Anonymous
3

I am working as HR in an IT company in Gujarat which has 7 developers. The Directors say that we do not want to give increments to them and just Bonus in place of that . Is that possible legally ? How do i retain employees if this is imposed and new hiring will be a big problem. Kindly guide.
From India, Pune
nathrao
3131

The company will not be an attractive place to work.
Attrition rates will be higher than normal and employees may not be engaged as needed for company to do well.
While I am unaware of any legal provision that mandates increments on yearly basis,but the fact that their financial plan does not include planned increments will be a big negative factor.
Giving Bonus is poor consolation.
That too amount of bonus can vary from time to time.
It will not be in hands of HR to do anything to retain employees.
Your own position may be shaky in case firm runs into tough financial conditions.

From India, Pune
gopinath varahamurthi
175

Dear Anonymous,
There is a lot of change which are inevitable...
Retaining an employee is the first and the foremost priority of any organisation, when an organisation fails to retain its human resources then the organisation never fulfil the dream of achieving its existence.......
Bonus is the extra ordinary motivation to an employee for his/her achievement during the working/serving period, where as an increment is the tonic blood given to boost the morale of an individual employee with the hope that his/her salary is being revised/enhanced every year at par with the raising monetary inflation of the market... the raise/enhancement may vary industry to industry, that the decision of the board squarely rest with inefficient performance/administration .... rest follows without dignity...
best of luck ........

From India, Arcot
Anonymous
3

Thank you so much for your guidance . The Management says they are OK with employees resigning. I am clueless how will I hire new employees if this system is imposed. Thanks again.
From India, Pune
nathrao
3131

Anonymous, I understand your problem.When recruitment fails or s unsuccessful,they will blame HR straightaway. Look around for greener pastures.
From India, Pune
sushilkluthra@gmail.com
221

The management seems to be unaware of industrial relations concepts which include necessity of increase in wages, increments, dearness allowances as recognised by the Apex Court in Hindustan Times ltd case and Hindustan Lever ltd case of 1994 and subsequent cases. Since the developers may be covered as workman, any developer or workman of the company may raise his industrial dispute for proper fixation of wages and then the managent will have to change its attitude. Fair wages cannot be denied to any employee. Let the HR give slowly and slowly discourse to person in deep slumber. Otherwise he will become victim of these types of persons when attrition will be very high.
Thanks
Sushil

From India, New Delhi
umalme
11

Attrition stopping;
there is one method if your management is agree to increase salary but increment amount to give after six months if employee stays with organization. this method is very effective to give increament as well stop attrition. offcourse your organization should be able to support the increament after six month to pay the sum.

From India, Delhi
gopinath varahamurthi
175

Dear Friend,
Now, it is clear that they the organisation did not go for salary enhancement, let it as is...
you convince the management to merge a portion of the bonus with the salary, and find your self as increment ( by dividing equally) provided bonus should be high if it is meagre you may certainly face the situation awkward.. in the absence of bonus ratio it is certainly difficult to say ...
Any how you have to find out a way out ... otherwise, you are not going to face the drum, the organisation is..because, you are also a part of employee...you may like to take a decision as you wish in your way ........

From India, Arcot
Anonymous
3

Dear Umalme,
The question is not for attrition problem, Making the employees digest that they will get Bonus once in a year in place of increment is going to create a lot of problems in the company.
The management is not opening eyes to the repercussions of their proposal .
After going through the Bonus Act , now I feel the amount can be a big issue as financial crunch in the company is the cause of all these bizarre ideas.

From India, Pune
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