Expecting a raise this appraisal season? It’s a known fact that most companies due to the current economic situation may not be promising a pay-hike, thus dampening the spirits of those who were eagerly looking forward to it, especially the truly deserving ones. However, organizations, in an endeavor to cut costs and raise employee morale, are resorting to alternative effective measures to keep their employees engaged.
Several employees, given the current circumstances, have given up on the idea of receiving increments, post their appraisals. And many are even advising one another that expecting one is an unreasonable thought. But there are a few experts who suggest otherwise. It can’t be generalized as employees are at different levels of compensation, productivity and performance. Even during a phase such as this when the cost management challenge is at its peak, it is fair to expect increments based on the relative position of the individual vis-à-vis the organization and the market. But when several organizations, in a quest to curb costs are laying off people on one hand, does it make sense to hand over increment letters to some?
Employees should understand the organization’s dilemma in managing cost, competitiveness and possible, even survival. Honest communication of business realities and ensuring employees see the larger picture will help allay anxiety. Building a collective ownership and a shared destiny can be very reassuring. Therefore the million dollar question is how employees who go through an array of emotions during such times deal with the situation so that their productivity is not hampered despite lack of pay hikes? HR gives a few pointers: (1) employees need to keep themselves abreast of the market conditions in all sectors to understand if their skills can be utilized to achieve better results in other sectors within the same company. For example, somebody in a specific team in a company can utilize his/her skills in another group company because he/she has relevant domain skills in that group company and (2) employees need to look at the long term approach where they need to work hard in their current companies to retain their positions so that they don’t spoil their resume by jumping jobs due to a perceived insecurity as the recession will get over. Atos Origin India, HR Head does a thorough analysis of how lack of increments can have adverse effects on different genres of employees. He explains here under: Based on my experience “I have found that a majority of the employees continue to work at the same levels of productivity despite not receiving increments”. This group can be roughly broken into three categories: (1) this is a smaller group of self motivated individuals. They look at work as a self actualization and their constant endeavor is to constantly improve themselves, (2) the other larger group is the one who are pragmatic and realize the prevailing business environment. To this group, he would still like to emphasize that their good work would be rewarded in the future increment cycles and (3) then, there is the significant minority whose productivity is impacted due to not receiving the increments.
In the wake of the current economic environment one of the many companies’ main concepts is employee motivation. And they are ensuring just that in their own unique ways.
It is said that in the corporate world, there is a wide gap between the candidates from prominent business schools and other candidates, in terms of recruitment and the compensation offered. But has the current economic situation brought in any change in this? Has the slowdown brought in equilibrium in the pay packages of the high profile B-school pass outs and other candidates?
Recession has hit all segments and the demand supply equilibrium defines the compensation / pay packets to a great extent. The compensation packages may normalize across board due to this recession.