Raise or No Raise?
Caroliso
352 Posts
One of my supervisors wants to make an equity adjustment to his staff membr's salary, and his reasons fall within our company's definition of when one does equity adjustments. Some of it is market factors (we subsequently had to hire a peer at a higher salary because the market had changed that quickly) and part is due to skills he's learned that have elevated his job.
The problem is, this employee has a particular performance issue, last minute absences. Not enough yet for a written warning, but next time there will be. In every other way he is a good and effective employee.
We're both undecided about the equity adjustment, which we otherwise would put in for. Theoretically I feel that the two issues are separate, but in truth any raise sends a message to the individual and to those around him if they find out about it (which they invariably do around here). The message especially to the colleagues would not be a good one.
We can wait until the annual process and see how the performance thing pans out, but that is six months away during which time this guy is being paid less than we feel he should be, and of course if he left we'd have to pay that and more to his replacement.
What would you do?
The problem is, this employee has a particular performance issue, last minute absences. Not enough yet for a written warning, but next time there will be. In every other way he is a good and effective employee.
We're both undecided about the equity adjustment, which we otherwise would put in for. Theoretically I feel that the two issues are separate, but in truth any raise sends a message to the individual and to those around him if they find out about it (which they invariably do around here). The message especially to the colleagues would not be a good one.
We can wait until the annual process and see how the performance thing pans out, but that is six months away during which time this guy is being paid less than we feel he should be, and of course if he left we'd have to pay that and more to his replacement.
What would you do?
Comments
Also, this person isn't relatively new, he's been here 15 months.
Have a candide conversation with the person. Let him know what the company's expectations are right out of the starting gate. You don't want to let that employee know that he's got the upper hand on you and the company. You're absolutely right that the employees will find out about the pay difference and you'll then be dealing with a moral problem. You don't want to worry about loosing this one person, think about all the others you will loose if you don't to the right thing.
Nearly every time I've been kicked in the shorts I've grown and matured and greatly appreciated later. It's a shame to have "spoiled" employees.
Many times adults are worse than children when they become spoiled. Think about managing the company's culture. You set the tone for what behavior is acceptable and what is not. Don't be afraid to create waives... you're reputation for integrity is what makes you a success in HR.
You might take the approach with the employee letting him know that his performance is good in some areas and unacceptable in others and until he straightens up he won't see the raise. You're not asking for the impossible or to move mountains, you're talking about coming to work on time. Keep in mind, if he resigns - I would think he would have difficulty explaining in an interview that he resigned because his last employer wouldn't tolerate him coming to work late. Good luck finding a job with that on your record pal!
I would handle it this way. Call the employee into the office. Give them half the raise you would have otherwise given them. Tell them if they have no absences or early leaves from work or late coming into work that in the next six months they will recieve another raise for the amount they just received.
compromise...communication...are very powerful words.
The employee needs to understand two things:
#1. They are a valued employee and you value them as such (1st half of raise)
#2. They are replaceable and the attendance problems will not be tolerated. (6 months waiting period for the 2nd half of the raise)
Certain employees will push the limit as far as you allow them...when you stop allowing it than they stop pushing it. When it hits their pockets they listen.
You might also ask if there is a problem with the schedule they are working and maybe work out different hours. If they are always leaving early maybe they could start earlier in the day and leave earlier. If they are always arriving late maybe they could start later and work later. If they are always off on Friday maybe they could work 4 ten hour days.
Lots of Flex time options there.
We use flex time a lot here to keep our employees happy. One GL accountant works from home two mornings a week to save on Daycare. His job is always done.
Shirley
It seems that you and I have very similar views on this subject matter. One approach that you brough up regarding half the pay now and half the pay later based on the employee improving attendance was something that came to my mind as well in writing my orignial reply, but I hesitate in taking that approach for one reason. Could that create a "contract" of sorts thereby changing the "at-will" employment relationship?
In our employee handbook we go as far as to say words to the effect of "introdoctrination period not limited to 90 days". I heard somewhere that by saying "90 day probationary period", you are informing the employee that they will be employed for a minimum of 90 days. Granted, in most situations you would want to allow a person 90 days to adjust to their new position and the new company, but if you have an employee that you clearly determine was a bad hire within the first week or so, you want the flexibility to terminate immediately, accept the loss, and move on rather than wait till the end of 90 days to terminate.
In likeness to this situation, by saying half now and half later under said conditions, the employer may be held to implied contract of continued employment for a period of time.
Any thoughts?
If that is a concern than you could say if you are still employed at our company after six months and your attendence approves you will receive another raise.
Shirley
What I would consider doing is offering a market adjustment now up to the amount that you feel his performance warrants. I then would state that he will be eligible for a salary review in 6 months. At that time you can consider both the market and his performance and pay him accordingly. This way, you are throwing the option out that you will review his salary, but not promising an increase.
I would also then reiterate the importance of attending work and being on time.
That is my two cents.....
I like the idea of giving him a portion of the equity adjustment now with the rest tied to suitable performance in the next six months. If he doesn't improve his attendance in the next six months he will either not be here, will be in the middle of progressive discipline, or teetering just on the edges of progressive discipline, and any of these will affect his annual increase. I could live with the remaining inequity by pointing to the difference in performance levels of the two folks in those roles.
There is still the issue of department morale if someone finds out about the increase and questions it, but we have an open salary policy here and I'm comfortable explaining the equity issue and if they raise performance, say that is being addressed. Not perfectly clean, but it will have to do as a solution, thanks again.
Sounds like a great idea! The concept is clear from your explanation, but what does "PIP" stand for?
BB
Basically instituting your discipline policy for the attendance and other issues this EE is experiencing.
I keep wanting to divorce some of this from performance, which is why I like Shirley's solution.