Wednesday, July 30, 2008

Compensating discrepancies via better performance rating

This company operates in an unionized work environment, which means
our plant operators and technicians are members of the Company-
approved employee union. We had Collective Agreement that spells out
term and condition for union members. This CA is revised every 3
years and the latest revision was implemented last year in July.
Among new item added is new salary adjustment. Somehow during the
latest revision issue surfaced as not all operators benefited from
the adjustment. Some were considered not eligible.Salary people in HQ said anomalies were inevitable in big population
and the approach adopted is the one with less adverse impact. And
this resulted in some junior operators left out. They came compaining
to the management and CEO promised he would do something. CEO asked
HR to look into the matter. I said salary is one of the policy
matters managed by the HQ not by the branch HR manager. What the
affected staff could do is work extra hard to catch up with their
colleagues. Working harder normally translates into better
performance rating. Better rating in turn translates into higher
annual increment. HR and CEO met the affected staff during breakfast
meeting. We explained the process and calculation and everything we
wanted them to know. They bought in. Subsequently HR examined their
performance ratings, check with their superiors and where justifiable push
one notch higher so that they will enjoy higher salary increment.

Lesson learnts: Anomalies do happen in any salary revision
implementation. Use less damaging approach. Arrange for engagement
session. Explain. Don't apologize.

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