How Do You Handle Constant Salary Hike Demands Without Losing Your Team?

Hi All,

I am facing an issue with our current Data Entry Project, which started a few months back with 80 employees. Now all the employees are demanding a salary hike, and if it is not given, they will resign.

My concern is, even if I increase their salaries, what guarantee do I have that after another 3-4 months, they will not demand another salary hike? Additionally, these employees quit and join different organizations just because the other organization offers a Rs. 500 hike. Obviously, I cannot keep increasing their salaries every 3-4 months.

If someone could suggest or provide some solutions to tackle this issue, I would be extremely grateful. I will be waiting for valuable inputs from the members of CiteHR regarding the same.

Thanks.

Hi, Sumita.

The best thing you could do is increase their salary but also issue a notice that this type of salary increase would be done only once yearly. That is, if the increase is given now, then the next increase would be given next year at the same time. As for employees leaving the job, no one can guarantee that.

If you are giving an increment once a year, then to keep the employees happy, you will have to do some other things like asking for their opinion regarding any kind of improvement to be done, celebrating their birthdays, etc.

Chitra

Thank you for the suggestion, Chitra. But can we not make them sign a bond, say for about 6 months, so that we do not have attrition issues during production.

Hi, Sumita

Yes, you can make them sign a bond, but for 1 year rather than 6 months. Because 6 months is not a long enough period; anyone who wants to leave can even do so after 6 months. However, be very clear about the clauses you would be adding in the bond.

Chitra

Hi Sumita,

What I suggest is for you to start a performance incentive reward of Rs. 100 to 500 based on achieving the target and set specific targets. This way, you will also be able to provide all employees with this benefit, and your work quality will improve as well.

Raghav