Want to give a salary hike? Think again
Salary hike
is something which is risky, and has bigger impact on business. In any
organization there are basically 3 types of employees and to meet individual's
expectation it's important to know what the best managed way is. The best
method to give a hike is to measure their motivation than productivity and
tasks completed.
a) Money
motivated employees - Few employees measure their work on monetary value. If
someone offers a small better pay, they will make their way to exit. The more
they work, more they wish to be paid. Simple way to handle these guys is
measuring their accomplishments in terms of "money added to profit"
and with respect to that hike should be made. For manager level employees there
must be incentives based on productivity. For core employees on lower level
should be used as motivation - giving them a plan. For example giving them a
variable pay directly proportional to the profit made by organization.
b) Work
motivated employees- Well; they are in organization because they love their work.
As soon as they love it, money is not important for them. Best method can be
direct question – “what’s their need.” Remember they never ask some thing over
limit, they know what their limit is, so without any negotiation give them what
they want.
c) Routine
employees- They are just there, so keep them there. Measure their value in team
and then negotiate, negotiate, negotiate... Anyways if they leave, there will
not be a big impact so risk can be taken on this.