2002 Increases Less Then Previous Years

Rockie

As part of being HR, I am charged to examine our compensation program. When I first came to this position, there really was no checks and balances in our medical practice. Because supervisors did not want to confront employees, most were given the top increase and top evaluations where most did not deserve the top. Most of our people fall into where 80% of employees fall - they come to work, do their job and while they do a good job, there is nothing exceptional about most of their performances that would put them at the top of the increases. Another problem that had occurred is that a lot of employees had reached the top of their grade and were not eligible for increases which they did not like either.

The problem comes into play when we put in a new evaluation system and our ranges were decreased from a 5% top range to a 4% (over a 2 year period). Even though inflation is extremely low and cost of living increases are slated at about 3%, employees still have this feeling of "entitlement" to the maximum increase. Consequently, salaries and benefit costs are astronomical because of this.

Have any of you out there had similar problems with this type of situation and if so, how did you overcome the negativity that surely comes with this type fo change?

Any advice would be appreciated.

njjel

A good start would be for top management to set forth the new policy to everyone! That way, there would be no surprises when the increases were lower. Mangement should also inform the employees that at a certain point, salaries will be "capped" and would be eligible for cost of living increase only. Without written support of top mangement, you will have a most difficult job! Good luck.

alga

We are now a small manufacturig plant, like your Supervisors, our Management felt every one should receive the top % given in merit each year and their performance appraisals were absalutely awful. I could take one Supervisor and compare for 30 of his people and he might change 10 words in each performance appraisal.

Last year I met with all Managers/Supervisors and showed them how P/A were done, and that none would be approved by me in HR if I found they had been copied and not honestly rated each person's performance. I weeded out 90% of bad P/As and our merit percentage was for the first distributed to the deserving ee by honest P/A ratings. It took us a month to complete them, with many hours of meeting and counseling with Supervisors. Finnely they understood that I questioned them on bad and good rating on each ee and had them back it up.

I made no exeption to the rule, that one was tough, but it worked and will so from now on. Good Luck!

Fred Flintstone

Our co. CEO did this last year. Max raises basically the same as inflation. Employees realize they are worth exactly the same as they were last year. There is no reward for hard work, loyalty and skill improvement. I have heard some very valuable employees will leave as soon as the economy picks up in our sector. The mediocre employees will stay. Sad.