Employees Worried About New Benefits: How Can I Address Their Concerns?

We have recently converted to a Pvt. Ltd. company. Previously, the employees were part of various group companies, and as the number of employees in each company was less than 20, no deductions were made for any employees. Now, all the employees are under the same company role.

Employee Concerns Regarding Benefits

My question is, even though the company has stated that the increment will only be in terms of facilities such as PF, ESIC, Gratuity, etc., with both payments to be made by the company, the employees are not satisfied with this arrangement.

How can I address their concerns?

Regards

Your question is not clear. Can you please explain your query further?

My Question to You:

1. Has the company decided to manage the PF/ESIC/Gratuity from the current CTC, or has the company decided to add these to the CTC and deduct the same? Also, please provide a brief overview of your company profile and work culture. This information will help us guide you in a better way.

As a good practice, if we initiate any new initiatives at the organizational level, we should never affect employees' current salaries. The company should bear the same. Alternatively, if management does not wish to take any action, then you should convene a group meeting and discuss with everyone by highlighting the positive aspects, such as medical security and future security.

Employee Benefits and CTC Clarification

The CTC is inclusive of the benefits. The net take-home of the employees has not been affected; the employee-employer payments for benefits will be borne by the company. This company is in logistics, and the employees here have been working for a long time. It's a very family-driven environment.

The employees are now saying that benefits are a right of the employee and they cannot be treated as an increment. So, please advise on how to pacify the employees (read as HOD's).

Regards,

Increment Cycle and Employee Communication

What is your increment cycle? Why was it communicated to employees that they are getting an increment? This is a management decision to merge all different companies under one name. I believe you should convey to employees that this is not an increment but rather the merger of several companies. As a family, we should support each other in this merger to create a larger company. While it is true that this is their right, it should be communicated carefully that we acknowledge it as their right, although it was not applicable previously. Now, employees will receive additional benefits in terms of PF/ESIC/Gratuity.

This is a very sensitive matter, and it should be handled in a friendly manner. Avoid referring to it as an increment when discussing it with employees. I also recommend introducing some employee-friendly policies. This will be beneficial.

I have recently taken over as the HR here, and the management had already informed the employees that there would be an increment. Now, only the disbursement is to be taken care of. I am now looking for a way to convince the employees.

Thanks for the suggestion.

Regards,
Ashutosh Thakre