How to Write a Salary Hike Letter for a Non-Performer While Sending a Warning Message

Hi,

Can someone help me to draft a letter to an employee who is a non-performer but the company is still giving him a salary hike? In this way, the company wants to gain his confidence and somehow motivate the employee. Please confirm if there is any letter we can write to the employee (Note: a salary revision letter with a warning). Can someone share any draft for review?

It's urgent!!

Regards,
Birju

Has anyone tried to analyze why he is a non-performer? I am sure the company has assessed the impact on performers when a non-performer is being given a hike similar to them.

Drafting a Letter for a Non-Performer

A letter can be given like the normal letter provided during annual pay hikes, but add the sentence that this year your performance has been rated as below par and you need to improve upon work performance. The company retains confidence in you and expects that your performance will show acceptable improvement.

Though you have asked for the format of the letter to an underperformer, I am against the very idea of placing a good performer and a poor performer on equal footing. You wanted to maintain the motivation level of the poor performer by giving a salary increase, but what if good performers feel let down and get demotivated? If you give a salary hike to an underperformer, it will send a signal to one and all that performance is not valued in your company. What will be the implication on the organization's culture then? Are you running a commercial organization or a government organization?

As Mr. Nathrao has suggested, study the causes of poor performance of the employee in question, train him, let his manager spend time coaching job-related skills, but a salary hike should be the least or it may be zero!

Thanks,
Dinesh Divekar

Re: Annual Increment

The above matter is referenced regarding your work performance. After a thorough review by the company, it has been determined that your performance is below the company's expectations, and there is room for improvement.

While you are not eligible for this year's increment, the Management has decided to provide you with an opportunity to enhance your performance.

We hope that with this increment, you will be able to enhance your performance further. However, if there is no improvement noted, you may not be considered for any future increments. You are encouraged to reach out to your department head for additional coaching or training if needed.

Regards

Thank you so much to all of you for your valuable input. @ Mr. Nathrao, as you said, we have already assessed the employee many times and have given him many other challenges and opportunities by shifting him to other departments based on his skills. It seems like his interest level is very low. We have had enough communication and discussions with him, but he remains the same. Ours is a service industry and a small organization. He has been with us from the beginning of the company. For a long time, we have not reviewed him based on his performance, which was communicated to him by letters. This time, management has decided to give him a final warning with a review, which may provide him with some sort of motivation. We hope we are doing the right thing. We do assess the impact on other employees before making decisions.

Performance Issue

Mr. Abc,

It has been observed that you have not delivered your best efforts as mutually agreed upon the specified targets given to you to develop the Payroll Service so far. This has resulted in disobedience, poor performance, and gross negligence of duties in your capacity as Payroll Associate.

Please note that poor performance of work is a complete loss to the company’s business, for which you are making yourself liable for necessary action. Failure to adhere to the conditions of this warning, development of new or related problems, and/or continued unsatisfactory performance will lead to more serious corrective action, up to and including discharge.

You are further advised to improve your work efficiency and submit a written explanation within 7 days regarding your poor performance as soon as you receive this letter.

With a hope of improvement, management has decided to review your CTC from Rs.xxxxxxx to xxxxx, effective from July 1st, 2015. Other terms and conditions of your employment remain the same.

We trust that you will take this opportunity to sustain and improve your effectiveness and contribute constructively to the development of the organization. You are requested to return a signed copy of this letter to us as an acknowledgment for our records. Please get in touch with your Reporting Manager or HR for any clarification on your compensation.

Kindly treat this as very urgent. We look forward to a mutually prosperous association and bright future.

With Best Wishes,

"We have given him many other challenges and opportunities by shifting him to other departments based on his skills. It seems like his interest level is very low. Do you think giving him an increment will improve his performance? Why the hesitation in giving him a warning letter to improve performance or face action? The letter you have drafted seems to condone his past failures and give him an undeserved pay hike. By taking this action, the company will place itself in a position where, if he does not improve even after receiving an increment, the company will not be able to immediately take action against him.

In any court of law, your decision to give him an increment will appear as condonation of poor performance and a reward for gross inefficiency. The letter you propose to issue, even after modification or correction, cannot hide the fundamental incongruity and inconsistency in actions."

I do agree with your point here, but in this letter, I have clearly mentioned the following points: if he fails to perform, the company can take any necessary action.

1. "Please note, poor performance of work is a complete loss of the company’s business, which you are making yourself liable for necessary action."
2. "Failure to adhere to the conditions of this warning, development of new or related problems, and/or continued unsatisfactory performance will lead to more serious corrective action up to and including discharge."

Prior to this, we have decided to advise his manager to give him a timeline to set his target. Hence, failing to perform, we may have to take some corrective action. I will try to modify the letter once again and share it here. Thanks for your valuable feedback.