How Can HR Bridge the Gap in Increment Expectations in Booming IT Markets?

Increment Dissatisfaction in IT Companies

I hope to get some help with the global serious issue of increment dissatisfaction. I work as an HR Manager in an IT company, and my employees are never satisfied with their increments. We always receive verbal communication stating that they are expecting at least an x% hike, and if not, they will leave the organization. Due to the booming market for experienced software engineers, management always has to give in.

Challenges in Aligning Employer and Employee Expectations

How can we overcome this situation when employers and employees are never on the same page? We also aim to provide a satisfactory amount of increment. Could you please suggest the rate of increment if the average salary of 15 employees is $100k per month?

Dear Mansi,

Unlimited Wants and Employee Retention

Gautam Buddha, the great philosopher, already made known to the entire world that unlimited wants are the root cause of all the troubles we face in the world, then and now. How can one predict or assess how much the other person wants as an increment? It's unlimited. Except by negotiating one-on-one or by taking them into confidence and asking them straight away how much of an increase they want, you will not know. But still, no one can guarantee that they would stay or leave.

Take, for example, Mr. Mukesh Ambani, one of the richest people in the world, but he has not stopped doing business, borrowing, or investing in new ventures like JIO. In such a scenario, how can we set a higher limit for your Software Engineers (SWEs)? Men may come, men may go, but the company should go on. Create an environment where no one is indispensable. Always try to keep a few bench stocks to fill the gaps so that the company does not suffer.

Compensating and Retaining Employees

However, at the same time, it would be a point of pride for any employer to retain experienced employees. The company should not hesitate to compensate them to acknowledge their loyalty in one way or another. Some companies issue complementary shares, monetary gifts, foreign trips, gift cars, or plots/flats, etc. If the company is financially sound, you should not hesitate to share a portion to keep them satisfied. Do not risk losing business to your competitors.

What if this experienced group quits and starts their own ventures, capturing a significant portion of your customers? Your business would suffer greatly, compelling you to rebuild, learning the lesson the hard way. Please weigh these options and decide judiciously.

Thank you.