Someone asked me in an interview that as a HR Payroll Officer, I have 50 employees in my company who have stopped their work. They are demanding a salary increase before they will resume their work. They are not listening to anything else; their only demand is an increase in their salary. So, what would be your action as a HR payroll Officer? I replied to the interviewer, but my answer was not satisfactory. Kindly answer this complex question. Advance thanks to all!
From Pakistan, Lahore
Acknowledge(0)
Amend(0)
1From Pakistan, Lahore
Acknowledge(0)Amend(0)
Your first reaction needs to be on assessing the reasonability of the demand by evaluating the impact of the requested salary increase, the organization's affordability of the demand, whether your wages align with statutory notifications, the prevailing industry and regional wages, as well as the strengths and weaknesses of the employees in case of a prolonged conflict. Consider the options available to the employer before initiating negotiations with the strikers, and ensure you have your best offer prepared for the circumstances.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
HR is only recommending the agency to increase pay. In case you receive such a threat/demand from employees as HR, your first duty is to report it to higher management. When talking to the employees, be courteous and respectful and do not commit yourself to granting an increase in pay. Details such as the current pay they are receiving, the existing pay scale, the impact of the increase on the entire company, etc., can be tabulated and presented to the decision-making authorities.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
You have not been informed of what your reply was. However, KKHR has provided you with useful input. I am just elaborating on it. In wage settlements, you need to do some homework before sitting at the negotiation table.
1) You cannot pay less than what is provided by the Minimum Wages Act for the same class of employees. Check this first.
2) Find out what the industry norm is - compare wages paid by the same or similar industries for the same or similar class of employees in the region where your industry is located.
3) Compare monetary rewards like incentives and bonuses paid by you and other industries, which may not be part of the salary but are part of the CTC. This gives you leverage in bargaining.
4) Compare non-monetary welfare schemes provided by you and by other industries, such as free health camps, to use as a bargaining tool.
5) Consider the paying capacity of the employer - how much of an increase can be sustained by the balance sheet.
6) Bargain for more productivity versus a salary hike.
B. Saikumar
HR & Labour Relations Advisor
Navi Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
1) You cannot pay less than what is provided by the Minimum Wages Act for the same class of employees. Check this first.
2) Find out what the industry norm is - compare wages paid by the same or similar industries for the same or similar class of employees in the region where your industry is located.
3) Compare monetary rewards like incentives and bonuses paid by you and other industries, which may not be part of the salary but are part of the CTC. This gives you leverage in bargaining.
4) Compare non-monetary welfare schemes provided by you and by other industries, such as free health camps, to use as a bargaining tool.
5) Consider the paying capacity of the employer - how much of an increase can be sustained by the balance sheet.
6) Bargain for more productivity versus a salary hike.
B. Saikumar
HR & Labour Relations Advisor
Navi Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Mr. Ali Asgher,
At times, in an interview for any professional position in an organization, only the interviewer knows what the answer would satisfy him because his intention might be to assess whether the candidate has the correct understanding of his role-play and as such whether he would be able to confine himself within his limits in a given situation which otherwise demands the coordination of other departments. Therefore, it would have been better had you narrated your answer for the question as you told then. Now, we, the respondents, are in a fix and to indulge in some sort of educated guess only.
Since I have no knowledge about the Law relating to Industrial Relations in Pakistan, my answer is confined to the contract of employment between the employer and employee and the primary role of a Payroll Officer or Payroll Administrator in the HR Domain of an industrial organization. Stopping work suddenly in a concerted manner under the pretext of demanding a hike in salary on the part of employees/workmen is a flagrant violation of the contract of employment and would enable the employer to deny wages/salary for the entire period of stoppage of work on the basis of the principle of "No work - No wages" apart from taking any disciplinary action as per the service regulations.
Payroll management is a portfolio under the HR Department of an organization. As such, a Payroll Officer's primary responsibility is calculation and distribution of payroll of employees periodically based on the inputs furnished by the Line or other Staff departments. Certainly, the Payroll Officer is not responsible for determining or setting salary levels of the employees. Therefore, in such a strike or stoppage of work by employees, the Payroll Officer has to ensure no wages/salary for such days of no work in the wage period based on the inputs passed on to him. If he is also charged with the IR responsibility, he should first resolve the stalemate and restore normalcy.
From India, Salem
Acknowledge(0)Amend(0)
At times, in an interview for any professional position in an organization, only the interviewer knows what the answer would satisfy him because his intention might be to assess whether the candidate has the correct understanding of his role-play and as such whether he would be able to confine himself within his limits in a given situation which otherwise demands the coordination of other departments. Therefore, it would have been better had you narrated your answer for the question as you told then. Now, we, the respondents, are in a fix and to indulge in some sort of educated guess only.
Since I have no knowledge about the Law relating to Industrial Relations in Pakistan, my answer is confined to the contract of employment between the employer and employee and the primary role of a Payroll Officer or Payroll Administrator in the HR Domain of an industrial organization. Stopping work suddenly in a concerted manner under the pretext of demanding a hike in salary on the part of employees/workmen is a flagrant violation of the contract of employment and would enable the employer to deny wages/salary for the entire period of stoppage of work on the basis of the principle of "No work - No wages" apart from taking any disciplinary action as per the service regulations.
Payroll management is a portfolio under the HR Department of an organization. As such, a Payroll Officer's primary responsibility is calculation and distribution of payroll of employees periodically based on the inputs furnished by the Line or other Staff departments. Certainly, the Payroll Officer is not responsible for determining or setting salary levels of the employees. Therefore, in such a strike or stoppage of work by employees, the Payroll Officer has to ensure no wages/salary for such days of no work in the wage period based on the inputs passed on to him. If he is also charged with the IR responsibility, he should first resolve the stalemate and restore normalcy.
From India, Salem
Acknowledge(0)Amend(0)
Dear Seniors,
I have faced this type of issue during the payroll process. Management is not ready to provide an increment. In that situation, workers are not working properly. Management is also not prepared to lose those workers. What can be done to solve this issue and make those workers work with full cooperation?
Please guide me.
Thanks.
From India, Chennai
Acknowledge(0)Amend(0)
I have faced this type of issue during the payroll process. Management is not ready to provide an increment. In that situation, workers are not working properly. Management is also not prepared to lose those workers. What can be done to solve this issue and make those workers work with full cooperation?
Please guide me.
Thanks.
From India, Chennai
Acknowledge(0)Amend(0)
I agree, it becomes a difficult situation to handle as the threat of adverse action can only worsen the situation. Here comes the need for sound Industrial Relations. Your skill would lie in making the employees empathize with the company on why the demanded increase/increment cannot be agreed. Facts and figures could only help to an extent. Some sort of emotional appeal is needed. The key would lie in individually taking into confidence the opinion leaders among the group of workmen and using personal influence. An important factor is the credibility of your management; if the trust and confidence in management are high, the task becomes easier; otherwise, the situation becomes very complex, and a prolonged crisis would be the result.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Dear,
As an HR professional, you have to act based on incidents.
1) Are you paying minimum wages? If you are not paying, you have to motivate your management to clear the issue.
2) If you are paying minimum wages, they have to give notice before a strike; otherwise, you can take legal action against them.
From India, Bangalore
Acknowledge(0)Amend(0)
As an HR professional, you have to act based on incidents.
1) Are you paying minimum wages? If you are not paying, you have to motivate your management to clear the issue.
2) If you are paying minimum wages, they have to give notice before a strike; otherwise, you can take legal action against them.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Seniors,
Yes, sir, we are paying minimum wages. Many times we have approached management to increase the wage limit, but management is not ready to do so. How can I solve this issue as an Assistant HR? Please guide me.
Thanks.
From India, Chennai
Acknowledge(0)Amend(0)
Yes, sir, we are paying minimum wages. Many times we have approached management to increase the wage limit, but management is not ready to do so. How can I solve this issue as an Assistant HR? Please guide me.
Thanks.
From India, Chennai
Acknowledge(0)Amend(0)
"Lot of times we have approached management to increase wages limit. but management is not ready to increase wages. how come i can able to solve this issue as Asst HR."
It is beyond the scope of HR to sort out this type of issue. Pay scales are determined by the company at a higher level, based on several inputs. HR can recommend and administer pay scales but cannot force management to increase pay.
From India, Pune
Acknowledge(0)Amend(0)
It is beyond the scope of HR to sort out this type of issue. Pay scales are determined by the company at a higher level, based on several inputs. HR can recommend and administer pay scales but cannot force management to increase pay.
From India, Pune
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
HR 00 BASICS-Question .doc
HR Round Question.pdf