1. How Do We Retain People Despite Being Unable to Raise Pay?
In situation where we are caught between staying within lower budgets and rewarding
employees to maintain morale and motivation, there are ways you can communicate this
without sending the wrong message and creating turmoil among your staff. The question
is ‘how do we communicate this news so that we don't see a spike in turnover? Managers
of every business units should be able to explain honestly the reasons, and couple your
candor with long-range plans to help people recoup rewards in the future.
1. Managers should be open and honest about the current economic condition and
explain to your employees why pay increases are not being offered. If this real reason is
hidden, employee may begin to assume another rationale was used to make the decision
and feel personal blame or resentment.
2. Managers should place extra focus on praising each individual for their positive efforts
and responsibilities they handled successfully. For those who have areas where
improvement is needed, a detailed development plan is provided and coordinated. This
will position the company as one that values personal and professional development and
willing to provide the time and resources to help each individual boost their performance.
3. Managers should focus on the company's future plans for rewarding their efforts.
Additional salary increase is based on performance Not only will you postpone the
expense of additional salary increase but also motivate employees to work toward that
goal. This creates a true win-win situation.
4. Managers should identify their top performers or those employees who are most
important to the company's future success. This promising approach could give an
implications that the company focuses on higher rewards for high performing
individuals. To employees, they will not be the most disappointed about the news of no
pay increases but they feel the need to be most concerned about their morale and
continued commitment to the company.
On the side, negative feelings and signs of disappointments of employees cannot be
avoided, the company, through its managers, can take specific action to communicate
a positive message relative to keeping an optimistic attitude and position. If and when
the managers are giving their employees the feeling that they are unsure about the future
of the company, an increase of employee turnover follows.
Bottom line, the critical point is the keeping the manager’s role and responsibility of
protecting the interests of the company in think and thin,
-Mike Elumbaring