You are hiring new employees as your business grow and expanding, but the salary for new employees is higher than your current staff’ salaries! What you should do?
Usually this happens when:
The organization did not hire new employees for a long time; over 2 years.
The organization does not have Annual Increments policy.
The organization does not have a proper Compensation and Benefits System in place or has an outdated one.
The organization is not considering the Annual Inflation Rate and Cost of Living in the countries where it has operations in.
Organizations in this situation must act fast, in order to be able to recruit new employees with new knowledge, skills, and abilities to fulfil the organization’ goals and achieve their targets.
Acting fast will help the organization to retain the current talented employees, and keep the desired morale and motivation among staff.
To do so, the organization must:
Establish/Update a Compensation and Benefits System, and define the pay range for each grade or jobs group based on market salary guide and survey.
Determine a pay strategy (e.g., lead the market for critical jobs, and match the market for other jobs).
Develop an Annual Increment policy, either Entitlement- oriented or Contribution- oriented, another option is to have a mix of these two approaches.
Create new grades to the grading system to allow promoting long-term employees who have not been promoted for a long time and increase their salaries to at least match the market rate, moreover, these new grades will ease the hiring of new employees.
Prepare a Salary Adjustment plan and budget for the current staff to match the market rate, such adjustments are made on agreed stages with the employees based on the organization's financial health and individuals’ performance levels.
Comentarios