How Can HR Boost Employee Morale Without Salary Increases During Tough Times?

Scenario:

The increment period is currently ongoing, and employees are expecting or waiting for it. However, management has already decided not to give the increment due to a decrease in sales. A meeting has been scheduled with all the Heads of Departments (HODs) to communicate this decision. During the meeting, HR is expected to present 10 different ways to boost employee morale and happiness without providing an increment. The aim is to ensure that the meeting concludes positively, with all HODs leaving with smiles on their faces.

Regards

I think if we want to make employees happy without giving any kind of increment, we have to make some adjustments to their leave or reward them with gifts or cash each month. If the employee truly loves the company, then he/she will accept the HR decision. This activity can also help us gauge how much employees love their company. Moving forward, we can show appreciation to these employees next year for supporting us during tough times by giving them good increments, etc.

Thanks

Regards

Ways to Boost Employee Morale and Happiness

1. Helping employees with any social problems.

2. Assisting with their children's education and health.

3. Supporting family budgeting efforts.

4. Inquiring about parents' health.

5. Organizing sports activities.

6. Planning entertainment programs.

7. Discussing personal goals, national achievements, and progress.

8. Exploring future plans.

9. Arranging weekend programs.

10. Engaging in discussions on price inflation.

I don't have much experience to reply to the above posting, but I am trying to share my views.

1. It's always better to convey to employees why we are not able to give the increment. I hope employees will understand. Ask them how to overcome the present condition.

2. Alternatively, prepare the budget for conducting employee engagement activities and check with management.

3. Meanwhile, create a motto that management is trying to engage employees by conducting indoor games like carrom, rangoli, and other fun activities. Employees have to feel that management is good.

4. Alternatively, prepare a questionnaire and distribute it to all HR personnel (What would you do if management is not able to give an increment?)

5. But in the meantime, have a buffer for all designations because employees may have some expectations.

6. I hope HR will provide personal and group counseling on the same.

Regards.

I re-read your post several times. "Management has decided to hold a meeting with all the HODs to inform them about not giving the increment. Management has decided that while discussing in the meeting HR should come up with 10 different ways to make employees happy without giving an increment so that the meeting ends up on a positive note, and all the HODs walk out with a smile on their face."

I am still unable to understand: What kind of management would want to do this? HODs to be informed in the meeting that there won't be any increment, the employees to feel happy about it, and HODs to walk out with a smile! And the responsibility to achieve this falls on HR! This is an interesting, if not a funny situation, and the company is relying on the Chief Fun Officers! Do share your success story.

Best wishes and warm regards.

As Raj has stated, this is indeed a funny situation. While I can understand that increments are not possible due to falling profitability, there is a danger that if you carry forward some of the suggestions, then the employees will feel more disgruntled on the grounds that if the company is able to spend money to "keep us happy," then surely that money can be given as an increment!

However, I have given this some thought, and though I have struggled to come up with ten suggestions, you may wish to consider:

1) Recognition.

Acknowledge achievements; this shows that the employees are valued, and a pat on the back is amazing for morale.

2) Personal Time.

Ask Senior Management and HODs to spend a few minutes a week face to face with each employee to listen to their concerns and get feedback; this shows that you care.

3) Work Environment.

Create a pleasant work ambiance, survey the employees' working conditions, and improve them, even if it is cosmetic. This creates a pleasant environment and boosts morale.

4) United We Stand.

Create a sense of unity, as you would in a family. For example, ask senior management and HODs to occasionally sit with employees during lunch. You will be amazed at how people bond when there is food around.

5) Extra Time Off.

Time off is as good a motivator as money. Get competitions going, where the prize is an extra half an hour off. But allow the employee to choose, i.e., they can come in half an hour late, or leave half an hour early, or have an extended lunch break. Or even set a team goal allowing all in the team to leave half an hour early.

6) Fun Time.

Coming to work and meeting deadlines is stressful enough. Have some fun in the day; this will make coming to work a little more enjoyable. This, in turn, makes it easier to come to work.

Employees want to know that they matter; many are willing to work harder when they do - without increments.

I hope the above helps.

Regards, Harsh

While reading your post, I felt like I was reading a quest and that you wanted to make fun of others. Let me try.

Company Type and Meeting Context

Exactly what type of company is this - Manufacturing, Trading, Service Provider, etc.??? I assume that so many HODs were called for a meeting by management, meaning it is a fairly big company. If it is a big and professional company, then they don’t make such mistakes. Even though a meeting is called and HODs come out with a smile, possible reasons:

- HODs always listen to the management and agree to anything and everything.
- They come out thinking, "Good, at least an indication came in time. Let us contact a placement agency for switching."
- HODs feel there is no use in putting our point across. It’s better to enjoy unavoidable circumstances.

And so on...

Solutions for Employee Morale

This scenario is a little illogical, even if you are really looking for a solution in such conditions.

1. Call the company’s well-wishers and key position holders, explain the situation, and ask for their views. It would be better than not giving increments (it is observed that people have agreed to some salary reduction, stopping additional facilities).
2. Inform your decision and ensure them that losses will be matched up as soon as things improve.
3. Declare that only performers will get hikes.
4. Talk to every individual and explain the situation. Let them decide not to ask for an increment.
5. Increase the overall performance of the company, reduce extra fat, and create money.
6. Appreciate every extra effort and acknowledge wholeheartedly.
7. Create several groups of employees and let them meet periodically with senior management members to increase involvement.
8. Explain the company’s future business plans and the efforts management is taking to improve the situation. Let them feel the message is genuine.
9. Be prepared with a backup plan.
10. Do not ever come to this type of situation and put yourself in trouble.

Regards,
Hemant Kadam

All the above members have done their best in helping you out. As an HR head (also a people representative), try to tell the truth to the management. The best option is to try and do some homework. Prepare a questionnaire and include all non-monetary benefits with ratings. Also, list a few monetary benefits with ratings. Include a few questions on work environment and culture. Include a minimum of 30 questions, especially rating questions using numbers. Finally, ask an open-ended question requesting them to explain what they feel about the company and what they expect from it.

Distribute the questionnaire, collect the responses, and compile a report.

Also, keep a list of 10 non-monetary benefits. Discuss with the management, including the CFO in the meeting, and clearly state that when it's time to provide monetary benefits, it's not productive to focus solely on non-monetary benefits.

Non-monetary benefits can be initiated at any time of the year and not only when monetary benefits are to be released. Try to negotiate deals with the management such as bonuses (quarterly, half-yearly, annually), variable pay related to performance. Additionally, arrange for team lunches and family get-togethers along with the aforementioned 10 benefits.

Remember, non-monetary benefits do not imply that the management does not have to spend any money; it involves money, but it is applied collectively rather than individually to each employee.

I hope I have added value to your initiative. I had faced a similar situation at the beginning of my career in HR. I was not aware of any forum that could help me then, so I had to work directly with the management at that time.

Can you please mention a few additional inputs? As other members pointed out, when the picture is incomplete, any suggestions given are bound to be wrong or inaccurate. However, I tend to agree with Raj Kumar's views.

1. Which sector is your company in?
2. What is the employee strength?
3. Are all employees located in a single location or multiple locations?
4. How many of the employees know that the sales are slow/low?
5. Has any attempt been made so far to convey to the employees that the sales are low, formally or informally?
6. When the management decided to convey the increments issue to the HODs, do they also intend to give details of the PoAs to increase the sales?

Regards,
TS

Hi, a lot of views have been received on the topic. I will just add a few points:

- Sharing the fact that there will be no increments for employees will be disappointing for almost all employees. Hence, I don't think "the other initiatives" can do a lot to reduce the disappointment. However, in bad times, such scenarios can happen, and employees are expected to support the company. Implementing "the other initiatives" also requires expenditure, hence a decision needs to be taken whether to invest money here or give employees a minimal increase.

- After addressing HODs, also address the employees in groups/one-to-one to explain to them the market reality and seek support.

- If you have a robust PMS, you may look at paying Top Performers only.

- Identify the top talent and try to keep them with you during the tough time by regular communication, giving challenging projects, etc.

Keep a list of “the other initiatives” ready (a lot of suggestions have been received) and do update post the meeting as to how you handled this situation.

Thanks!