Staff not happy with 7.5% increases

[SlinkyMike]

I think 7.5% is pretty fair given the current conditions.

I didn't get that and I'm a key player in the business.

I'm fairly certain 7.5% is on the high end - is there perhaps some publication with a benchmark for your industry?

You could examine that, most likely find that the amount is fair and then share it with your employees. Show them you've done two things:
a.) your homework
b.) right by them

...increases are not mandatory, they are sensible from the point of view of retaining talent though. Showing that you take it seriously doubles down on that IMHO. You will still have some who'll complain though so don't expect too much.

 

[techead]

wow we just got 6% and I will take that and run

 

[IainMarsh]

We had a issue about a year ago, where one staff member was stirring up a whole lot of trouble. Organised a staff meeting to hear out there issues. Staff demanded salaries to be doubled. We said ok, who was the last four staff members to be employed. you guys are fired and the remaining four members will get double the work to do.

This shut them up properly. incidentally we had 4 staff members leave in the next 4 months. They where the ones causing problems.

 

[halfmoonforever]

Everyone saying to fire and get new staff should please explain your business experience and show us how profitable you are. If not. STFU

@OP

I would play open cards with the people. Do nice charts and a presentation of how the company is doing, what overheads you're covering, how the business is not growing and what you did to help and show them they the increase they got is above inflation.

Last year we had to make do with 5%, it's insane. But if you play open cards, and manage the PERCEPTION that they have, you'll get the loud ones to STFU and work (or leave)

If it's family run and only 25 employees, I'd say add those 25 employees to your family and be open, show them that 9 million turnover doesn't mean 9 million profit in your pocket etc.

 

[Cicero]

Everyone saying to fire and get new staff should please explain your business experience and show us how profitable you are. If not. STFU

@OP

I would play open cards with the people. Do nice charts and a presentation of how the company is doing, what overheads you're covering, how the business is not growing and what you did to help and show them they the increase they got is above inflation.

Last year we had to make do with 5%, it's insane. But if you play open cards, and manage the PERCEPTION that they have, you'll get the loud ones to STFU and work (or leave)

If it's family run and only 25 employees, I'd say add those 25 employees to your family and be open, show them that 9 million turnover doesn't mean 9 million profit in your pocket etc.

+1

**** man, I'd love it to see actual numbers sometimes!!

I dont need to know everyone's individual salaries and whatnot, just say we pay annually Rx million on salaries. Then run over the other numbers.

 

[Drifter]

If got a 7.5% increase I would have wood for a week.

 

[SinghDude]

If got a 7.5% increase I would have wood for a week.

As long it is good wood and not dead wood

 

[Purply]

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).

I'm in the block making industry (foiling/embossing/debossing etc etc) and we gave our staff an 14% increase.......... they also not happy.

Doubt anyone is going to be winning this year

 

[The_Librarian]

I'm in the block making industry (foiling/embossing/debossing etc etc) and we gave our staff an 14% increase.......... they also not happy.

Doubt anyone is going to be winning this year

wut?

14%?

that's generous!

 

[skeptic_SA]

Everyone saying to fire and get new staff should please explain your business experience and show us how profitable you are. If not. STFU

@OP

I would play open cards with the people. Do nice charts and a presentation of how the company is doing, what overheads you're covering, how the business is not growing and what you did to help and show them they the increase they got is above inflation.

Last year we had to make do with 5%, it's insane. But if you play open cards, and manage the PERCEPTION that they have, you'll get the loud ones to STFU and work (or leave)

If it's family run and only 25 employees, I'd say add those 25 employees to your family and be open, show them that 9 million turnover doesn't mean 9 million profit in your pocket etc.

View attachment 347603

 

[OMB]

Everyone saying to fire and get new staff should please explain your business experience and show us how profitable you are. If not. STFU

@OP

I would play open cards with the people. Do nice charts and a presentation of how the company is doing, what overheads you're covering, how the business is not growing and what you did to help and show them they the increase they got is above inflation.

Last year we had to make do with 5%, it's insane. But if you play open cards, and manage the PERCEPTION that they have, you'll get the loud ones to STFU and work (or leave)

If it's family run and only 25 employees, I'd say add those 25 employees to your family and be open, show them that 9 million turnover doesn't mean 9 million profit in your pocket etc.

This^

The more open cards you play the better, especially being a family business, people are often only unreasonable or ungrateful when they don't have the facts of the reality of the situation, remember that in the region 70% of employees feel disengaged in the workplace environment. The more engagement the better the results you get, I've been doing lots of work around employee engagement over the last 10 years or so and I know for a fact that it works.

 

[LazyLion]

I'm in the block making industry (foiling/embossing/debossing etc etc) and we gave our staff an 14% increase.......... they also not happy.

Doubt anyone is going to be winning this year

Haha. We are a foil supplier. Send me your details and we can send some business your way!

 

[werfie]

Everyone saying to fire and get new staff should please explain your business experience and show us how profitable you are. If not. STFU

@OP

I would play open cards with the people. Do nice charts and a presentation of how the company is doing, what overheads you're covering, how the business is not growing and what you did to help and show them they the increase they got is above inflation.

Last year we had to make do with 5%, it's insane. But if you play open cards, and manage the PERCEPTION that they have, you'll get the loud ones to STFU and work (or leave)

If it's family run and only 25 employees, I'd say add those 25 employees to your family and be open, show them that 9 million turnover doesn't mean 9 million profit in your pocket etc.

Well this decision will depend on the type of audience and skill levels of the workers I would say?

There is probably nothing worse than throwing around figures of hundreds of thousands/millions on a white board in front of people that can't comprehend the significance of a 7.5% increase in this economy. Probably sounds bad, but I say this out of experience. My dad did this once with his small business and when the employees calculated the amount of money generated vs. their perception of the expenses then all hell broke loose and they demanded more because they couldn't understand everything money is spent on in a business. You also certainly can't explain to unhappy workers why it is necessary for a business to make any sort of profit to stay healthy and in business.

Use it don't use it, but I wouldn't go down this road.

 

[DrJohnZoidberg]

Haha. We are a foil supplier. Send me your details and we can send some business your way!

Damn, you must heard all the "foil your plans" puns already

 

[LazyLion]

Damn, you must heard all the "foil your plans" puns already

Yep, in fact a lot of them already made their way into our advertising!

 

[OMB]

Well this decision will depend on the type of audience and skill levels of the workers I would say?

There is probably nothing worse than throwing around figures of hundreds of thousands/millions on a white board in front of people that can't comprehend the significance of a 7.5% increase in this economy. Probably sounds bad, but I say this out of experience. My dad did this once with his small business and when the employees calculated the amount of money generated vs. their perception of the expenses then all hell broke loose and they demanded more because they couldn't understand everything money is spent on in a business. You also certainly can't explain to unhappy workers why it is necessary for a business to make any sort of profit to stay healthy and in business.

Use it don't use it, but I wouldn't go down this road.

You think the millions of employees that work for large corporations aren't aware of the profits the companies make?

 

[werfie]

You think the millions of employees that work for large corporations aren't aware of the profits the companies make?

We are not talking about the millions of employees here, we are talking about the couple that work for the OP. Large corporations are also usually unionised which is in charge of those negotiations... which may or may not be the reason that so much is burnt down every now and then.

 

[Gaz{M}]

Percentages don't really mean anything to low wage earners. Their rate of inflation is way more than CPI.

7.5% increase on R2000 a month is only R150. 7.5% on R30 000 a month is R2250.

Electricity is going up 9.4% which on a household using R500 a month is an extra R50 a month. Bam, that's 33% of their increase gone. Milk up R4 a litre. Another R50 a month. That's just milk and electricity! And they have R50 left.

I know it's tough to try make people understand, so good luck. Next time, offer them 4%, then when they complain, make it 5.6%, then when they complain, go, "ok ok, we will have to cut our own salaries so you can get 6.3%." Then again they will complain until eventually you make some token gesture and say "Because I have sold my second property, you can all have 7.5%!"even if not true.

It's called price anchoring..

 

[requiem]

So the owners of the business get nothing but the workers are upset that the increase isn't enough.

Tell em to **** off.

There are millions of jobless people who would be very grateful to earn a living and get a increase in times like this.

Ungrateful swine.

 

[akescpt]

not happy with 7.5. ungrateful comes to mind. its the 'adequate' mindset that bothers me most OP. in the end that shyte attitude will cost your business more in the long run. people who are there just to punch a clock are like the walking dead.