Concern: Recently we have hiked the salary of one of our employee after reviewing her overall performance. However, she is not happy with it. She is been expecting more. Every day she reminds to negotiate an increase in her salary. Please help on how to handle this situation.
The case facts:
- The compensation planning allocated hikes to each grade and rank, attenuated by the performance standards.
- The employee is presented with the hike , which do not match the expectations.
- Ordeal of negotiations for another hike lengthens decision making.
Logical thinking coupled with practical situations brings in the solution. Three dimensions that attributes to strategy are as discussed below:
- Goal Setting: The objective may be defined, as being the market leader by the next financial year. This is calculated in terms of business target. Mostly it’s an increase in the market share through either takeovers or increase in the production. This configures the goal setting for each function. HR functions for such a growing firm would strategise to designate responsibilities, to facilitate the expansion.
- Budget Allocation: The sum total of the spending is divided into investment in terms of benefits and other operational expenses. Compensation is identified as the value returns on the services received from the talents. This is chiefly governed by the business requirement such as higher spending on research, leading to planning for larger markets share, amid higher supply chain. The HR budge would impact with an alignment to the market is weighed to offer a competitive compensation.
- Leadership alignment: The backbone of the success to planning lies in the hands that delivers it. The leadership team designated to set the strategy and prepare budget are accountable for the business units. The talent planning may be chaired by a CHRO , however the insinuations are contributed by the business leaders. Communication overarching the environment balances the transparency, strengthening trust.
Judging a situation with logical findings would require a non-attached discernment. In our member’s case, different implications from three dimensions as discussed had lead to the dissonance. The disbursement of the hike matched the top-down judgement, but missed on the discernment.
- Individual perception of performance and result: A contribution by an employee is valued. It results with rewards when they were aligned to the organizational goals. Dashboards and performance scorecards actualise with grades for each contribution, to ensure the alignment. However, the gap of expectations widen when the employee in question weighs every contribution for a material reward. A pat on the back received for managing an expert escalation would culminate to incentive, if that escalation results with client retention and revenue returns. The excellence of the employee would be best utilized by an higher level responsibility, when appropriate.
- Communication: The guidance to an employee reverberates intently, with the shared views and thoughts from it leader with appropriate feedback. Transparency calls for its price. It pushes the leadership to share the confidential often sensitive information. This rings the choice to jump the boat or follow the captain.
Pen-ultimately, the priorities of choosing and aligning will glue the individual to the entity. Solution to the decision maker remains in acknowledging the human concerns with judicial treatment through strategies and communication. Employee championship is intertwined with business partnering through change management and administrative expertise.
Suggested further reading: A similar case discussed on post appraisal scenerio [Tug of re’WAR’ds]
This article have been published on Buniess manager , October issue. This issue covers different areas of Strategic Managment. This article is listed under the experts view as shared in the link Business Manager – Current Issue