Dear Muruli,
Annual Salary Increments: An Employee's Perspective
Annual salary increments are close to the hearts of employees. We wait patiently for the golden news of the increase, as our spending plans are based on the anticipated raise. Nevertheless, as long as the employer pays above the minimum wages as notified by the respective state government, employers are not under any obligation to provide a salary hike every year.
Employee Relations vs. Legal Obligations
In view of this, it is more an employee relations issue than a legal one. Withholding increments is one means of cost-cutting; however, employers often fail to measure the cost of such actions. Annual increments have become such perfected norms that they are now unwritten rules. Therefore, employers should consider the impact on employee motivation. Timely communication would have helped control the frustration that you and your colleagues are experiencing. Adding to this is the ill-mannered behavior of HR (as perceived by you), which has exacerbated the situation.
Leadership and Trust During Rough Times
When a company faces rough weather in business, maintaining trust with employees is of utmost importance. Your employers have failed in this leadership quality. Putting the salary increment on hold is not new; it has happened elsewhere. However, the brand image of the company or the leadership at the top was so strong that generally, employees did not question the management's actions or decisions. Leadership lies in treating employees as assets, not merely as instruments for promoting one's business.
Communication from Management
The non-communication from the MD speaks volumes. It reflects how much he values his human resources.
Options to Consider
Now, you have a couple of options to consider. One is to wait patiently, regardless of how long it takes for the next salary increase. If you do this, in the future, when better days return, you could be rewarded for your patience. The MD may overlook any normal misconduct and value you for not deserting the company during tough times.
The second option is to request a formal meeting with the MD to understand the facts. You may request the meeting individually or collectively. However, this option comes with the risk that the MD may perceive your application as disturbing the organization's calmness.
The third option is to start looking for a change. Which option to follow is your choice.
Thanks,
Dinesh Divekar