Zero Wage Increase Again

The owner of a major hardware, furniture and hardware store in a dilemma about how to manage the next salary review process. After two consecutive years of frozen wages, staff were impatient financial progress, but there was no spare money in the budget. It was possible to pump savings come from process improvement initiatives in wage increases. However, the owner of motivation, hard-won funds had limited channel underperforming employees. On the other hand, he was … Read more »

The owner of a major hardware, furniture and hardware store in a dilemma about how to manage the next salary review process. After two consecutive years of frozen wages, staff were impatient financial progress, but there was no spare money in the budget. It was possible to pump savings come from process improvement initiatives in wage increases. However, the owner of motivation, hard-won funds had limited channel underperforming employees. On the other hand, he was looking forward to the people, to reward the value added. A plan that rewards only some employees could result in an angry backlash. He had to decide whether he wanted to divert the savings in compensation, and if so, he needed an effective distribution plan.
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from
Karen MacMillan
Source: Ivey Publishing
5 pages.
Release Date: 7 September 2011. Prod #: W11154-PDF-ENG
A zero wage increase re HBR case solution