Here's the dilemna.
Our policy limits promotional raises to 5%. We have an employee who has done great work and been promoted 3 times in the last 5 years, and is now a Director. (Reports directly to the CFO/CEO).
Due to the cap on promotional raises, this employee now makes $13,000 LESS than one of his direct reports he will inherit in the latest position and our director of compensation will not do anything. I have a meeting in a couple weeks where I have to explain this to the employee.
HELP!
From United States, Beaver Dam
Our policy limits promotional raises to 5%. We have an employee who has done great work and been promoted 3 times in the last 5 years, and is now a Director. (Reports directly to the CFO/CEO).
Due to the cap on promotional raises, this employee now makes $13,000 LESS than one of his direct reports he will inherit in the latest position and our director of compensation will not do anything. I have a meeting in a couple weeks where I have to explain this to the employee.
HELP!
From United States, Beaver Dam
Generally, there are pat ranges for each position, i.e.:
Level 1: (Min.) $25,000 - (Mid) $35, 000 - (Max) $45,000
Level 2: $40,000 - $55,000 - $70,000
Level 3: and so on....
With this scheme, a top performer is adequately rewarded for his/her performance and contribution to the organization. A promotion is a recognition of excellent work and a motivator for others in the organization to emulate.
Promotion should not entail added and more difficult responsibilities, while being "demoted" in terms of salary.
Arrange as meeting with the Director of Compensation and ask the question: "What would it cost, in terms of: employee morale (who would want to work hard for a promotion if subordinates were making more money; how would such a situation impact the newly promoted employee's authority; What kind of problems will the organization have in the future trying to recruit and/or promote top talent); perception of the organization in the marketplace (Why couldn't they retain a top performer), and the employee's perception of his worth to the organization (enthusiastic - work harder in new position or disappointed - just go through the motions, get the experience at the higher level, until it becomes unbearable, then leave) to replace him/her?
If the Director is inflexible and will not consider an exception (these issues should be handled on a case by case basis), then you should appeal to the CFO/CEO, with the same questions.
From United States,
9Level 1: (Min.) $25,000 - (Mid) $35, 000 - (Max) $45,000
Level 2: $40,000 - $55,000 - $70,000
Level 3: and so on....
With this scheme, a top performer is adequately rewarded for his/her performance and contribution to the organization. A promotion is a recognition of excellent work and a motivator for others in the organization to emulate.
Promotion should not entail added and more difficult responsibilities, while being "demoted" in terms of salary.
Arrange as meeting with the Director of Compensation and ask the question: "What would it cost, in terms of: employee morale (who would want to work hard for a promotion if subordinates were making more money; how would such a situation impact the newly promoted employee's authority; What kind of problems will the organization have in the future trying to recruit and/or promote top talent); perception of the organization in the marketplace (Why couldn't they retain a top performer), and the employee's perception of his worth to the organization (enthusiastic - work harder in new position or disappointed - just go through the motions, get the experience at the higher level, until it becomes unbearable, then leave) to replace him/her?
If the Director is inflexible and will not consider an exception (these issues should be handled on a case by case basis), then you should appeal to the CFO/CEO, with the same questions.
From United States,
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