Staff asking for more money to make ends meet

[LazyLion]

So the staff asked for a meeting yesterday with management.
Basic complaint is that they can't make ends meet with all the recent fuel increases.
Now, we consider ourselves already paying a generous salary.
When I put the staff positions into this website https://www.payscale.com/index/ZA
Our staff show up as earning more than the average industry positions.
Most of our guys are unskilled machine minders trained specifically for this job.
They also get many other perks, like interest free loans, leniency on sick days and strike days, etc.
So if we add another R200 per month for them, it's going to increase the salary bill for the company by another R2000 per month.
(and most of them were already given above average increases in March - like 10 to 12%).

It probably won't kill us to do this, but are we creating unrealistic expectations by doing this?

 

[Ninja'd]

It's gonna set a precedent for mid-year increases whenever fuel prices go up.

 

[maumau]

This would eat at me

Anything they can do in return for the extra money? Even if it's washing the company cars otherwise every time something increases in price they'll want more pay.

Fuel increase is just another tax and companies are expected to suck it up :wtf:

 

[Kosmik]

This would eat at me

Anything they can do in return for the extra money? Even if it's washing the company cars or something otherwise every time something increases in price they'll want more pay.

Fuel increase is just another tax and companies are expected to suck it up :wtf:

More consumers. Companies will always pass on fuel costs.

Lazy Lion, its a serious problem. A person can easily sympathize with them as everyone is in the same boat BUT by the same token, you as a company, may not be able to hike your prices accordingly unless you have a direct fuel mechanism. Best thing I can suggest is be open and frank with them. Try come up with a solution together, possibly plan a way to increase your sale to cover additional cost and then pass it on to them. The fact of the matter is , although you are paying higher than a norm, you do so either to retain your staff or reward for good work. Inflation is now robbing your previous remuneration of that power and the reality is , everything will shift up, whether we like it or not. Maybe consider a temporary solution? Set aside a travel/fuel type portion of salary that can have a mechanism in place against it as fuel fluxes. I don't recommend a permanent increase, that should happen annually on review but even the government is trying to find a structure to help alleviate the spiral.

 

[Rustie]

One lesson learned is if a staff member asks for -anything- extra over and above what is in the current contract, the first thing you ask is, what are you prepared to do extra to earn it?

The second you open the door to arbitrary compensation and benefits requests, the door remains open for always.

 

[Nick333]

Tough one. I don't know what you should do, but it does make feel like ranting about how this effing government is fccking the entire country in the ass.

Just bear in mind that there are more increases coming and a couple hundred will be a temp fix at best.

 

[ToxicBunny]

So the staff asked for a meeting yesterday with management.
Basic complaint is that they can't make ends meet with all the recent fuel increases.
Now, we consider ourselves already paying a generous salary.
When I put the staff positions into this website https://www.payscale.com/index/ZA
Our staff show up as earning more than the average industry positions.
Most of our guys are unskilled machine minders trained specifically for this job.
They also get many other perks, like interest free loans, leniency on sick days and strike days, etc.
So if we add another R200 per month for them, it's going to increase the salary bill for the company by another R2000 per month.
(and most of them were already given above average increases in March - like 10 to 12%).

It probably won't kill us to do this, but are we creating unrealistic expectations by doing this?

As a human I can see the dilemma... and its a tough one..

As a company, its simple... They were given an increase in March of above inflation... no increases will be considered beyond performance based increases until next years increase period.

 

[Venomous]

As a human I can see the dilemma... and its a tough one..

As a company, its simple... They were given an increase in March of above inflation... no increases will be considered beyond performance based increases until next years increase period.

This.

 

[Ho3n3r]

So the staff asked for a meeting yesterday with management.
Basic complaint is that they can't make ends meet with all the recent fuel increases.
Now, we consider ourselves already paying a generous salary.
When I put the staff positions into this website https://www.payscale.com/index/ZA
Our staff show up as earning more than the average industry positions.
Most of our guys are unskilled machine minders trained specifically for this job.
They also get many other perks, like interest free loans, leniency on sick days and strike days, etc.
So if we add another R200 per month for them, it's going to increase the salary bill for the company by another R2000 per month.
(and most of them were already given above average increases in March - like 10 to 12%).

It probably won't kill us to do this, but are we creating unrealistic expectations by doing this?

I would suggest not doing it. It will open so many cans of worms going forward. All of the rest of the people are sucking it up.

 

[Nick333]

As a human I can see the dilemma... and its a tough one..

As a company, its simple... They were given an increase in March of above inflation... no increases will be considered beyond performance based increases until next years increase period.

Actually, this. They had a generous raise 3 months ago. Asking for more now is a bit of a cheek. I'm guessing the employees of LL and Co. see management as push overs. The problem is that most people are living at the limits or over of their income unless they are very well paid and always will. The question to ask when you are struggling is did you really need that TV or new lounge suite. Even those at the bottom of the income scale are guilty.

The peeps in question got a raise above inflation 3 months ago and they've already accounted for the extra money? What's the bet they've all got months old new debt?

 

[Messugga]

Actually, this. They had a generous raise 3 months ago. Asking for more now is a bit of a cheek. I'm guessing the employees of LL and Co. see management as push overs. The problem is that most people are living at the limits or over of their income unless they are very well paid and always will. The question to ask when you are struggling is did you really need that TV or new lounge suite. Even those at the bottom of the income scale are guilty.

The peeps in question got a raise above inflation 3 months ago and they've already accounted for the extra money? What's the bet they've all got months old new debt?

Yep, it speaks to a bit of a sense of entitlement to expect to be insulated from the happenings of the country, especially having received an above-inflation increase relatively recently.

 

[rietrot]

If you want to be nice you can organise some basic financial planning or budgeting training to educate them.
That should be beneficial to them and the company if they understand money and utilise it better.

 

[LazyLion]

Boss has approved the increase of R50 per week. Total cost to the compay = R1677.00 per month. It's not going to hurt us really.
But we will give a memo asking staff to go the extra mile in doing certain things.

1) Saving on electricity, lights and heaters
2) Keeping work areas clean and neat
3) Looking after company equipment
4) Reducing wastage.
5) Increased vigilance in terms of Security.

So, we're going to go ahead with it.

 

[Gaz{M}]

Call them into a room, individually.

Ask them the question "Why is SA such a **** up?"

If they answer "Because of the ANC.", give them R100. Any other answer and they get zilch.

Then ask "Who are you voting for in the next election?". Any other answer besides "ANC or EFF" gets another R100.

It's called voter education.

 

[ToxicBunny]

Boss has approved the increase of R50 per week. Total cost to the compay = R1677.00 per month. It's not going to hurt us really.
But we will give a memo asking staff to go the extra mile in doing certain things.

1) Saving on electricity, lights and heaters
2) Keeping work areas clean and neat
3) Looking after company equipment
4) Reducing wastage.
5) Increased vigilance in terms of Security.

So, we're going to go ahead with it.

I would suggest you attach actionable KPI's to the increase... they need to increase production by 5%, or something of that sort.

 

[ToxicBunny]

Call them into a room, individually.

Ask them the question "Why is SA such a **** up?"

If they answer "Because of the ANC.", give them R100. Any other answer and they get zilch.

Then ask "Who are you voting for in the next election?". Any other answer besides "ANC or EFF" gets another R100.

It's called voter education.

No, that is just downright BS...

A persons political affiliation should have zero bearing on whether they get an increase or not....

 

[Gaz{M}]

No, that is just downright BS...

A persons political affiliation should have zero bearing on whether they get an increase or not....

Actually, It's about damn time in SA people realise that who they vote for impacts them financially and personally.

(Of course I wasn't serious OP does this. It's illegal. But I wish people were more aware.)

 

[LazyLion]

I did actually bring up the voting thing yesterday.
But I said "I'm not telling you who to vote for, but I will tell you who to not vote for - the ANC made this mess.."

 

[ToxicBunny]

Actually, It's about damn time in SA people realise that who they vote for impacts them financially and personally.

(Of course I wasn't serious OP does this. It's illegal. But I wish people were more aware.)

I 100% agree with you that the education part is necessary and understanding the consequences.... but yeah, doing it openly like that would be highly illegal.

 

[Suspect99]

They'll just ask again next time the fuel increases