Giving Your Staff/employees A Higher Salary?

[ayayay]

I know some employers give their staff a salary raise after a period of time in the company.

Is that expected?

If so, how much, and how long should they have been working in order to expect a raise?

do most employers raise the salary of the staff, or just a few?

[kcallagmy]

In general, an increase is given after the end of 3 month probation period. But this is only if stated in the orginal employment letter. Otherwise it is an annual review of salary. Either annual by company (ie. all employees on the same date) or annual per the employees start date. Given the current economic conditions and assuming your business is going no better than most, no increase would be expected. This assumes that you have communicated well with employees and they know the state of the business....

[scorecard]

In general, an increase is given after the end of 3 month probation period. But this is only if stated in the orginal employment letter. Otherwise it is an annual review of salary. Either annual by company (ie. all employees on the same date) or annual per the employees start date. Given the current economic conditions and assuming your business is going no better than most, no increase would be expected. This assumes that you have communicated well with employees and they know the state of the business....

Agree, don't give pay rises during troubled times, if you do you will set up a precedent that will bounce back at you.

Some other points:

- Beware of the employee who says they are entitled to more because they have a prinya (bachelor degree), or masters degree, also the employee who claims they entitled to more because they have work experience.

- Modern reward practices are based on the following:

- Define the specific outputs of the job (job description - talk in terms of ultimate expected rather than minute by minute tasks)

- Compare the stated outputs of the job to other jobs in terms of:

- The impact the stated outputs have, directly, on achieving the ultimate business goals of the

company, and

- The level of knowledge and skills and experience needed to achieve the stated and agreed

outputs. (don't fall for the argument that quite simple jobs need a university degree when in

reality that might be 'nice to have' for the individual as a personal item, but in fact not actually

needed to achieve the outputs expected from the job.

I've used the following to counter the demand for more 'Because I have a degree':

- Imagine you have a vacant job for an entry level junior clerical position

- Now imagine that nobody wants the job, then someone comes along and says "I want to take this job because it's very easy and there's no responsibility, but you have to give me a starting salary of 50,000Baht because I have a Ph.D.

- Put this 'case' to your staff, and say "that would mean that the junior clerk gets paid 4 to 5 times more than the senior clerks, is this OK?" Then follow up with the question "I I pay people on this basis, how quickly will the business be bankrupt and nobody has a job?"

[ayayay]

In general, an increase is given after the end of 3 month probation period. But this is only if stated in the orginal employment letter. Otherwise it is an annual review of salary. Either annual by company (ie. all employees on the same date) or annual per the employees start date. Given the current economic conditions and assuming your business is going no better than most, no increase would be expected. This assumes that you have communicated well with employees and they know the state of the business....

Agree, don't give pay rises during troubled times, if you do you will set up a precedent that will bounce back at you.

Some other points:

- Beware of the employee who says they are entitled to more because they have a prinya (bachelor degree), or masters degree, also the employee who claims they entitled to more because they have work experience.

- Modern reward practices are based on the following:

- Define the specific outputs of the job (job description - talk in terms of ultimate expected rather than minute by minute tasks)

- Compare the stated outputs of the job to other jobs in terms of:

- The impact the stated outputs have, directly, on achieving the ultimate business goals of the

company, and

- The level of knowledge and skills and experience needed to achieve the stated and agreed

outputs. (don't fall for the argument that quite simple jobs need a university degree when in

reality that might be 'nice to have' for the individual as a personal item, but in fact not actually

needed to achieve the outputs expected from the job.

I've used the following to counter the demand for more 'Because I have a degree':

- Imagine you have a vacant job for an entry level junior clerical position

- Now imagine that nobody wants the job, then someone comes along and says "I want to take this job because it's very easy and there's no responsibility, but you have to give me a starting salary of 50,000Baht because I have a Ph.D.

- Put this 'case' to your staff, and say "that would mean that the junior clerk gets paid 4 to 5 times more than the senior clerks, is this OK?" Then follow up with the question "I I pay people on this basis, how quickly will the business be bankrupt and nobody has a job?"

Yeah, thnx for the tips, luckily, i have not run into these problems so far (knock on wood), but up until now, no employee have been staying with the company longer than just about a year, but now i have 2 people, both being working for the company for more than a year now. One of them actually just brought it up, that she had been with the company for more than one year now, i guess, implying that a raise might be considered.

The other person has been working for around one and a half year now.

Edited August 18, 2009 by ayayay

[ayayay]

In general, an increase is given after the end of 3 month probation period. But this is only if stated in the orginal employment letter. Otherwise it is an annual review of salary. Either annual by company (ie. all employees on the same date) or annual per the employees start date. Given the current economic conditions and assuming your business is going no better than most, no increase would be expected. This assumes that you have communicated well with employees and they know the state of the business....

Do most companies do an annual review of salary, or is it just a few, or some companies that does this?

What do you consider to be a reasonable raise per year? 5%, 10%,15% of the original salary?

[kcallagmy]

In general, most companies do an annual review. Some do 6 months, but very few. As far as increases go, it depends on many factors. So difficult to give a general answer. Many companies set a budget for increases that may be a percentage or two above inflation. Over the last few years, excepting last year this would result in averages of 6-8%. I am firm believer of paying for performance so I would end up giving top performers in this scenario 8-10% and poor performers 4% and very poor performers 0% in the hopes they would take the hint and improve or decide to leave. Easier in Thailand to convince someone to leave than to "fire" them.

Hope this helps.....