We are a small company, and have an employee working with us for about 11 years now. She joined at a salary of about Rs 4500 and now she’s drawing a salary of about Rs 27,500 + PF. We are a small organization. We have always given her maximum raise of about 20% as per our company policy and on many occasions even more this. She’s an honest and dedicated employee, though not a star performer as far as technically her work is concerned. But she performs her duties well, and has high integrity. I wanted to ask you that since she has always been given maximum increment of about 20% on her gross. She might expect the same increment this time also which will be an amount of Rs 5500.
But then there is a limit to how much increment our company can always give. When her salary was low we always kept her giving increment between Rs 3500-5000 Rs. I mean if we give the same increment this time also then her salary would reach around Rs 33,000 but we can give an increment of about Rs 4,000 which is not bad, and will make her salary Rs 31,500. So my question is that what rationale can be given to her for not giving 20% but may be 18% increment because this is what the company can afford right now. Moreover, she is someone who will be permanent, or will remain for a long time with the company. If we keep giving her 20% increment always, then at a point we may not be able to afford that amount of salary as our company is small with a lesser turnover.
What do you think should be done in this scenario? As the amount of salary increases, does the increment percentage also remain the same?
Please give your suggestions as soon as possible. Thanks.
From India, Faridabad
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8But then there is a limit to how much increment our company can always give. When her salary was low we always kept her giving increment between Rs 3500-5000 Rs. I mean if we give the same increment this time also then her salary would reach around Rs 33,000 but we can give an increment of about Rs 4,000 which is not bad, and will make her salary Rs 31,500. So my question is that what rationale can be given to her for not giving 20% but may be 18% increment because this is what the company can afford right now. Moreover, she is someone who will be permanent, or will remain for a long time with the company. If we keep giving her 20% increment always, then at a point we may not be able to afford that amount of salary as our company is small with a lesser turnover.
What do you think should be done in this scenario? As the amount of salary increases, does the increment percentage also remain the same?
Please give your suggestions as soon as possible. Thanks.
From India, Faridabad
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If you have given an increment of nearly 20% every year, that doesn't mean that this time also you need to give 20%. It can be higher or lower as the management decides. There is nothing to be feared to reply why you have given less increment. Just say to her that in the present scenario, you should be happy that at least your salary is protected, and it's a management decision.
Corrected text with proper paragraph formatting:
If you have given an increment of nearly 20% every year, that doesn't mean that this time also you need to give 20%. It can be higher or lower as the management decides. There is nothing to be feared to reply why you have given less increment. Just say to her that in the present scenario, you should be happy that at least your salary is protected, and it's a management decision.
From India, Delhi
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Corrected text with proper paragraph formatting:
If you have given an increment of nearly 20% every year, that doesn't mean that this time also you need to give 20%. It can be higher or lower as the management decides. There is nothing to be feared to reply why you have given less increment. Just say to her that in the present scenario, you should be happy that at least your salary is protected, and it's a management decision.
From India, Delhi
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If management decides to give 18%, then tell her clearly that management had approved only 18%. Also, inform her that even during the recession, you received an increment, but most companies have stopped increments. The company is protecting you by maintaining your existing salary.
For your information, most companies this year have divided the existing salary into two parts - 80% fixed and 20% performance-based salary for cost-cutting measures and to save the company.
Regards,
Ravi
From India, Hyderabad
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For your information, most companies this year have divided the existing salary into two parts - 80% fixed and 20% performance-based salary for cost-cutting measures and to save the company.
Regards,
Ravi
From India, Hyderabad
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