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Increasing starting wages
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Increasing starting wages
Discuss workforce management, performance management, retention, communication, motivation, contributing to business results and other topics.
Top management has finally caved in to increasing our starting wages to improve recruitment (Believe me - we've tried everything else first!)
My problem is this: The increase in the starting wage w
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Forums » Topic Forums » General Forum » Increasing starting wages
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Increasing starting wages
posted at 7/15/1999 7:33 PM EDT
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Posts: 1
First: 7/15/1999 Last: 7/15/1999 |
Top management has finally caved in to increasing our starting wages to improve recruitment (Believe me - we've tried everything else first!)
My problem is this: The increase in the starting wage will be significant ($1.50/hr for most jobs), but it will result in some compression. I plan to bring anybody whose wages are below the new starting rate up to that rate; however, I'm concerned about the people whose rate is only SLIGHTLY ABOVE the new starting rate - and those people have been here for over a year. I can't afford to raise EVERYONE'S rate by a buck-and-a-half; it has to stop somewhere. Here's what I'm asking: Does anyone have some good (ie acceptable to current employees) explanations to provide so that I'm not faced with a plant full of disgruntled employees who feel that EVERYONE'S wages should be increased? Has anyone faced this situation? Thanks in advance for the help. |
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Increasing starting wages
posted at 7/16/1999 12:34 AM EDT
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Posts: 833
First: 6/11/1999 Last: 8/23/2001 |
As a general guide, after 90 days, an employee here receives a 3-percent increase, and then an increase (by performance) at the anniversary of hire, the average performer again receiving 3-percent.
When we re-valued, we raised the entry level. Anyone in the revalued position for less than 90 days was changed to the new entry level. Anyone in the revalued position for 90 days to one year, was increased to the new rate plus three percent, and anyone in the position for over a year was given the new rate plus 6% (3% for 90, and 3% for the year). If anyone was already earning over what the calculated new rate was, they received no increase. It wasn't the perfect solution, but it spread the compression over three levels, and was generally well received. Also, since we review wages on anniversary of last performance-based/promotion-based increase, anyone given a revalued raise did NOT have their review date altered, so if I recalculated their rate this week, and their annual review was next week, they'd get another raise. |
Forums » Topic Forums » General Forum » Increasing starting wages
