Comments on: A Lousy Raise https://www.evilhrlady.org/2008/05/lousy-raise.html Everything to make HR better Fri, 11 Nov 2011 15:58:32 +0000 hourly 1 https://wordpress.org/?v=7.1.4 By: Tanya https://www.evilhrlady.org/2008/05/lousy-raise.html#comment-2247 Wed, 11 Jun 2008 14:26:00 +0000 http://localhost/wordpress/2008/05/a-lousy-raise.html#comment-2247 This may be a little late, but we were offered bonus vacation days and extra non-financial perks (more flexible schedule, etc) when my organization didn’t have money to give us even cost of living increases… and all of us stayed, and were appreciative that they were making an effort. I’m pretty sure productivity increased, too, with such good motivators.

]]> By: Anonymous https://www.evilhrlady.org/2008/05/lousy-raise.html#comment-2246 Mon, 05 May 2008 15:39:00 +0000 http://localhost/wordpress/2008/05/a-lousy-raise.html#comment-2246 I agree with the statement that one should share profits during the good times. I’ve worked for many corporations where there have been no to minimal raises during the lean years, and standard raises during the most profitable years. During some of the most profitable years, we received bonuses (that were tied to company performance). So, you might consider implementing a bonus program and just keeping standard raise amounts most of the time.

]]> By: Dataceptionist https://www.evilhrlady.org/2008/05/lousy-raise.html#comment-2245 Mon, 05 May 2008 00:01:00 +0000 http://localhost/wordpress/2008/05/a-lousy-raise.html#comment-2245 Being on the receiving end of this type of raise, personally for me the stock/share thing only works if you’re in the for the long haul. If your employees are already demoralised and considering leaving, offering them stock instead of money will be the nail in the coffin IMHO.
Not an enviable position, best of luck.

]]> By: Anonymous https://www.evilhrlady.org/2008/05/lousy-raise.html#comment-2244 Sun, 04 May 2008 16:38:00 +0000 http://localhost/wordpress/2008/05/a-lousy-raise.html#comment-2244 Like she said:

If you want folks to absorb your losses in the slow times, you have to share your profits in the good times.

Otherwise you’re simply going to look greedy, and everyone will quit.

If a manager says “hey, i don’t want to share future (high) profits; that’s not your benefit!” then as an employee I would ask “why, then are your current (low) profits my problem?”

]]> By: Anonymous https://www.evilhrlady.org/2008/05/lousy-raise.html#comment-2243 Sat, 03 May 2008 07:51:00 +0000 http://localhost/wordpress/2008/05/a-lousy-raise.html#comment-2243 My advice would be to make sure the company is sending consistent messages. What do I mean by that? Well, try telling staff that the salary increase budget this year is in the region of 1.5% of payroll, and you are going to prioritise this to individuals who are either well under the market, and to individuals who have received outstanding performance appraisals (this means you are remaining true to your formula and preserve at least some integrity in the performance appraisal system), Oh, and by the way, management will be forgoing any increases this year in order to leave more in the pot for those who make it happen. You have all read the news, and you know it’s going to be a tough year, so let’s do our best with what we have. Perhaps keep a little over for a hardship fund – a small organisation of 40 people can feel a bit like a large family, and now may be the time for the family to pull together.

No, it won’t be popular (especially not with the managers), but at least you retain your professional integrity and some hope of keeping people. The alternative is to complain about low budgets, cutting back and tightening our belts, only to see CEO/owner/senior manager driving around in a new car or going on an expensive holiday. That is not a consistent message.

I can – and have – lived with little or no increase in lean years, but we all got through it. Good luck.

]]> By: Amit Avasthi https://www.evilhrlady.org/2008/05/lousy-raise.html#comment-2242 Sat, 03 May 2008 03:26:00 +0000 http://localhost/wordpress/2008/05/a-lousy-raise.html#comment-2242 This is the first time I read your blog and I must say your observations are fantastic. However as per me there is another problem with small orgn. How can they afford to set up a HR orgn which can cater to managing employee engagement on one hand and taking care of day to day HR activities on the other. Do they have the scale to invest so much on HR ? Do they outsource, if yes how does CEO see value ? These are some questions which are tough..not sure if you have answers.

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