Salary Increases being decreased
slewis
57 Posts
Yesterday, the COO was discussing with the Directors some changes in the way we give pay increases. To give you some history, almost everyone here receives at least 5% every year, alot of times more, whether they do a great job or an average job. That is a problem with our managers, I know, but the fact still remains. Our average salary increase last year was 7.25%. This year they want to put the cap on the salary increases to be 3%. I would really like some opinions and ideas on how to approach this with the employees because of what they are use to, I believe, it is going to be received as very negative and individual performance based. I am also thinking we need to look at our Performance Appraisals because we are still using a rating scale and if someone scores a 3 they should get a 3% increase but that is not being followed because they don't want to lose people. Also, a problem with management, but they have been allowed to do this for so long I am concerned with the ramifications with this change. Does anyone have any advice to offer and/or a performance appraisal form you could send me to help me restructure ours?
I appreciate any input. Thank you.
[email]slewis@pmds.com[/email]
I appreciate any input. Thank you.
[email]slewis@pmds.com[/email]
Comments
James Sokolowski
HRhero.com
Because of huge rate increases in insurance, employees also had to start cost sharing insurance. Before, all employees had their insurance totally company paid.
We are still above market in our salaries, but our employees don't have to work nights or weekends as they do in the hospital. This makes our facility attractive to people who "want a life" instead of working 12 hours a day to make the big bucks.
It can be done...you have to educate your employees as to WHY it is necessary and it is unrealistic, given today's economy to continue to give superinflated raises.
Good luck. This is never pleasant.
#1 thing a consultant shouldn't say: "I could tell you the answer right now, but we're committed to a three month project..." #-o
Thanks again!
For example, do you give the same percentage increase to the emplyee who does as good as a job as the eprson doing the same job but with more experience and training? Or do you boost up the less experienced employee because he or she is in fact matching the experienced employee in performance and quality of work?
Plan out the change and make sure everyone knows how it is going to work, what will be consdered and not considered, and how an employee is going to be able to get fair consideration beyond the personalities of the raters involved. If an emplyee believes that he should get a 4% increase rather than a 2% increase will he be able to make an effective pitch to the right decision maker or will he just be told -- "sorry, you can't challenge it!"
If you go this route start it next year. And have an executive committee review the ratings and set the increases for each employee.
Someone needs to be able to waive/overide in those few situations.