1. #1

    Employees demanding perks in salary but company is not in a position to do so

    I own a private software company. Recently a notice has come from the managing director of the company that the employees are asking for hike in their salary. But the compny is not in a position to give such hike. He also stated that the employees might go for strike as well. What should be done by me to control the situation?

  2. #2
    Kangaroo Array
    Join Date
    Aug 2012

    Re: Employees demanding perks in salary but company is not in a position to do so

    Being the owner of the private company,you should take strong action inorder to save your company as well as benefit the employees.This is a serious problem which is essential to be solved for the smooth functioning of your company.Otherwise this might lead to various negative issues.If it not solved,then you should try to reduce the effect of the problem for the time being.

    -This problem can be solved only by open discussion.
    -Go for a meeting with the representatives of the employees and the important rank holding persons of your company like the managing director,senior staffs.
    -Listen to the issues and demands of the employees.
    -Listen to the problems they are facing.
    -Then state about the present condition of the company.
    -Explain your inability to increase the salary of the employees due to the company's present condition.
    -Promise of hike in salary as the condition of the company becomes better.
    -Request for cooperation from the employees to combat the bad economic conditions of the company.
    -Request all to have patience for sometime and there will be positive response to their demands very soon.
    -You can use some emergency funds of the company to give small financial aids to the employees if they remain firm in their position.

  3. #3
    romance Array
    Join Date
    Oct 2012

    Re: Employees demanding perks in salary but company is not in a position to do so

    Hi friend

    You should try to explain to your employees that why they cant be given a salary hike at this time and try to appease them. If your employees go on a strike then it prove very harmful for your company which is already undergoing through difficult times. Thus you should not let your employees go to strike and explain to them the complexity of the matter in such a way that they will understand your situation.

    Make an announcement when all the employees are gathered at the same place. Tell them that your company will not be able to give its employees the necessary salary hike because you don't have enough finances and your company is undergoing a bad tiome financially right now. You hope that the employees will try to understand your plight right now and thus will not do something which will further hamper the working of your company.You assure them that once your company gets back to it s good finanxcial position all the deserving employees will get the deserving hike .

    I hope your employees will accept your request and thus will not go to strike. Good luck

  4. #4
    lamborgini Array
    Join Date
    Jun 2013

    Re: Employees demanding perks in salary but company is not in a position to do so

    Hello friend,

    Do not worry because worries make the situation even worst.Rather think of the ideas to handle the situation.

    You must announce a meeting for employees and other staff.
    Explain that company is going through bad financial phase.
    the reason for not being able to increase the salary.
    If the employees go for a strike, it will worsen the company's economy and still would not get any salary hike.
    So it is better for the employees that they work hard and patiently.

    Assure the employees that as soon as the company progresses , they will get increment in their salary.
    You must motivate the employees to work harder and better.
    They are the pillars of the foundation of your company.
    A company cannot function well if the employees are not hard and smart working.

    You will surely get positive response from the employees.
    Good luck

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