Employee Compensation and Expectations
I am the CEO of a company with approximately 100 employees. Our staff ranges from those earning a salary of Rs. 5000 per month to about 3 lakh per month. I am constantly puzzled by the fact that no matter how you pay/reward the employees, it is always considered as a right.
For senior staff, it is a mixture of fixed salary and sales incentive. Some of them, at the end of the year, end up receiving a sales incentive almost 100-200% of their fixed salary. For others, it ranges from 0-20%. The incentives are calculated as per a very transparent system. Each employee virtually calculates their own incentive throughout the year, and it's paid at the end of the year.
Challenges with Employee Expectations
My problem is: Whatever we tell the person is their package, they start to consider that their right. Many of them constantly expect that if they do well, the company will give them something EXTRA. In my opinion, if they do well, the sales incentive will increase anyway, so they get rewarded automatically. Why should we have to give more? And if we do it one year, then that becomes another right and expectation for the NEXT year!
In the end, we end up paying lakhs, but still, the staff feels we are not doing enough to recognize their efforts. Please suggest!!!
Thanks,
Prence
I am the CEO of a company with approximately 100 employees. Our staff ranges from those earning a salary of Rs. 5000 per month to about 3 lakh per month. I am constantly puzzled by the fact that no matter how you pay/reward the employees, it is always considered as a right.
For senior staff, it is a mixture of fixed salary and sales incentive. Some of them, at the end of the year, end up receiving a sales incentive almost 100-200% of their fixed salary. For others, it ranges from 0-20%. The incentives are calculated as per a very transparent system. Each employee virtually calculates their own incentive throughout the year, and it's paid at the end of the year.
Challenges with Employee Expectations
My problem is: Whatever we tell the person is their package, they start to consider that their right. Many of them constantly expect that if they do well, the company will give them something EXTRA. In my opinion, if they do well, the sales incentive will increase anyway, so they get rewarded automatically. Why should we have to give more? And if we do it one year, then that becomes another right and expectation for the NEXT year!
In the end, we end up paying lakhs, but still, the staff feels we are not doing enough to recognize their efforts. Please suggest!!!
Thanks,
Prence