Hi Seniors,
I am worrking as a HR in a small company. We recently announced ahike of 35% to one of the employee working from two years onwards and we said this hike is applicable from August2012 onwards, he want to resign due to some personal issuues and he resigned on 1st August, we have 2months of np and mgt dont want to give hike (decided earlier) to the employee as he is resigning. Mgt asked to take a decision on this. Please guide me..
Thanks & regards,
Sravya
From India, Hyderabad
I am worrking as a HR in a small company. We recently announced ahike of 35% to one of the employee working from two years onwards and we said this hike is applicable from August2012 onwards, he want to resign due to some personal issuues and he resigned on 1st August, we have 2months of np and mgt dont want to give hike (decided earlier) to the employee as he is resigning. Mgt asked to take a decision on this. Please guide me..
Thanks & regards,
Sravya
From India, Hyderabad
It is company policy. It is quite normal to put on hold the increment for the resigned employees. Again, it depends on the circumstances and one should analyse the reasons for his resignation. If the employee is just leaving the company for the sake of money, the decision to hold the increment may be taken. If the employee is leaving due to genuine personal reasons, the increment may be considered by giving human touch.
It is the discretion of management.
Pon
From India, Lucknow
604It is the discretion of management.
Pon
From India, Lucknow
In most organisations, Increment is put on hold if an employee resigns or is serving notice.
However, as Pon has mentioned, as a goodwill gesture, it can be given in exceptional circumstances(Long term service, good relations with management, good performer etc).
As a company you will have to pay out two months incremental salary with no benefit in return. Evaluate how much it comes to and whether the organisation wants to bear this financial burden.
You can always say its company policy to withold increments for resignees and end the story.
From Netherlands
However, as Pon has mentioned, as a goodwill gesture, it can be given in exceptional circumstances(Long term service, good relations with management, good performer etc).
As a company you will have to pay out two months incremental salary with no benefit in return. Evaluate how much it comes to and whether the organisation wants to bear this financial burden.
You can always say its company policy to withold increments for resignees and end the story.
From Netherlands
Hello Seniors,
I do not know why management had taken decision to kept his 30% hike in hold.
Sravya : Pls analyze the reason and convey the same thing to Mgt to take proper decision, your there to do needful for your staff.
From India, Hyderabad
I do not know why management had taken decision to kept his 30% hike in hold.
Sravya : Pls analyze the reason and convey the same thing to Mgt to take proper decision, your there to do needful for your staff.
From India, Hyderabad
Hi! Sravya, I feel that you should relieve the resigned employee effective August 1, 2012. LEmployer can waive Notice Period and as employee has come out of Employement Contract, s/he can not demand Salary for the period.
Hello Sravya,
This topic was discussed earlier in CiteHR quite a few times--here's the Link to one of them.
https://www.citehr.com/340976-increm...signation.html
You can use the reSearch facility @ the top of this page to see more threads for this topic.
I think the core essence of a Salary Hike is 'Performance' [both in terms of job-related work AND attitudinal issues] for a particular period of time--NOT whether the employee is close to the management or not.
For the issue under consideration, the hike is being given w.e.f. 1 Aug, 2012 for the performance of PAST YEAR--during which he was very much present [and I presume preformed very well--else 35% hike wouldn't be considered].
Coming to the reasons that many employees give--'personal reasons'--let's NOT be naive. Unless an employee is able to share the reasons [at least partially, if not fully] at least in-confidence with his/her boss and/or peers [if not with HR], one can safely assume that it's for another job. Fortunately or unfortunately, this is one reason that's highly used AND misused often.
If someone REALLY has personal reasons, his/her MOST LIKELY response ought to be to ask for leave--maybe for a long duration. Would YOU resign when you have a personal reason & things to handle on priority on the personal front--in the process ADD to whatever you stress are undergoing? Pl give this a thought.
At the End-of-Day, like Pon mentioned, it's the 'discretion of management'--which again depends on what 'THEIR' perceptions/views of 'people management' are.
All the Best.
Rgds,
TS
From India, Hyderabad
This topic was discussed earlier in CiteHR quite a few times--here's the Link to one of them.
https://www.citehr.com/340976-increm...signation.html
You can use the reSearch facility @ the top of this page to see more threads for this topic.
I think the core essence of a Salary Hike is 'Performance' [both in terms of job-related work AND attitudinal issues] for a particular period of time--NOT whether the employee is close to the management or not.
For the issue under consideration, the hike is being given w.e.f. 1 Aug, 2012 for the performance of PAST YEAR--during which he was very much present [and I presume preformed very well--else 35% hike wouldn't be considered].
Coming to the reasons that many employees give--'personal reasons'--let's NOT be naive. Unless an employee is able to share the reasons [at least partially, if not fully] at least in-confidence with his/her boss and/or peers [if not with HR], one can safely assume that it's for another job. Fortunately or unfortunately, this is one reason that's highly used AND misused often.
If someone REALLY has personal reasons, his/her MOST LIKELY response ought to be to ask for leave--maybe for a long duration. Would YOU resign when you have a personal reason & things to handle on priority on the personal front--in the process ADD to whatever you stress are undergoing? Pl give this a thought.
At the End-of-Day, like Pon mentioned, it's the 'discretion of management'--which again depends on what 'THEIR' perceptions/views of 'people management' are.
All the Best.
Rgds,
TS
From India, Hyderabad
Hi Sravya,
An increment or a pay hike has a purpose ie to motivate the employee to continue to his valuable contribution to the growth and prosperity of the organisation. In the instant case the above purpose is not served which induces the employer to deny the above benefit. The management is right in its decision. The management can exercise its discetion if it decides to pay the pay hike during the notice period. Please do agree that the dispensation difers between public sector/ govt and the private sector ( you are positioned in the latter).
Regards
S.K.Johri
From India, Delhi
An increment or a pay hike has a purpose ie to motivate the employee to continue to his valuable contribution to the growth and prosperity of the organisation. In the instant case the above purpose is not served which induces the employer to deny the above benefit. The management is right in its decision. The management can exercise its discetion if it decides to pay the pay hike during the notice period. Please do agree that the dispensation difers between public sector/ govt and the private sector ( you are positioned in the latter).
Regards
S.K.Johri
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
How to Handle an Employee Resignation.doc