Pay raises
 

We had a meeting today regarding a new program to determine pay increases. Prior to this meeting my company has always given random raises based on whatever the manager thought was fair. With the new program all jobs were assigned a grade scale and raises will be given based on a matrix.

Here is my issue, and I would like everyones thoughts. If you are currently at the high end of the matrix and any increase would put your salary outside of the top pay level-- you do not receive a raise. My question for the hr manager was "beyond the desire to do well, what is the incentive to perform" The response I received was r"aises are a privledge, not a right. If you are at the top end of the scale you need to figure out if the benefits, people, environment are worth staying without an increase. If not, then you have a decision to make." She also said that the managers would work on fiding ways to provide internal incentives, such as cross training --"mental enrichment" is what she called it.

Does this seem like a logical response from an HR manager? Why should someone perform if they will not receive a raise? With no pay increase why would anyone want to learn a new job--only to make you more valuable to the compnay w/o the reward.

wendi

That definately is a weird response, IMO. While I understand that raises are a privledge and not a right, I too would have questions. I wouldn't want to perform my best if I knew that I would not receive anything out of it. If I were in that situation, I would take advantage of the cross-training, simply so I could place that on my resume. Then, I would be floating my resume to other companies with hopes for a better offer. Actually, that's kind-of what I did at my old job! ;) Good luck!

That does seem like an odd response. Not exactly a boost to employee morale!

What about the possibility of promotion? What about things like one-time incentive bonuses? Again, these are privileges, not rights, but it may be worth asking the question.

It sounds like something HR would say, but that no good consultant would reccommend to keep good people.

I think your company is trying to get rid of people who command top dollar.

I can see that. People at the top end of the matrix will either get tired of working harder (cause you know they aren't going to lighten the work load!) without a pay increase and go to another job (which gives the company the ability to hire someone at the low end of the salary range and save some money) or you will just decide not to keep improving (cause your pay isn't) then they will let you go because you aren't scoring high on your evaluations.

Wow. That was the longest sentence I think I've ever written. It was fun!!!

PsychTau

I suspect that is the response of a manager trying to put the best possible face on a situation that he/she doesn't necessarily agree with.

Remember that the HR person seldom makes the rules. But they do have to live with them.

As someone in HR, and with a pay structure similar to the one mentioned, I think the HR person that you spoke of should have her SHRM card snatched! (btw, SHRM is a HR professional organization). Most organizations who have this policy (no going over salary grades) will allow emplolyees to receive a "bonus" instead of a raise. The bonus is a lump sum and does not apply to your base salary.

She/he should have also mentioned that salary surveys are done on a yearly basis (at least I hope they are) to make sure that salaries are competative in the market, so you may not actually "max" out, even if you are close to the top because salaries are adjusted on a yearly basis.

Finally, someone else mentioned the possibility of promotion and I agree. If the associate is valuable to the company they should look for ways to place that person in another roll (at a higher grade) that will allow them to continue to contribute.

Of course I realize that every company does not practice good employee relations.

As DeltAlum said, it might be that she doesn't necessarily agree with the policy, was not expecting that question, and let her true feelings show. Goes to show that when communicating news like this you should always try to figure out what questions will be asked and come up with standard answers IN ADVANCE.

It was made clear there would be no bonus, no compensation thru additional vaca time--nothing.
The HR Manager told us she is well aware there is no where to advance in the company-we are all stuck where we are-- so we could cross train. According to the HR Manager cross training "should be a much appreciated form of compensation. It says we realize you are a benefit to the company."

As far as salary surveys being done on a yearly basis-- no. They would review the midpoints every year or so, just to make sure the cost of living did not effect it. We also will not receice COL adjustments. We were told (in so many words) it is not their problem that the cost of living increased.

Hummmm..... maybe looking for a new job would be a good idea!

Well, I can say this for your HR Manager, she is right about training being a form of compensation. Take the training and turn it into a higher paying job somewhere else.

While I don't agree with the way she said it, or the policy, she is right in that you have to decide if the benefits of the job out weigh the fact that you might not get a raise. BTW, are you actually in this position or is this just a future possibility? I've also found that sometimes people make a policy in theory and when the you know what hits the fan and folks start leaving en masse, they change their tune a bit.

Agreed... sounds like it's time to find a new job, and take advantage of the training while you're looking.