How to Handle Salary Hike Demands After Probation Without Affecting Performance?

Addressing Salary Negotiations Post-Probation

Hello Seniors, 6 months ago, I joined an IT company as an HR professional. For new joiners, we have a rule that they will be on probation for 3 months, and after that, they have to sign a contract for 1 year. Salary increments will be early.

At the time of joining, employees agreed to a given salary for one year. However, at the time of signing the contract after completing the 3-month probation, they are asking for a higher salary hike. This is happening with every 2nd or 3rd employee. Due to this, my performance and hard work are being affected.

Please help me out. What can I do? What policies can we implement?

Thank you.

I am conducting the HR Round and confirming that the salary offered to you will be x amount, with a salary revision scheduled after one year. The candidate has confirmed the same and signed the offer letter. However, during the contract signing, they have raised concerns, stating that the offered amount may not be sufficient for the entire year. I am now unsure if it will be adequate. Please advise on how to handle this situation.

Thank you.

Thank you for your response and suggestion. We are implementing this policy for new employees going forward. For current employees, the increment period is one year from the date of joining, and I communicate this during the final interview.

For example, in January, we hired a fresher at a salary of 8k and informed them that their salary revision would be in the following January. They agreed and joined. However, after three months, the employee now claims that with three months of experience, 8k for the next nine months is inadequate, and they expect around 11-12k.

I am encountering this situation with 3-4 employees and I am unsure how to proceed. According to company policy, I cannot increase salaries, and my boss is unwilling to approve any raises.

I would appreciate any suggestions on how to retain these employees.

Thank you.

Offer Letters and Probation Terms

You must provide at least one offer letter clearly stating the terms of probation and the period of confirmation at the time of joining or earlier.

In such a letter, if an employee is absent, they may demand clarification. However, they are in probation. Let them leave the job if they demand terms contrary to those expressed by you at the time of joining.

Hi, you can also inform the employees that anyone not adhering to the commitment outlined in the Offer Letter may not receive their relieving letter. Additionally, if they join another company with this experience, you may not provide assistance for background verification.

Regards.

Further to what Mrugen Vyas suggested, there are three possibilities in the situation you mentioned:

1. Maybe the starting salary is low compared to the general trend in your city?
2. The change in attitude seems to be coming after the employees join. Are they being tutored or influenced (that they can get better salaries) by someone internal, like an already well-established employee, in the first three months?
3. There seems to be some sort of communication gap between you and the employees during the interview process. I am not considering the verification part here. Do you have a practice of retaining or taking any originals?

What is the response of such employees when you remind them that they agreed to the terms at the time of the offer? Does anyone claim they don't remember this point was informed to them at all or make any such statements?

Frankly, I am not really sure how verification would help you resolve this problem. It would, at best, ensure that the employees will have a tough time in their next opportunity. I suggest focusing on your problem rather than on issues that are not in your control.

All the best.

Regards,
TS