Managing Employee Performance and Compensation: A Comprehensive HR Discussion

Dear All,

I am working with a leading financial sector as HR, and I want to know if the marketing people are not able to achieve the target, is it legal to withhold their salary? If we take any letter from him stating that he will not claim any salary if he is unable to achieve the target, is it legally correct? What measures shall we take to withhold the salary because in my company, there are marketing people who are not achieving the target but still getting the salary? Can you please help me in coming out of this problem?

Regards,
Chandrasekar

No, it is not right to hold the salary because the employee could not achieve his target. However, you can design his remuneration in such a way that the majority of income comes through performance-linked incentives/sales target-oriented incentives.

Regards,
Santosh
hr.santosh@gmail.com

I think it totally unethical to hold the salary of non performing sales/Marketing guys.
This would harm ur organization in many ways …. Could bring bad name in market, legal action can be taken too.
You can of course have some better means to do it..u need to motivate them try to understand wat exactly is the reason for there non performance…. management can do something to build up there morale……….Infact holding sal. Would demoralize them hence attrition rate would increase………

Dear Chandrasekar,

I would like to inform you, please do not hold the salary of any employees, as it leaves a bad impression on the company as a whole. People may not prefer to join your company if they come to know this fact. If people find out about such incidents after joining our company, they may leave as early as possible.

Secondly, treat marketing guys as an asset to your company. They may not achieve targets in your company, but if they leave and join another company, they may excel. Try to understand the problems they are facing and come up with innovative solutions. They may not perform well due to various factors (the market has become uncertain). Sit with them and create a strategic plan that benefits both them and the organization.

Before withholding anybody's salary, imagine yourself in that position and then proceed.

Regards,
Amal

Problems arise with each and every human being. I advise you to sit with each marketing person, understand their problems, listen to them, and ask them questions. If you find the answers relevant and convincing, then motivate them. Try something new that has never been attempted before. Your main agenda should be "target achieved."

Be a motivational leader; do not hinder anyone's growth or stop their monthly checks. Everyone works for money, and all of us have various commitments.

If you notice your employees working hard but still not achieving their targets, try to speak to them to understand their problems. Alternatively, conduct some training sessions. Only if things do not improve, then you may have to give them a prior notice of a month or two.

By the end of the day, performance does matter. You cannot deny the fact that junior-level employees (marketing/sales) are key to generating profit and advertising in the market. If one leaves, the next one joins, and you never know, they might boost the business.

Thank you.

Dear,

Legally, you cannot withhold anyone's salary, regardless of the circumstances. If someone is not performing well, their services can be terminated, but you cannot withhold their salary.

Thank you,
J.S. Malik

Don't go for withdrawing salary; that is not a great idea. As an HR professional, I believe you can set performance targets and conduct reviews frequently. Key indicators will show if they have achieved what was set. If not, please point out that they are being observed and given time by management to prove themselves. I am certain that after the first two reviews, you will see results. I must say that Rohit Patil has provided an exact explanation. Anything I say would just be a repetition!

Dear Friend,

Please do not withhold salaries of employees. This is a heinous crime against humanity and legally, you cannot commit such an offense. The punishment is very severe for such harassment, and there are penalties with interest. A shrewd employee may claim damages due to the harassment, causing mental strain and agony, providing another opportunity to make a claim.

You can imagine how difficult it will be in case this becomes a dispute. Even otherwise, who will work for a company that does not pay salaries? For example, your company makes profits but does not share them with employees, except for some incentives and commissions. The profit is not shared equally as a shareholder in the company stake.

Therefore, during a recession, if the business is not doing well, the employer has to bear expenses and pay salaries to employees, or they have to close the business.

Rashid