QUESTION

Dear HR Practitioners,

We do annual increment for staff. Staff in lower position have worked here for 10-20 years and their salary continues increasing until it becomes more than a manager.

We are aiming to set a salary ceiling for each position but we do not know the market rate.

I would like to know how your Company set salary for long serving staff? We do not wish to reduce staff morale but the Company also cannot afford to increase pay annually, with no change in job scope / workload.

Lily

REPLIES & COMMENTS

REPLY 1

U do a lump sum payment, example, if the person monthly salary is S$1000, you give him 4% increment, then u give him S$40 but as a lump sum, but do not increase base pay. So this covers his market and wage inflation, he does not lose out but will not see the case of someone earning more than their manager. If u really want to do salary range, it is job evaluation already.

JT