Salary Freeze = High Turnover
My life has become a Business 101 class, and every day is a new lesson. Chapter one: you know nothing about being a manager. Chapter two: no, you really don’t. Chapter three: salary freezes stink, and there’s nothing you can do about them.
I wrote a few weeks ago about our salary freeze, which is still going strong. Have you worked for a company in a salary freeze? Could you tell me about it? How long did it last, what did you do, did you think it was fair?
I’ve lost a total of three employees now, all of whom gave me very reasonable desires for pay increases, which we’d fully intended to give them before the freeze came. Now I’m training someone new; in a few weeks, there will be another one. My biggest frustration is that there doesn’t seem to be a real concern from higher up about my “little guys.” It’s like writers are just growing on trees, like they’re a dime a dozen. This, of course, is extremely de-motivating to my staff.
I’ve sat and pondered hours on end how I could make things better: we tried an incentive-based bonus last month, with a very high productivity demand my boss suggested. That was a big bust. So I pleaded for an incentive at least for my best, fastest writer, who’s leaving. Got that. Now we’ve lowered the bar a bit, temporarily, to see how this will go over.
A business-major friend tells me there are some ideas you just won’t know the success of until you try them. Chalk one or two up to bad idea, thanks. I want so much to make things better for my department, and I want the company to do well. But my hands being tied makes that difficult.
So I’m trying to think of improvements I can make, creative strategies to employ, that will help employees and the company. It’s hard.
Are you in management? Have you experienced anything like this? Any advice for me?
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4 Responses to “Salary Freeze = High Turnover”
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That’s a really hard situation. I’m in IT, so our freezes are generally of the “no raise this year” variety. The way for us to get significantly more filthy lucre is to get another position. The money from a new employer is usually much higher than staying with the current one for 3% increases per year.
I have four items of advice.
1. Try to make the non-monetary factors attractive. The people and teams you work, dress code, flex time, fun work assignments, etc. will often satisfy as much as the money.
2. Look on the “bright” side, new staff offer an opportunity for new ideas and personalities to change the workplace for the better. In some industries, it gives a chance for the employees that stay to build their seniority in the group. It also provides mentoring opportunities for more experienced staff.
3. Never take it personally. You do what you can do, and you fight hard for both your staff and the organization. Send folks off to new positions with a sense that, although you will miss them, you are happy for their new opportunities. One of them may be your manager one day! Leave the door open for them to return.
4. Everything happens for a reason. These challenges give you an opportunity to learn management skills that are hard won (and look great on YOUR resume.)
I’m stepping off my soapbox now. Best of luck.
Annette, thank you so much for this feedback. What is the deal with IT, by the way? Almost every person who’s told me they’re in a salary freeze or have been in a salary freeze has been in IT.
I think you advice is EXCELLENT.
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I am an IT worker too and have with been with the same out fit for nearly 10 years now. I am still not back to the level I was at with my previous job (more so when one thinks that salary was tax free & came with housing provided). Yes, every now and then we get the salary freeze and then typically they postpone raises for a time. Fortunately my managers appreciate what I do and I have been getting okay raises.
I too am looking to leap.