How Can I Retain an Employee Unhappy with Their Performance-Based Raise?

Hello to all... Recently, I conducted a performance appraisal of two employees, and the CEO has given them an increment. However, the situation is that they are not happy with their increment. One of the employees wants to leave the company. As an HR professional, I don't want the employee to leave the company.

Seeking Suggestions

Now, what can I do? The increment they received is based on their performance. Please suggest to me.

Thanks & Regards,
Sneha Joshi

Dear Sneha,

Post-appraisal disgruntlement is common; it's nothing new. However, you have not mentioned one thing: did your company officials or CEO promulgate well in advance what the slabs of increment for the current financial year would be? These slabs vary every year due to market conditions in general and the company's business performance in particular. The second thing is, were the salaries increased exactly as per the policy? Was the implementation of the policy uniform?

If your company had promulgated the increment structure well in advance, then there is no room for sulking. In such cases, you need to counsel the employee to improve their performance further. The discontentment is also due to differences in perceptions.

Ok...

Dinesh V Divekar

Hello sir, actually, the decision on the increment is mine, but the amount to be given will be decided by the owner as I have recently joined. The increment is not uniform for all; it depends on their performance. Some employees feel that the increment is not meeting their expectations. I have tried to help those employees understand, but they are highly disappointed.

Thank you.

Handling Employee Dissatisfaction with Increment

Presume yours is a Pvt Ltd. company, and increments are based on performance, as well as employees' attitude and behavior at work. As an HR person, you may counsel the employee and also give assurance that he will be taken care of, provided he shows marked improvement in performance in the next review period.

Thanks,

Regards,
R K Nair

You have to help the employees understand their performance and the company's revenue standing from last year.

Regards,
Rejimon.CG

Performance-Based Increment Guidance

Increment is based on performance and employees' attitude, behavior at work, etc. As an HR person, you may counsel the employee and also give assurance to the employee that he will be taken care of, provided he shows marked improvement in performance in the next review period. Tell them this increment was based on last year's performance. If you do well this year, you may get more, but not in line with other employees in that category in the company.

Thanks and regards,
GJPanchal

Please check the precedents of such increments. You can review the market data in relation to salaries for the specified qualifications and experience. If you find that it is at par, then kindly counsel the employees. Otherwise, consider planning for a better appraisal system and ensure there is a backup for critical positions.

Regards,
Tikam
[Phone Number Removed For Privacy Reasons]

Performance Appraisal Format

In the Performance Appraisal Format, you should include points such as:

- Individuals' goals in the organization in the near future.
- By 2012 2013 2014
- Designation
- Salary

What Motivates Individuals

- a) Increment
- b) Secure Employment
- c) Designation
- d) Promotion
- e) Recognition
- f) Creative and Challenging Work
- g) Role Expansion
- h) Training and Development

Aside from these, you can incorporate new elements regarding employee expectations. By including these aspects, the appraiser will better understand the employees' expectations, enabling them to evaluate performance accordingly.

Regards,
Rabbany

Hello to all... Recently, I conducted a performance appraisal of two employees, and the CEO has instructed me to leave the company. However, the situation is that they are not happy with this. I want to leave the company??

As per the HR statement, I don't want to leave the company. Now, what can I do? The increment is not being given to me nowadays. What they get is according to their performance. They really appreciate my work, but somehow, I haven't received any type of increment from the company.

Please suggest what I can do - stay or leave, please.

Regards,
Jay J. Panchal.

Hi Sneha! You can ask them why a Performance Appraisal does not always lead to an increment. It is totally at the company's discretion whether they want to provide a monetary benefit or non-monetary benefits for the same. So, it is an unexpected benefit for them that the company is giving them a monetary benefit instead of a non-monetary benefit.

Thanks & Regards,
Abhay R.
Group HR Head
RH Group
Mumbai

Hello to all...

Recently, I conducted performance appraisals for two employees, and the CEO has given them an increment. However, the situation is that they are not happy with their increment. One of the employees wants to leave the company. As an HR professional, I do not want the employee to leave the company. Now, what can I do? The increment they received is based on their performance. Please suggest to me.

Thanks & Regards,
Sneha Joshi

Increment is not always dependent on the appraisal score. Increment is primarily dependent on the company budget and other factors like market parity of pay, internal parity, variable pay component, etc.

Steps to Ensure Fair Increment Process

The foolproof way to ensure that employees do not feel shortchanged is:

1. Ensure guidelines are set upfront and it is not up to the whims and fancies of the manager. Employees with the same grade and performance should get a similar increase, and there should not be inexplicable huge variations.

2. Communicate the guidelines to managers and make them own the increment process.

3. Managers need to be told that increment is their responsibility. When employees approach them, they need to own up and honestly explain the process of increase. They cannot pass on the blame to HR.

4. Make the process as transparent as possible. Employees need not get actual data figures, but a brief on how the process works will do wonders.

5. Set policies that individual compensation is personal data, and sharing this with other employees will entail strict disciplinary action. If Employee 'X' comes to you telling that Employee 'Y' is getting more salary than him, both employees need to be given a strong message that they should not share personal salary information.

Please let me know if you need any further assistance.

Best regards

Please refer to your email. I would like to suggest that you discuss with the person once again and try to convince him to stay if he is a good employee. Offer him some non-salary incentives after obtaining permission from the CEO. In today's competitive environment, retaining good employees has become crucial. It is a common challenge everywhere now.

Regards,
P. S. Narayanan