Frustrated w/salaries

Elle

Hello everyone, I need to vent. I am extremely frustrated b/c we just did our annual appraisals and am in the process of doing increases. Generally, people here receive a 3% raise every year across the board (just to keep them happy)but this year we decided to base it on performance (merit increases) becuase there are a good amount of ee that over paid for their position and what their job entails, also, we aren't doing that well financially. I have only been here for a year and my boss randomly decided who would get what percentage incrase. The cap is 3% and that is what we budgeted for and the ees know that but some are receiving less than 3% and I'm worried about morale. The managers are upset b/c they have to communicate these increases to their ees. So I have one manager that isn't receiving an increase b/c of his poor attentance and performance and I have to tell him that his department is only going to recieve 1.5% increase.

I feel as if there is going to be such bad tension among the ees and myself even though I did not decide on these numbers. I have communicated the procedures of increases to everyone but I don't think it matters.

EE's that are over paid don't care, they just want their increase. Then there is me who is completely under paid for my job.

My boss feels that some ee did not earn increases therefore they shall receive none. Managers are uspet and I would like to set up a 90-day goal plan. If they reach the goals and make improvments then they may recieve the difference on their raise.

I am not sure if anyone has had to deal w/this in the past but any input would be great. Sorry this so long.

Rockie

Oh yeah...been there....done that.

When I first came to this medical practice, everyone got at least a 5% raise because they felt they were entitled to it. They, also didn't care if they were overpaid or not (which our salaries were highly inflated at the time). Performance evaluations were a joke because everyone got 5's across the board. Didn't matter that most employees were working on an average of a 3 level. Nobody wanted to be a "3".

We gradually over the last few years have managed to cut it back...everyone was upset for a while when they didn't get their auto 5% raises.

When our Medicare reimbursements went south, raises got cut even more than before...but it came down to either we give minimal increases or "some of you guys will be terminated."

We have gone from 5% gradually to 1.5% last year because of expense levels and continued reimbursement cuts. We hope to give more in the coming year, but it all depends on the governmental reimbursement.

The bottom line is....if you have to cut back...go ahead and do it. People will grumble for a while, but they will get use to the fact that we're not all "fat and happy" any longer. We did not lose any employees because of the cut in the amount of raises...we are still paying above market, so that should tell you how far out of kilter our salaries really were!

Good luck. This is not an easy thing to do...it involves a whole change in philosophy that many employees find difficult to fathom in this "me first" society.

Whatever

my boss randomly
>decided who would get what percentage incrase.
>>
>My boss feels that some ee did not earn
>increases therefore they shall receive none.
>
I am reading that increases (or lack of them) are based on the "whim" of an individual instead of a proper performance evaluation. The gross percent of increase in salaries is the responsibility of the boss. If everyone gets the same percent increase, there should be no problem. But, if there are going to be different rates of increase, they should be based on a performance evaluation and not how the boss feels.

Elle

I agree and that is what I attempted to base them on this year, since I took the time to create a pay structure. He briefly acknowledged them and looked over the manager's recommendations and made his decision.

We are very small and it is very obvious who does and doesn't perform well, in all honesty, the evaluations didn't have to tell my boss or myself that, but I still would like to implement proper procedures.

Thanks for your post, I'm hoping it all goes over well.

AJ SPHR

One other note of caution, you stated:
"I feel as if there is going to be such bad tension among the ees and myself even though I did not decide on these numbers. I have communicated the procedures of increases to everyone but I don't think it matters."

One thing I believe you should be careful about is blaming upper management or someone else for decisions you are carrying out. While not directly related, I did experience a similar situation at a previous employer. HR Reps had to conduct employee meetings and had to tell them that they would no longer receive the Birthday Holiday (paid day off on their holiday), as well as some other changes.

One or two of the HR Reps made what I believe is a serious mistake in the presentation by responding to employee outcry with "hey, don't shoot me, I'm just the messenger!" In fact, I heard from employees in those meetings who thought that response was inappropriate.

Part of HR's job is to occasionally deliver or carry out a project or procedure that could have a perceived negative message for employees. We need to understand the business needs for the new way of doing things and be an effective communicator and message deliverer for the company - explain why the cut-backs are necessary, keep it business focused, and don't distance yourself from it.

Just my $.02 of additional things to keep in mind.

Elle

AJ SPHR: You are right, thank you for that very good point. I am trying my best to communicate things out properly, it is just hard when I have a boss that doesn't really acknowledge my work.

AJ SPHR

Elle, I worked for a couple of bosses over the years who never recognized me for my work or efforts. The way I survived is that I took comfort in hearing/receiving good feedback from my customers - employees and managers - about how effective and professional and responsive I was in support of their organization. I know that it does get old when the only positive feedback you hear is from outside HR or not from your boss, but that's what helped keep me going until I finally found an employer with a boss who actually values my contribution!

Good luck and hang in there!

Balloonman1

"So I have one manager that isn't receiving an increase b/c of his poor attentance and performance and I have to tell him that his department is only going to recieve 1.5% increase."
Shoot him straight, tell him you have poor attendance, and your performance is below expectations. The big debate was do we not give you an increase, or do we look to replace you with someone who we feel will meet at least the minimum requirements for the job. Either fix it or we will have to revisit the question of replacing you, so don't bitch about your lack of a raise.
My $0.02 worth,
DJ The Balloonman