Employers are finding it tough to manage salaries and other compensation during the pandemic situation.

Now in the wake of Industries opening up their operation, it’s very necessary to adopt a responsible compensation strategy for the employees. Finally, you need employees to take your business ahead.

So naturally termination or lay off is not the only solution. Even reducing or deferring salaries might be a temporary solution, but some compensation structure has to be attached with this to retain your employees for long term.

Some of the ways and means to have a win win situation is as below:

• Adapt curtailment of administrative and other overhead expenses.

• Change the salary structure with less fixed and more of performance based variables.

• If there is reduction of salaries, then the percentage factor should be applicable from higher at the top and further should proportionately reduce as per hierarchy.

• Train your existing employees for multitasking, so that fresh hiring can be avoided

• Create an incentive structure clubbed straight with performance, especially with a long term gain to avoid attrition levels.

• Instead of increments, try giving out non-monetary benefits.

• Keep a proper communication with employees, of the steps being taken for cost reduction.

• Set fresh goals for the company and make employees core participants.

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Stay tuned.

Anil Nair

Director

8 Hour HR Consultants Pvt. Ltd.

M | 9820286068

E | anil@8hour.in