final 12,000 words
im reallly stuck in this, i need help
if anybody has a samply project at this topic or any other material fr my help
it wll be really appreciatable....
Regards
rauf_london

From United Kingdom, London
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