The eternal problem - how to increase salary is reasonable?

Raise salaries at the same time for everyone

Increasing the general salary spectrum is the simplest and easiest method to implement. You don't have to think twice about how to increase this person and how that person is reasonable. However, this is often the case in corporate reorganization situations and applies a growth rate above a percentage of the existing salary.

A limitation of this method is that it does not create motivation to work and strive because it does not filter out a worthy increase for good employees, but merely raises the salary level of all departments. If you just apply this method, the good and the bad employees will both get the same increase, the veteran contributors and the new hires will get the same amount, which will easily cause problems. conflict at work and decrease in labor efficiency.

Salary increase based on work performance

Performance-based salary increase is a commonly applied method today, work performance, or revenue commitment is an important indicator of the ability of a particular employee. However, some recruitment experts believe that, if managers focus too much on these numbers, this will make employees willing to trade off long-term performance for immediate benefits. inherently a miscalculation in business orientation. This trade-off not only brings long-term disadvantages, but also affects company culture and human resource management. Now your employees will work for the big bonus, not for the company itself. Once these policies are suddenly dropped, your employees will be ready to quit and move to another company.

A good way that is often applied by businesses is to combine the two methods above in the same employee salary plan. First, the manager will raise the salary level for the employees, then give a percentage bonus to the best employees. This way you can control the performance of both the team and the individual.

Achievement-based bonus packages

Recognizing an individual's outstanding achievements and rewarding them is one of the ways employers motivate employees and increase performance and efficiency.

However, in order for these bonus packages to work to their fullest potential, employers need to develop a set of standards and conduct fair assessments to uncover outstanding achievements.

In addition, the bonus level also plays an important role. Employers need to have projections according to the company's budget from time to time. And must ensure that the person with the best performance will receive the highest reward.

Increasing employee salaries is not an easy job for employers, especially when you have to report and receive approval decisions from your superiors, while balancing a reasonable plan for the human resources department. Above are 03 methods of increasing salary based on purpose that have been applied in many large companies, hope that you will find a suitable balance plan to bring the highest efficiency.