After Walmart raised its minimum starting pay to $10 an hour, some longer-term employees (like one earning $12 per hour) complained that the strictly entry-level increase was unfair to them. And when the head of a company called Gravity Payments decided to pay all his employees at least $70,000 a year, some longer tenure employees complained that it was unfair to raise new peoples’ salaries and not theirs. How should Walmart and Gravity address these complaints?
When employees who are doing their job for long period of time and see that entry level employees are getting the same or near same pay then old employees feel it unfair because old employees have worked hard and give many years to the company like Walmart and Gravity, still getting no unfair pay.
In such situation, Walmart and Gravity can address these complaints in following manner-
Explain the workforce the reason behind the decision. When companies takes initiative to clear things out that why Company took the initiative then employees feel more supportive as compared to situation where companies did not clear things or reason out with their employees.
Companies should Implement ways across the organization to create fair pay scales or pay grades for each role, where pay is based on the position, the level of responsibility in the role, and the level of experience. Set the pay before anyone has even applied. This reduces the chances of inadvertently paying some candidates less based on their salary history rather than based on the pay that is appropriate for the job.
Companies like Walmart and gravity must Be clear about the requirements for getting a raise or promotion, and be consistent in using the established guidelines. This can help employers and managers to remain fair and consistent in who qualifies for and gets raises over time.
Have Open door communication policy where Employee's views and issues must be heard in Private manner. also Have counselling sessions to guide and solve issues of employees in effective manner.
After Walmart raised its minimum starting pay to $10 an hour, some longer-term employees (like one...
Dan Price, the founder of Gravity Payments, a small, privately owned company that provided high-service and low-cost credit card processing, surprised his 120-person staff when he announced that over the next three years he would raise the salary of all employees, even the lowest paid clerk, customer service representative, and salesperson, to a minimum of $70,000. The average annual salary at that time at Gravity was around $48,000, so the increase would nearly double some employees’ salaries. Price explained that...