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Satisfactory compensation is the top concern of employees. Therefore, annual salary increase for employees is always a problem changing its answer continuously that the enterprises should solve to ensure the interests of the employees as well as help them stick with the companies for a long time.
So how does it have to be appropriate? Here is the answer for you!
Salary increase for all employees
Compensation helps ensure the life of employees, and at the same time is a condition for them to work hard.
Satisfactory salary helps employees to be motivated to work – Photo: Internet
Usually, in order to avoid envy in a community, leaders often approve salary increases for the employees at all ranks. However, this is not always supported by all.
Mass salary increase usually applies percentage rate on an annual basis. Some employees will feel unfair. The poor performer still benefits while the truly competent person is only equal to other employees.
Periodic salary increase
The enterprises can also apply the method of periodic salary increase in accordance with the content of contract mentioned.
Some labor contracts will include a provision of annual salary increase or semiannual salary increase. Based on the time of starting employment, the enterprises approve the salary increase, ensuring the reasonableness as well as receiving the satisfaction from the employees.
Considering the adjustment of salary increase on either an annual basis or a semiannual basis. – Photo: Internet
However, the enterprises should develop a policy of periodic salary increase based on standards, in accordance with the work performance of each person, avoiding the case where the employees only focus on working time instead of trying to achieve the highest results.
Periodic salary review
How long does it take for one-time salary review to be appropriate? Every year, business owners should review salary levels. You can consult an experienced person or a lawyer to see if the salary levels have been reasonable yet.
In addition, the enterprises can also base on the salary of each position at other companies to compare with them to see if it is competitive or not.
Consider whether the remuneration and benefits, especially the insurance premiums of the employees, have been appropriate or not. If the contribution is too low, you should consider increasing or adding allowances. If the contribution is too high, you should cut back.
Hopefully through the article, the enterprises have grasped some methods to solve the problem of annual salary increase appropriately and satisfactorily. If you need more in-depth advice on developing the policies of salary, bonus and benefits for employees, you can contact H2RB – one of the most superior recruitment service providers today.