Staff not happy with 7.5% increases

LazyLion

LazyLion

King of de Jungle
Joined
Mar 17, 2005
Messages
107,590
Reaction score
10,235
Location
District 9
So we gave our staff a 7.5% increase on their wages on 1 March.
They are not happy with this (We are not unionised).
This despite the fact that turnover remains down for us.
Inflation is said to be about 6.2% this year.
We have gone down from R10.9 Million turnover in 2010 to R9.7 Million current turnover.
We have seen many of our customers in the Printing Industry shutting down or down sizing.
The economic outlook for growth in the economy is 0.9% growth this coming year.
It's very possible that SA will be down graded to junk status soon.
We as owners of the business have not taken increases in 3 years and we do not live flashy lifestyles.
It's a family owned business with about 25 employees.

So how do I explain to my staff that 7.5% is the best that we can do in the current economic climate.
Their performance is adequate, but not excelling. They do the bare minimum required.
Hardly any of them are showing any propensity to grow or expand their responsibilities.
They did get Christmas bonuses (13th Cheques).
 
Get new staff. They will learn the hard way. Better still, let them retrain their replacement.

Make an example of one, rest will toe the line. I know its a bit extreme and harsh.
 
Ungrateful swines! When I was in SA I never got more than 5%.
In UK you get even lower increases, if anything at all.

Tell them if they are not happy then there's the door!
 
Last edited:
Tell them if they are not happy with the 7.5%, they are more than welcome to give it back?
 
Consumer prices went up 6.2% in Jan, off a CPI of 4.8% (I seem to recall) for 2015.

So, maybe - say to them they will get 6% inflationary linked plus 1.5% to reduce fiscal drag ..... you are such a nice guy .....
 
Present them with the facts. If they are still unhappy show them the door.
 
OK thanks guys... maybe my heart is bleeding a bit too much.

What I really want to do is to tell them to vote for someone else, but I know that's probably not a good idea to go there.
 
Unfortunately it is the sign of the times.


i wouldn't necessarily call them ungrateful swines....economically times are tough for everybody.

7.5% is actually rather fair IMO.


@ OP i think that communication is the key. Try and explain to staff the gravity of the situation in words that they can relate too....

I suggest improving extrinsic benefits. Its small things that count. Perhaps a small token of gratitude every quarter...anything that improves morale and motivation.



/that said....if the bastids are ungrateful....kindly go over their employment contracts and enforce all performance based scenarios. Its rather easy to fire folks if the law is applied fairly.....
 
Although this was a few years ago, had a similar experience at a restaurant. Staff didn't like the increase. Told the staff that it didn't make sense to keep it open. Closed the store with immediate effect. After day 3 guys were begging for jobs back, at less than existing contact prices. Staff were appreciative of increases in the future.
 
I had similar with a union strike - demanding 11%

I explained to them that
a. As an employer I am bound to sectorial bargaining agreements ... so striking will cost us both and there will be no winners
b. Nobody FORCED anyone to work at the company. When they start - its an offer of employment, and at anytime, staff may, - within the policy of the company - resign.
c. We do not enforce salary confidentiality, but in line with EE are able to justify the equity of salaries paid.
d. Unionised staff salaries are not in my control, but are negotiated and should be taken up with the union who accepted the wage settlement offer.
 
Take it or leave it or leave the company. Times are tough for everyone. People unfortunately sometimes need to feel the pinch before they catch a wake up. They will never aspire to any sort of change if they always have it good...
 
I would in a nice way explain to them, that the 7.5% is the most you can afford, if they want more then you will need to look at restructuring the company and that will probably mean some staff will need to be let go to control costs.

Even the lowliest employee in this country needs to start realising that asking for too much money may ultimately mean no damn job in the very near future.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X