Rationalising wages - HRM’s comfort
A motivated employee team is an asset to an organization or a company. Its fortunes largely rest on the level of performance of its employees. The level of performance stems from the satisfaction level of the employees. Employees act charged and motivated if they are adequately compensated and nourished in terms of wage, perks, honour and security.
Spiraling expectations of the employees are taking a toll in the industry and else where. The attrition statistics has increased manifold in recent times. And the reasons for the malaise are perhaps not probed by the sundry companies.
The main reason behind the growing attrition rate can be attributed to employees’ grouse against wage receipts in the present employment. It now falls upon the HRM team to safeguard company’s interests and tide over the exodus of skilled manpower by rationalising the wage structure in the industry.
Employees performance and motivation are the critical aspects for the success of a company. Rewards and remunerations act as fuel to keep the flame ignited. The wage structure should therefore, be drawn keeping in view the industry trends and the prevalent grades. A fair and equitable pay-structure that is rewarding and inspiring, and would not incite envy amongst colleagues should form the basis of wage policy. Special awards and incentives to outstanding performers should also be instituted. The grouse for seemingly inadequate emoluments would demotivate the employees and affect their work performance.
Together, the grade structure should be so simple and straight that it is easily understandable on the measures of equity and fairness. Significantly, what comes on fore, is that usually, the companies are governed by industrial relations, local work contracts and other extraneous considerations, and wages are fixed indiscreetly, which adversely impact the employee morale and the ultimate production output.
Rationalisation is the process of implementing compensation system that fairly treats and recognizes all employees regardless of their status within the organization. It assures matching remuneration with the contribution made, particularly when job priorities demand a shift.
A healthy wage policy requires that employees should receive monetary compensation for the contribution they make, and the positions of equal value should carry equal compensation. The process automates efficiency, competition and a hassle free HRM.