Like its predecessor, the year of 2017 promises only paltry salary hikes across board. That makes the job of team leaders and HR managers much tougher. Though fewer employees would jump ship due to bad jobs weather, they must ensure that employees remain motivated.
As per the latest report by Korn Ferry, the salaries in India (post-inflation) will grow by 4.8%, with a marginal increase from last year’s 4.7% hike. After the demonetization move, companies turned doubly cautious, weakening the prospects of good salaries. Experts say that if compensations are denied for long periods of time, employees react by slacking off. The state of ‘workers pretending to work as employers pretend to pay’ can lead to harmful chaos.
Larger roles and better responsibilities with attractive designations inspire employees to perform to the best of their abilities. “Attractive designations are welcome by all. They generate enthusiasm and energy in the organisation. However, they have limited utilitarian value, and attractive designations as a stand-alone factor cannot increase attractiveness of an employer brand and improve retention,” says Aditya Narayan Mishra, CEO, CIEL HR Services.
There are many other ways to invest in employees, apart from salary hikes .According to Amogh Deshmukh, Head of Sales at DDI India, an HR consulting firm, “Companies can provide employees with more meaningful and engaging jobs or roles that an employee might prefer to work in. There are other ways too like purposeful development wherein a set of high performing employees can be selected to train in functional, behavioural and leadership areas to aid their rise in an organization,” he says.
Smaller organizations satiate their employees much better than larger companies, as annual wage hikes do not bind them. “I can promise my employees with increases in variable pay as and when I can clinch a deal. To achieve this, I can add extra responsibilities necessary to drive a project’s success,” says the COO of an IT firm in Bangalore. Larger firms cannot tilt the delicate balance of workings across board, and are strictly bound by their HR regulations. Small organisations and start-ups also have the advantage of being transparent of their financial health to a mid to senior level employee, helping them gain empathy, which is yet another benefit that large companies do not.
HR experts also categorise employees as per their career stage, while managing salary expectations. “Employees look for a combination of factors? in their employers, the most important factors being: compensation and benefits, designation, role clarity, financial health, long term vision and leadership, job security and work culture. As levels vary and the socio-economic contexts change, the priorities become different,” Mishra informs.
A report by CIEL HR services says that 70% of junior level professionals provide high importance to salaries as an important driver to change jobs. Mid-level professionals, are keener on designation too. Senior level professionals seek job security and work culture along with salaries, and give low importance to designations.
Experts say that providing high salaries only was never the answer to ensure employees are retained, in a healthy manner. “A combination of workplace environment, work-life balance and a path to career progression was always key, now more so as environment is tougher,” says Deshmukh.
A CIEL report says that 70% of junior level professionals provide high importance to salaries as an important driver to change jobs. Mid-level professionals, are keener on designation. Senior level professionals seek job security and work culture along with salaries, and give low importance to designations