Question

Dear HR Professionals,

Is it normal not to have any pay increment in 2 years?

1. There is no performance appraisal being done in these 2 years to evaluate our performance.

2. Management's rationale is that as the job scope remains the same, no increment is necessary.

NT

Reply 1

Your HR might want to recommend a salary review [no bonus/increment] through:

1. Salary Negotiation - Use salary increment percentages to negotiate a higher rate of pay. An effective way to negotiate a higher salary is to gather market data on the average salary range for your industry. It is important to consider years of experience, education level, type of position and size of the company. The Bureau of Labour Statistics reports the average salary ranges for a number of specific types of jobs. If your salary falls below average for your geographic area, you may be able to negotiate a higher salary.

2. One-Time Payments -  A salary increment might be a one-time payment that substitutes for a bonus. An employer could use salary increments to compensate for higher health care costs or in place of medical care reimbursements. One-time increments are typically paid out during a single pay period.

3. Introduce a yearly performance appraisal if the time has come for a salary adjustment.

Rose

Reply 2

You may check your company HR policies on performance management. Technically, companies will not put yearly increment as a must. That having said, performance management/appraisal must regularly be conducted – increment itself can be the result of the appraisal. However, the sole objective of performance appraisal is not only for increment sake. I think you understand what I meant here.

While I don’t disagree that there may not be a need for market adjustment for job workload and scope that remains the same, the inflation is very real. You may check with the National Wage Council on their recommendations:

http://www.mom.gov.sg/newsroom/press-releases/2017/0531-government-accepts-national-wages-council-recommendations-for-2017-2018

Coming from private sectors, I understand what you meant by not having increment for two years. I’d seen that commonly practiced. I don’t encourage it, but it is rather common. So if your position allows you, please understand the situation better by communication. If the reason from the management is valid (ex: due to business expansion, tight cash flow. poor profitability, etc.), then it will be good that such information should be transparent and is duly communicated to the ground to avoid negative sentiments or speculations.

William

Reply 3

Not having a performance appraisal and no increment (across the board) are non-progressive signs. While we don’t mean pay increment across the board, but not having any at all is demotivating. Management should then communicate clearly what needs to be done for bonus and increment to be given.

Kathleen